All Forum Posts by: Dan Maciejewski

Quote from @Nathan Gesner:

You advertise it as a minimum 7-day stay and that's what you require. If someone wants to stay for three days, they pay you for three days, you sit vacant for four days, and then rent to the next person.

The reason we have so much backlash against STR is because of people that cheat.

This is the answer.  Honestly, there should be very little occupancy drop from a 2/3-night minimum (Which is fairly normal).  And you may find better guests that want longer stays.  You should not have any ADR drop at all.

Quote from @Benjamin Furney:

Hey BP folks! Been doing more research on the STR and have discovered about 20 STR markets. However, basically all these markets have very high median home prices or they are oversaturated. Im wondering at this point, how realistic is it to find a good market, without over saturation or to high price points?

High price points are relative.  To the buyer, it depends what they are looking to invest.  If you are spending 250, and everything's 350, that seems high.  It you are spending 700, then that seems low.

To the investor, it depends on the ROI. I would say that a 9%+ cap rate is pretty good, and we're maintain that in Pinellas County for the prime locations and well-run places. But if the prices are 350 and you're seeing 4% cap rates, then the same 350 is very high!

My median price point is sitting at 430 and average price is at 600. That's fairly flat to slightly up for the past few months and up 10% YoY. But the rates for vacation rentals is still trending up for the well-run places. So we're maintaining 9+% cap rates. CoC has dropped due to interest rates, though.

We're in a good area in that SFR housing is not really being built, due to the fact that we're a fairly built up peninsula, so there's no place to build. There have been a lot of purchases for STR over the past few years, and not all of those people will still be in business next year. Many think that they can "set and forget," have crappy PMs or manage themselves like slumlords, and keep their reviews and occupancy. As soon as their ratings drop. bookings fall off, and then their rates have to be slashed -- just like any business!

We are seeing a lot of hotel rooms being built (of all ranges of ADR), so the big money is definitely seeing opportunity.  The industry publications are predicting our market to hold strong on rate and occupancy, too.  There are at least a dozen markets in the country that that holds true for, too.  I would guess that they all have varying median and average price points for SFR.

I think the point that @Luke Carl is making is that if you are in the top 10%, you'll be fine in any market.  I always tell my clients that they have to plan to be outstanding to succeed.  They don't just hand you superhost status, you do have to earn it.

Plenty of my clients are looking for their next purchase, so it's definitely realistic to invest, but as @Michael Baum points out, you have to buy smart and underwrite well.

And remember, I spoke to a LOT of people over the past few years that couldn't make their numbers work and never bought.  I heard that it was a bad market to buy from a LOT of people!  

But a lot of people did buy and look like geniuses.  I guess I'm saying, a cash flowing investment is usually a good buy, no matter the economy, interest rates, median sales price, gas prices, bidding wars, amount over/under asking houses are selling for, or whatever else people use to justify inaction.  

You can call but they don't always give the right answer.  You never want to be in a, "Betty told me it was good on the phone" situation!

Almost every city will have a code of ordinances on Municode.  Google "cityname" municode and that should get you there.  Then use the search for terms like transient rental, vacation rental, short term rental, etc. . . 

Keep in mind that most states allow municipalities to change regulations, so also look for news about meetings and see which way the wind is blowing in that area!  Thankfully Florida preempted all city and county regulation, so nobody's getting any stricter than they already are around here!

Quote from @John Underwood:

Where do you like to go to on vacation?

Start there and see if there are any STR regulations.

 This is the easiest route, and the one that a lot of people use for their first few purchases.  It also has the advantage of you not starting your education on the area from scratch.  You should know the draw already, and know the area a bit.  That way you should know what neighborhoods you do and do not want to buy in.  

Plus, you can use it as your vacation house, if it makes sense.

Costco or Sam's Club are decent places.  

You can also try HD Supply, you just have to have a business address to send the supplies to.  I get some things for my rentals from HD -- air filters are way cheaper in bulk there!

Quote from @Bob S.:

Quote from @Dustin Pavlik:

I have been traveling to Pinellas Co. - specifically Clearwater and St. Pete for years now and absolutely love the area.

I see so many STR'S on Airbnb/VRBO and have rented several myself. Everything I read says that these two specific city's along with many others in the county do not allow STR'S less than 30 days. Are most people taking the risk here? I'd like to get an Airbnb myself but can't figure out what area would be best and easiest.

Thanks for any feedback!

 Check out Dunedin, FANTASIC, I lived there for 2 years. One of the best small towns in america 

Dunedin doesn't allow STR except in a very small area surrounding downtown. It is an amazing town, though! I loved it when I lived there.

Quote from @Jacob St. Martin:

It is also possible that they are granfathered in. In most areas when they pass restrictive STR laws, STRs that were operating before those laws were passed are exempt.

 There are only 13 properties grandfathered in in Clearwater Beach.  Clearwater has regulated STRs for practically the entire history of the city.  It's a very tourist driven area,

Yes, if they are operating in the city limits of either city, they are just breaking the law.

There are plenty of areas in the county that is is legal and very profitable to operate an STR -- no need to risk fines and losing an investment!

The age-old question: "How do I get more clients?"!

PMs get Realtor and current client referrals, incoming leads from their own web presence, and sometimes guests buy and become clients.  Those are all people that have already seen value and send business over. 

You can run ads, and you can cold call current STR owners that are self managing.

Start a newsletter and add prospects to the email list. Provide value and people will remember you when they have a need.

A lot of people also get clients from right here.  Provide value and be the go-to expert, and people will notice.

Like everyone here has said, you can get a second home / vacation home loan still (I think).  You only need to use it for personal use 14 days.  

The rates are going to be the same as an investment loan though, so the only upside is less cash out of pocket.  But that will make cash flow harder. . .