All Forum Posts by: Corbin Loveless

@Jake Durell it sounds like you're leaning toward your second option. 

I would look on Air Bnb for the Superhosts in the area and develop a relationship with them. Someone will be willing to provide the details of their investments- what's working, what's not working, what would you if you could do it all over again? etc. A ton of people in the real estate community are willing to share. Take advantage of this and find a subject matter expert in your area to consult with (someone who has no dog in the fight and isn't trying to sell you something!)

@Jacob L White I second @Luke Carl. Benchmark on other investors by looking at their listings and Air DNA data, and try to develop relationships with the investors in the area you're interested in. While some folks play it close to the vest, there are still a ton of investors that I have found through Air BnB that are willing to share their experiences. 

I'm from Memphis and used to own several rentals in the East Memphis area. I have sold all of my Memphis rentals and converted them to STR investments. While all of my Memphis properties performed well for LTRs, I will not be investing in Memphis in the future for a few reasons: Crime is pretty out of control (if you're not from the area, it can be tough to navigate this), it can be a tough rental market due to professional renters (folks who take advantage of landlords), and the last reason is that it's highly competitive. Most of the deals are captured by turn-key companies and sold to out-of-state investors that are okay with thin margins because the real estate is cheap.

I'm investing in Smoky Mountain STRs and Knoxville LTRs in the near future. Both are great markets. 

@Nathan Gesner for investors that want to purchase an STR in a tropical (US) location, do you know of any alternatives that are more STR friendly?

@Kerry Baird completely agree. This is where the mom and pops of the world have the edge by treating guests and customers like people!

I'm not against property management at all. I've used several and had some good experiences. I just don't want to give away any margin, and I like the control that self-management affords. 

If you're talking about future investments, I agree with the others that it's all about the natural features. You can always add new furniture, gaming systems or TVs, pool table, or hot tub. The thing you cannot improve is the location and proximity/convenience to the real attraction. Guests don't come for the hot tub. They book their vacations for the mountains/beach/river, etc. If you have the mountain view, property on the beach, or river (A+ location), you will always beat out the competition in the B location with the best pool table, hot tub, gaming system, TVs, mattresses, etc. 

Amenities that I think matter the most- Bedding, TV/Internet, Kitchen. If these are all premium, you will have happy guests IMO.

@Joe Villeneuve that is one of the most thorough answers I've seen on this question. I'm stealing this!

In my experience, the big brand property management companies do not provide enough value to warrant the 10-15% property management fee. I worked with Evolve last year to set up an STR and allowed them to manage my property for several months. They are great at getting the property ready for rental and optimizing the listings but don't add value on the operations side (in my opinion).

Based on my experience, my recommendation is to use Bigger Pockets forums and local Facebook groups in the area to find good people. Talk to other investors and ask for advice. Find a Superhost in the area (or 10) and see if they will offer suggestions. Then go to the property for the initial setup. Stay in the property for several nights and create your list of needs- what is this property lacking? Use that time to conduct interviews with cleaners and meet your maintenance team. Have the work done and get the property listed. 

Your local relationships will determine your success at the end of the day. The way to ensure you're getting the highest ROI and that this return is sustainable year after year is by finding great people in the area and developing those relationships. I don't think it's a coincidence that this also seems to be the most challenging part when I speak with other investors.

STRs are not a set it and forget investment- that's the catch.

@Tucker Kincaid welcome to Knoxville, I'd be happy to connect and talk real estate strategy. Just shoot me a private message to connect.

@Andy Yong Welcome to town. Happy to help you with your STR strategy and talk shop anytime. I'm in South Knoxville, helping investor clients in the Smoky Mountain market.