All Forum Posts by: Christopher Price

Quote from @Dilip Ra:

@Christopher Price @Jeremias Rodriguez - Would you still recommend a STR(lots of competition) /MTR(unfavorable owner protection) for a new investor in Greater Washington area and are there any good areas to consider?

What makes an STR profitable is more than just finding a good area. Looking at Airdna and Profitmaps and other data, there are properties that do really well in certain areas revenue wise. These properties are managed by operators that have the knowledge and experience and constantly learn how to optimize the listing to rank higher and overall bring in more revenue. That is the key! There are 6,000+ properties in the area and you have to stand out.

I would ask this. What are you purchasing for? High COC numbers? Better Cashflow? is your goal to offset your W2 taxes and take advantage of doing a cost segregation? Or are you looking more long term and focusing on appreciation?

Lastly - Find a broker that understands this and is even an STR investor themselves because not every broker is the same.

Hey!

I am in Seattle a d I am in that same range with all the technology we use for each property. 

Quote from @Darian Turner:

I'm in this boat now too - looking to convert an underused weekend waterfront property in Olympia into a high-availability STR.

We are looking for a great co-host or property management company, and would love recommendations!

Hi Darian,

I own and operate Signature Stays. We help owners like yourself with their unused properties and help turn them into profitable Airbnbs as well as investors looking to purchase in the area and need help managing the day to day. We use cutting edge technology that allows us to get an edge on the competition and ultimately bring in more revenue than others around. Like hotels do, we make sure to optimize the property and market to the correct demographic and on the right channels to get your listing seen by those that are looking for it. 

Happy to jump on a call if you’d like and get a bette understanding of what your goals are and if you would be a good fit for each other. 

Here is some more info for you to check us out. Also I’ll include a calendy link as well. 

www.yoursignaturestays.com

https://calendly.com/signaturestays

Hi Jeremias,

Seattle does have regulations surrounding STR's in the city. There are areas around that have adopted some of these regulations as well, but regulations aren't necessarily a bad thing. I wouldn't want to purchase or manage STR's in an area that is unregulated because there is a higher risk associated with the laws changing and then you're SOL with your investment….take NYC for example or Dallas.

I'll start by saying that there are a lot of STR's in Seattle currently(6k+), which has been increasing over the last few years if you look at the numbers being listed. With this you have a higher competition for the same people that are planning to come visit. Imagine having an RV park in a secluded area and anyone that wanted to come nearby would have to use your RV park. You are doing really well with all of your stalls rented each month. Then more and more RV parks start to pop up around. You start loosing some guests to them and then your revenue dips. Then other fancier RV parks start to pop up and more guests are lost to them. Then "oversaturation" happens and the only way to get your guests back is to improve your property so it stands out against the rest.

This is kinda what has happened in general in the Airbnb market. A lot of people were making money listed their vacation home or cabin in the area and then the gold rush happened. Whats happening now is that the some people are not making the same amount of money on their property and therefore are turning back to long term rentals or what not…these people that were just renting out their vacation home or their RV park and don’t continue to improve the property or add amenities that others do not have will fall off and not do well as an investment. 

So…with seattle as an owner you can only have 2 listings-your primary and one other that is an investment. There are definitely areas that do better than others but you have to do your research on who is visiting the area and design and market to these guests. You have to find out what others are doing in that area, and do better.
Once you do that then in any area 3 things will determine if you will have better revenue and better results than your competition. 1-design 2-Photographs 3-listing optimization.

I just had a client purchase in seattle a few months back and the listing we created is the best one in the area and is on pace to do better revenue wise than the others because we did those three things and made the listing stand out. 

Just make sure you do your research and always underwrite conservatively AND in my opinion underwrite it that if you can't make it as an STR that you make sure the numbers will as a long term rental.

Best of luck!!!

Hey Josh!

I have also been looking in that market. I co host for other owners in select markets and the poconos is an amazing area for STRs. You have to be selective now that there are a lot of others in the market but it’s very doable to be successful. I’m from the area originally and grew up going there as a kid. Definitely use John Bianchi method along with airdna, don’t just use one source. John knows his stuff and his company he works for also invests in the area. 

I have an amazing realtor you should use. He is very well connected to local market and he also runs a local vacation rental owners group. He owns an STR himself so he knows all the info.

Happy to connect and share insight. 

if you’d like to connect reach out and we can chat sometime. Best of luck! 

Quote from @Jp Kilduff:

Quote from @Salvator Lorick:

Quote from @Jp Kilduff:

Quote from @Kira Sikes:

Quote from @Jp Kilduff:

Find a skiptracing company with flexible pricing plans, no long-term contracts, and excellent customer service to pair with your list generation. If you'd like a referral code or more information let me know.

 I would be interested in the referral code. I am about to launch my investor division within my brokerage and doing all my research on the best places to find lists, skip tracing, scripts etc. ANY and ALL advice anyone can give me before we start smiling and dialing would be great!

 I sent you a message :)

 Jp can you also send me the referral code? Thanks

 Yeah man, I can send you the link with our referral code. Check your inbox buddy!

 Would be interested in the code as well. Have a group of investors looking to find the better skip tracing companies. Our lists are a lot smaller and more specific and defined. I know others mentioned the larger lists work better, not sure how that makes sense unless is solely on a $$ base for the company.

How big is your place? Not sure what your budget is but it shouldn’t break the bank. Design is going to play a major role in your revenue so you know. Going cheaper on what you purchase isn’t the best option in most cases. If you want to stand out and demand top dollar you need to add a unique design and quality furniture.  I can send you my design people that do an amazing job, they have tiers as well where the design only and not the buildout(which is something you could do and save the $$ on that part). Just a thought. 

Another option is Minoan. They also allow you to put er codes out for guests. So if they like the bedframe or couch, they can scan it and buy it-which you can get a cut of. 

Quote from @Jon Martin:

Quote from @Michael Baum:

I think it would be fun but I no longer have the ability to be as involved as running a small hotel.

We came close to buying a 24 room BnB in New Hampshire a long time ago. Had a restaurant and a small bar. Very cool place but decided to stay put rather than roll the dice.

No longer in the cards for us.

Depending on the layout it could be much less work than a traditional hotel/motel and managed in a similar way as an STR, just at a bigger scale. I've stayed in boutique hotels that were minimally staffed with keyless entry. Then you could lease the restaurant out to a local restauranteur.

That said I would still want to sub out the management. 

You are correct Jon. These hotels can be run just like STR's which is why they are so appealing. Ive seen some actually removing the restaurant all together and creating a community space/social gathering space. Some have added a game room as well as couches and common areas which is a great option.

I plan to keep the management in house with our STR property management company. Some things I realize are not in my wheelhouse any more so I respect your decision. I stopped flipping properties in the past and focus on what I am good at and sub out for the rest.

Great post! 

With regulations tightening and getting impossible to net a solid COC it makes sense. Personally I am focusing my efforts on these mom and pop hotels in those and other select markets.

I know some have seen drops while other have seen improvements in overall revenue. Market dependent as well as the specific area inside that market. Some places in seattle got hit and you see owners putting their properties for sale. Other places also in seattle are doing well.

Saturation is part for the problem, but when you dig deeper when I comes to bedroom count you see that there is limited saturation in the 5+ bedroom count. There is less than 3% of 5+ bedrooms in an area of 5,000+ rentals. Those properties that are in that 5% that are designing the property better and adding those top amenities will continue to thrive. Find that in your market and you’ll crush it.

Do a lot of research on your market to understand where it’s trending like bedroom count and specific amenities that can set your property apart.