All Forum Posts by: Dan Maciejewski

We should always have solid occupancy.  None of the hotels are planning for a significant (other than seasonal) rate drop or loss of occupancy.  

My personal feeling is that the lower end will take more of a hit than higher end due to less disposable income on the lower end.  My higher end clients are still doing as well or better than 3 years ago and are still travelling for leisure.  They are also very optimistic about their next few years.

My bubble clients have mainly gone dark and have been predicting crashes in their personal economies.

In my area, a pool is pretty much de rigueur.  A pool increases rate by about a third (33%).  And occupancy would take a huge hit, too.  It would be like having no king sized bed!  

I'm on the bandwagon of:  Nobody cares about your property like you do.  

With that in mind, while Vacasa and Evolve have procedures and systems in place, your property is just one more number in their portfolio.  And they have people with way more properties than you that they will cater to a bit more.

My preference, in order of best to worst:

First, self managing.  Not only does this mean that you'll make more money, but you actually will have a a better chance of success because you will know every issue/problem/opportunity that comes up.  And you will actually care enough to react.

Next, find a local manager that specialized in your property type.  They seem to charge between 15-18% in my area.  They will want you to succeed enough to  buy more properties.  And adding or subtracting to their portfolio matters to them.  Plus, they will probably know your name when you call!

Finally, a "big box" manager.  They will charge more to support all their overhead, cutting gin to your bottom line.  And their overhead is really there to benefit them, not their clients.  They will have great systems in place, and should have enough under management that they can handle seasonality and price adjustments, but so should a local manager.  They will handle everything, but they seem to upcharge everything anyway, so they don't always provide the value that their price should reflect.

I know someone that was very successfully doing that in St Pete, so it's definitely possible!  St Pete has an explicit carve-out for owner-occupants, though.  Maybe check with the city to make sure.  I would argue that it should be acceptable, but you never know what they'll say.  The first offset is usually a warning, though.

These are all great suggestions. 

I would add:

--Make a list of what you want in an agent.  Asking questions won't help if you don't know want answers you are looking for! 

--Ask what their ideal client looks like.  They should know.  If they give you the generic, "I help my clients buy, sell and invest!," then you can be sure that they don't specialize in any particular market segment.  In most things in life, you want a specialist, not a generalist.

Something "Instagram-able"  

Something that they can take a picture of and post to their socials.  Think of those giant Adirondack chairs at every cruise port or beach destination.  Or locally we have a restaurant on Indian Rocks Beach with a giant shark that looks like it's just been caught. Or the Southernmost Point at Key West -- people line up for an hour to get a pic there.

In my area by the beaches in Pinellas, a cool mural by the pool works.  Something beach-y or tropical.  I also recommend putting your houses name, e.g. "Tropical Terrace,"  "Beachy Bungalow," "Terraza de Yona on 72nd."  That way the post can also act as a direct ad if anyone wants to search.  If you're super marketing-oriented, you can add your hashtag or whatever they do!

People love having memories and giving them the excuse for a pic is a great way to stand out and be remembered.  And referred.

I have definitely seen floor plans that are super awkward and need a dining area.  But for the most part, in my area a 3 bedroom is worth a lot more than a 2 bed in terms of ADR.  I would assume that holds true everywhere.  The more you can sleep, the more it costs.

If you're really getting a 34-36% cap rate, then you shouldn't have a problem getting partners on that!  That's great cash flow for that investment.

33785!

Other than that, both Tampa and Pinellas are very densely populated so entire zip codes run the gamut from 85k houses to 10million in just a few blocks in some places.  You'd probably be good buying a newer build if your main goal is appreciation in the 1st year and then rentability in the future.  @Kristina Kuba mentioned some neighborhoods that are "up-and coming" with great appreciation potential in Tampa, and you'd be well served in neighborhoods close to downtown St Pete, as well.  The city is putting a lot of money into improving previously underserved communities and a lot of investors, builders, and developers are moving their money in, as well.

 What's your angle?  I assume you're not a developer looking for connections with city council members!  The groups that are starting hundreds units projects are betting on the market.  There's hundreds of million flooding the market with development.

The acquisition of small to medium multifamilies looks like garbage based on current rents.  BUT the Tampa market is projected to grow almost exponentially in the next decade or so.  We have many sectors of mid-to large cap business relocating here.  And that brings jobs.  As long as we can stay business-friendly, that will continue.  That means rents will continue to come up -- to a point.  But they can't rise forever.  They will stop at the level that the ideal tenant for the asset class can no longer afford to live there.  At that point, you will have to spend money to upgrade the units, hoping that the neighborhood does the same.  Or have already purchased in either an improving neighborhood, or an established one.  

There are still plenty of undercapitalized small to medium multifamilies in the Tampa Bay Area.  Not many ion-market, though.  And the ones on-market are asking almost the price to build new!

Personally, my multifamily bets go to:

1. Luxury units in established neighborhoods.  South Tampa will continue to draw high-earning tenants that will need to rent before they can buy/build their homes.  

2. Affordable units that will continue to be in demand as mid- to lower-income tenants get priced out by other landlords.  I'm not saying be a slumlord, but there will continue to be a huge draw for units renting, say, 1200-2000.  Especially units that are well maintained and updated.