All Forum Posts by: Garrett Brown

 I agree completely with this sentiment. There is a fine line between design and just plain tacky almost. The market is a huge factor in how far design goes but I feel like every one has tried to "out design" each other recently to where it is almost over the top. The amenities and outdoor space are the bigger draw I have seen. 

I am not in the Arkansas market but I think it and Oklahoma are some of the better markets growing right now. The regulations need to be taken into account but finding a good deal in these markets is easier than most. They are both growing rapidly and expanding their tourism segments. It is one of the markets I have been checking out lately to see if any winners come to my deal desk. 

Hey Ryan! I am a short term rental investor and agent in the Houston, Texas area for over 5 years now. I think the people that have soured on STR's did not expect it to be as much as it requires. With that being said, you can build a successful STR if you win on two fronts (to simplify it)

The real estate side and the hospitality side (operations).

The real estate side is buying a very good deal in a market that has a history of vacation rentals in my opinion. 

There is alot of chatter in Houston about them shutting down STR's but I believe it will go into a paying for a permit phase more realistically. There are a few areas that have long been unrestricted in spots (Heights, Montrose, EADO, etc) that may work. These numbers have risen tremendously though and with interest rates it is harder.

I like your Galveston idea because of the area and the amount of people that will probably be selling as they see it takes way more work than they expected. My concern with Galveston is definitely insurance costs though for you. I would 100% price that out before making a move anywhere there.

I think Lake Conroe and Lake Livingston are two places to check out as things progress in the area. That is where most of my investments are and my smaller experience based cabins crush it compared to my regular SFH that I rent. I think STR is an experience based travel and with the right marketing /design, it can 100% be a viable investment. Be prepared to learn the systems you need and deal with some headaches though compared to other forms of renting. One of my glamping sites brings in around $25,000 a month but we also spend around $15,000-20,000 per month. Insurance, weather related events, and labor costs for cleaning have been a big cost this year for us. We have supplemented our income with plenty of add on packages, local partnerships (jet ski/boat rentals, breweries, restaurants, etc)

I'll jump in to give some insights on what you could do to increase revenue without selling or major renovations. I will just rapid fire them off so if you are curious of me expanding on any, please ask! First some in house questions

1. Do you use a PMS?
2. Do you have social media accounts for the property?
3. Can your cleaners handle more workload such as adding revenue generating packages?
4. What is your biggest expense right now besides mortgage?


My ideas that have worked for me
1. Free and/or paid content creators staying during slow days (Monday-Tuesday)
2. Adding filters on Airbnb that are always targeted (are you pet friendly, do you have alt text on your pictures to hit more categories, maximizing number of beds, certain amenities like sauna/hot tub, etc)
3. Google ads (not free but can be effective when done properly)
4. Social Media Content around the property
5. Email marketing campaigns using companies like Stayfi or your own discount code on your direct booking website
6. Selling additional packages like birthday packages, romantic packages, smores and pizza kits, etc at a 50% revenue point for you (let your cleaners or inspector facilitate it)
7. Using something like Breezeway (or your auto message) to sell an extra night before or after someone has booked at a discount. 
8. Youtube channel for the property that you upload tours for you guests but also will spread out to YouTube watchers.

I can go on for days but I will say losing that amount of money on an STR is tough to swallow. The amount of work and repairs that go into it may never catch up for you if you are maxed out on renovation budget. The smokies have been one of the most over saturated STR markets in the last few years. You could take the equity and build a site with smaller cabins in a new area to really maximize your cashflow and efforts.

As someone with tons of hot tub vs outdoor bath experience in hotter markets (Houston here), I think adding some type of amenity like this crucial. People told me I was an idiot to put a sauna at my mirror house and it CRUSHES. Helps with the slow season and really gives you an amenity to stand out with on social media and OTA's
I think a hot tub is a great idea but the even better idea is an outdoor bathtub /shower with tankless hot water heater. 

1. It can be drained every use (as long as you have an area to drain it properly to so this would be the only hold back) so no chemicals needed or reliance on a Hot Tub maintenance person

2. It can be cold or hot for the guest no matter their preference. 

3. Much cheaper to maintain and on the electric bill

and etc.

I only build cabins in the woods though so again, the drainage would be the issue if you are more in a neighborhood or something. 

I 100% think you should add a hot tub even if it just a plug and play one that is reputable. In hot areas, the plug and plays are used more as mild temp tubs anyways. I have hard wired ones too and they are easier for winter months but that is about what 2-3 months per year?
Just my two cents! I also built a cowboy pool for one of my properties that is more family friendly and it does very well for the price I built it at ($850 total)

Finding a specific STR photographer is always tough. Austin has a few (check out @krisclarkk on IG) but I would go find a few of the bigger cabin or glamping sites to see who they used. There are also bigger STR specific ones that will come to Austin but their fees will be tremendously higher than most local ones (check out @shelbywilray @gcalebjones for examples)

Other commercial investment investment.

Purchase price: $550,000
Cash invested: $200,000

This is my luxury glamping site near Houston, Texas called Cameron Ranch Glamping. We currently have 3 unique structures and are building more on our 11 acres of land.

What made you interested in investing in this type of deal?

I have always wanted to build unique structures using my creativity while also gaining cash flow using my hotel management background. The perfect mix was luxury glamping that I could invest in for short term rental use.

How did you find this deal and how did you negotiate it?

I found the land and main house on the MLS. I am an agent so it was simple to negotiate after being on the market for a while. We knew the land and area were the valuable part when planning on building our cabins for short term rental. These would increase our equity and business value tremendously

How did you finance this deal?

Conventional financing and cash to build our first unit

How did you add value to the deal?

We have added more utilities to the land, build cabins, and will continue to add more value with new cabins.

What was the outcome?

We are holding and will continue to operate this for years to come.

Lessons learned? Challenges?

Save as much as cash as you can because building the units up front is alot of cash flow going out. Get your permitting department on board first as well in your county.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

Just DM Me and we can talk more! :)