All Forum Posts by: Dakoda Spencer

If you are interested in investing out of state you could always consider doing some sort of partnership too. This could also help you benefit from the cash flow of STRs but potentially have a partner who does most of the work managing it. This is the kind of structure I am trying to work out in my deals right now!

@Dakoda Spencer- thanks  1)  get  formally  pre approved  with a lender in order to  learn / understand the process and  also  so you can determine if you are  able to  obtain financing   2)  if you are not able to  get approved or  if you arent  ready -  this still  will be a good   exercise in order to  learn  .... 3) the pre approval  process is  free / non binding  and relatively easy - good luck

1. Research your market: It's important to understand the local demand for short-term rentals and the competition in your area. Look at Airbnb data and other online platforms to see what types of properties are popular, how much they're renting for, and how often they're booked. You can also talk to other STR owners or local real estate agents to get a sense of the market.
2. Determine your business model: There are a few different ways to approach the STR business. You could buy a property and manage it yourself, hire a property management company to handle the day-to-day operations, or use a hybrid model where you manage the property but outsource some tasks like cleaning and maintenance. Consider your time, skills, and resources when deciding on a model that works best for you.
3. Develop a budget: Calculate the costs of acquiring and operating a property, including the purchase price, closing costs, renovations, insurance, property management fees, and marketing expenses. Make sure you have enough capital to cover these costs and still have a cushion for unexpected expenses.
4. Consider the location: Location is important for any real estate investment, but it's especially critical for STRs. Look for areas with high demand for short-term rentals, such as popular tourist destinations or areas near major events or attractions.
   Find yourself a good STR broker and investment advisor: You can google awning str buying to find one such nationwide option. There are others out there. Having someone experienced on your side is a huge benefit

 Hi Dakoda! I am mostly seconding everything above.  We started with one unit in 2016 and now have 70+.  We are in FL, which is a great market.  You will want to find where you want to be (there are plenty of high traffic markets) - you can use airDNA to help with that.  Other than that I would not buy any courses, all the info you need is here.  Feel free to reach out to myself (and a lot of other helpful people here as well) with specific questions.  Best of luck!

I just bought my first STR in Pigeon Forge/TN. Excellent market. I can connect you with my agent if you are interested.

There are the big 63 National Parks (Yosemite, Grand Canyon, Great Smoky Mtn, etc) and a few hundred other national park sites like Pictured Rocks National Lakeshore (MI), Craters of the Moon (ID), Mt. Hood National Forest (OR), etc. Most folks don't know anything more than the biggest parks, which come with a very expensive price tag for real estate. The link below shows visitation numbers by month going back to 1979. If I were you and lived in West Virginia, I'd look at something near New River Gorge National Park. It's right down the road, gets over 1.5M visitors per year, and has a low entry point/price for a new investor. 

https://irma.nps.gov/STATS/

Read Avery's book and this forum for all the answers.

It's harder and more expensive to get a short term rental up and going than you think it will be, and it is easier to manage once it is established than you think it will be. 

Other basic pieces of advice - do your own research. I like national parks bc there is a lot data on visitors. Lesser known places like New River Gorge, Mammoth Cave, Pictured Rocks National Lakeshore, Shenandoah, Acadia, etc. are going to outperform from a cash on cash, purchase price to annual gross rents standpoint.  Airdna, rabbu, and others are a useful tool but not to be relied on completely. Stalk airbnb and vrbo listings in the areas that you are looking...find other listings that have average to below average furnishings, pictures, etc. that are doing well. That was the best data point for me getting started. I bought a house just down the street from a place that looked like two college guys furnished it. And that house was booked up like crazy...we have since outperformed that property (feels better than it should to watch our calendar fill up before theirs). During the "holy crap, we're spending so much money, this better work" period, it is reassuring to have those comps to look at for encouragement. 

There's a lot more, but I'll stop at this. Launch your listing at the start or middle of peak travel season for wherever your property is located (likely summer). You'll get the new listing bump in search results for the first 30 days on the booking platforms. After those first 30 days in peak season, you'll have a fully booked calendar and will continue to show up well in search results, get a much needed cash injection, and launches you and you listing off with a great start and some momentum. 

Feel free to send me a message if you think that I can be helpful or if you want to talk in more detail. 

I would use awning and airdna to research market potential. No tool is perfect, but one can reliably understand if the cost/market potential ratio makes sense to pursue.

is this purely an investment for you? Also personal use?

The STR market is at an inflection point where many cities/counties/HOAs are learning what ordinances need to be in place, so please do not take this risk lightly.

a condo association can simply say “no maś” and you are effectively 
screwed. 

There are all sorts of mentalities out there around blue chips markets being tried and true/over saturated, etc.

If it were me, I would research which markets had the best potential based on your budget and proximity, then start reaching out for STR specific realtor contacts in those markets in this forum