All Forum Posts by: David M Trapani

Hi Steve!

I may be interested or may know some folks who are.

What's the address? Any pics?

Thank you!

Good insight Wendy!

Yes, it is sad some areas have banned Airbnb (or for all practical purposes, have nearly banned them). Palm Desert and South Lake Tahoe are one's I personally would avoid. Also, Cathedral City just put a moratorium on new STR permits.

Palm Springs has medium to strict regs, but they allow STR's. An initiative / referendum tried to ban them in PS last June, however, that was resoundingly defeated by the voters. It's a very hi demand location for guests. PSP had it's record year ever for most traffic 2018. Casinos spending millions to expand. Millions being spent to upgrade the tram. It's happening in PS.

Cheers & good luck! 

Hi Dustin,

Sorry, didn't mean to suggest any particular city / town has totally banned them. Ran into this recently with an agent in Palm Desert as well.

My understanding is there's litigation in SLT over this issue. Also, in Nashville.

In my humble opinion, it takes nerves of steel and quite honestly not worth my effort to work in less than user-friendly STR jurisdictions.

There are many other great ones out there!

I agree with your comment about staying in tune with the STR political climate, wherever you go. Best to choose a place where 1. you can long-term rent the place for good cash flow; 2. You would be willing to live there yourself if need be or wanted; 3. High growth, jobs and destination location so you gain appreciation in addition to cash flow.

Always be ready to 1031 out before the STR hostiles take hold!

Cheers!

Hi Eric,

I agree with Jaron and Matt's messages. 

I'm also not an "expert" but have owned/operated 6 different Airbnb properties (1 condo and 5 sfh's) in 5 cities / 2 states in the last 5 years.

As you sense, the opportunity can be quite profitable.

It's suspicious though that there aren't any short-term rentals ("STR") listed on the platform you checked out. Not sure which location you're scouting.

As you know, some cities have essentially or totally banned them (New York, South Lake Tahoe, Nashville, Palm Desert, etc.). Those are to be avoided.

Before investing in one it's a good idea to type into your search engine: "ABC city short term rental ordinance". This will give 2 key bits of info. 1. What if any laws affect STR's and if allowed, what the process is for a permit; and 2. News articles on the political climate or developments on STR regulations.

Must have this data before spending a penny. If it looks promising, I personally look for user-friendly (reasonable) STR rules reasonably priced, partially or totally furnished property (nice furniture appropriate to the locale & decor and lighting can be added) in an excellent location close to the action and amenities, walking distance if possible.

Also best to be in a popular destination location with growth and jobs to assist appreciation in addition to cash flow.

Haven't done a ground-up build on one of these, so hard for me to chime in. Personally, it sounds like a lot more risk involving contractors, possible mechanic's liens, city permitting issues, insurance, etc.

Not that I would discourage it. For the right location, could be worth.

I like to hit the ground running though and prefer an existing property, which is turn-key as possible.

Best wishes & good luck!

Based on the consistent performance of the property you have there, my vote would be to keep it and buy another one. Hopefully as good or better.

When you have 4-5+ successful STR's going, you're going to see income into your account every week and sometimes every day or every other day.

Combine that with some solid LTR's and those will send money to your account on the first of each month as a kicker. 

I wish I could remember which of our BP colleagues coined the acronym VOM (Velocity of Money), but that seems a great description & something worth striving for.

All very good insight here!

Hello David, I'm a Northern Calif native now based in Franklin, TN.

I have a few STR's in the Coachella Valley, CA that do well. Also interested in Joshua Tree, CA.

As you're looking to buy out of state (I'm moving more in that direction as well), my recommendation would be Franklin, TN. User friendly STR rules and a growing hi demand destination location close to Nashville.

Currently working with Avery Carl on (potentially) acquiring an STR in the Gatlinburg, Sevierville, Pigeon Forge area.

I like certain areas of Texas. While they have no state income tax, they do have quite high property taxes (higher than Calif in several areas).

TN has not state income tax and relatively low property taxes (somewhat higher sales taxes, but that's at the discretion of the spender).

Best wishes on finding a great deal!

Yes, I like those answers! Whatever makes the most money is the right mix.

Was reading from one of our colleagues posts about VOM (Velocity of Money). I think he called it. It was a new one on me - but it's an apt description. Back to VOM in a minute...

LTR's for areas that are popular with solid tenants good job prospects, and low vacancy,  upward pressure on rents and no rent controls. If they cash flow, keep them.

STR in destination locations, high growth areas, with a cool (not too large property) close to the action (walking distance if possible) where you yourself enjoy visiting / vacationing.

The combination of STR income every week (sometimes daily or every other day if you have several) and LTR monthly checks on the first of the month is nothing short of fantastic!

You get money into your account constantly! VOM!

ps - Echoing Robin Searle's post - absolutely agree with her. Always keep your ear to the ground on political climate changes re: str's. Always be ready to 1031 out if things start to get dicey with local gov't. With any luck you will be able to enjoy significant rental income, appreciation and will have (aggressively) paid down principal on your mortgage (if you have one) so you can trade out to friendlier climes way ahead of the game.

Good question Sarah B.

My current favorites for STR: Franklin, TN, Palm Springs, CA, La Quinta, CA

Have an offer in on a home in Joshua Tree, CA

Pigeon Forge and surrounding areas (Smokies & Dollywood, etc) also on my short-list.

Looking forward to my call Friday with Julie McCoy Friday to learn more.

Be sure you have user friendly STR rules, a high-demand, destination location and a super cool property that people will want to visit again and again. No need to spend to much. $400k or less can get you something really good in some locations. Also, my suggestion is a 1 story with under 2,000 sq ft. 1.200 sq ft to 1,500 sq ft is the sweet spot - less stuff to break down and lower expenses. Try for 3 beds / 2 ba to max guest capacity. 2/1 can be ok in the right location.

Cheers & good luck !