All Forum Posts by: Collin Hays

I've bought STRs at the top of the market and the bottom of the market, and all have more than paid for themselves.  If you buy a house for $300K today that produces $45K a year in rent, does it really change your world that much if you could have bought it for $250K three months later?

Nope.  $45K a year is still $45K a year, which is why you bought the property to begin with.

Other than a few huge metro areas, COVID is turning out to be a ruse.  We’ve been duped.  Something like .2% of the population has it, and it’s killing about 1.5% of that .2%. 

Americans are pretty quickly figuring this out and it will soon all be over.  Offer something where the numbers work.  COVID isn’t going to have any measurable impact on the return over a 10-year time horizon 

I suspect that VRBO/Homeaway is holding onto every penny they can right now, for as long as they can.  Not a good sign that this is going on.

I personally think VRBO's payout system is a scam, on several levels.  I am considering a way to start allowing home owners to come in under my merchant contract so that they can get immediate payment. I don't know that I can, but I am looking into it.

This really sounds like a deal for your local banking relationship.  Find a bank that keeps loans in house that likes your deal and will finance it.  

STRs are a business.  If you are running a business, you have to have “powder in the keg” for things that happen.  I’m preaching to myself too. 

Three years ago I had a STR burn to the ground in a natural disaster. It took me 2 years to rebuild it and of course I had 2 years of lost revenue. Yes, insurance paid for some, though not all, of the loss - it often doesn't. Insurance policies don't contemplate rebuilding costs rising 50% overnight and 2 years to rebuild.

It cost me $165-170K out of pocket for this disaster and I didn’t have enough $$ to cover it.  Fortunately I was able to do some financial wrangling to come up with the money.

The moral of the story is that you need cash to get you through. 

As to your original question, yes, there will be great deals out there because the owner didn’t have $$ to get through.  You might even see some short selling again ala the housing crash a decade ago.

If the owners are willing to finance you as you mentioned, I would pursue that route.  No brainer if you can get good terms.  In fact if they need income it might be better for THEM to finance you. If you pay them 4.5%, where else are they going to find that kind of return with their proceeds?

I went to Panda Express tonight and ordered corona chicken.  I probably should go get tested tomorrow.

I'm sure someone in Asia could do that for a lot cheaper and then you'd be crushing it.  ;) 

correct.