All Forum Posts by: Garrett Kroll

As STR markets evolve and prices continue to climb, I was curious what criteria folks ares using to decide to make an offer or not. Not specifically talking about market requirements, but more for the property itself. What are your minimum requirements, and have they changed in the last 6 months?

I'll share mine:

- Target CoC of 25%+, 35%+ if a partner deal. This doesn't include PM as we self-manage (we plan to hire a PM once we hit our desired scale)

- Cash flow of $2k

- Break even occupancy (i.e. CoC of 0%) is half of the target occupancy or lower. This is essentially a buffer for error/reduced demand/the unknown. It's a new metric I'm tracking and helps me feel better about high purchase prices.

There are some additional qualitative requirements but from a pure numbers perspective, this is it. Curious what you all are using!

Time in the market > timing the market 

I’d consider the middle option as well - finding a place in good condition, only in need of cosmetic upgrades, and unfurnished.

Because this is hospitality, good interior design and furnishings can be an amazing differentiator with super charged ROI. I personally shy away from turnkey b/c I'd be paying a premium for a standard experience, that is most likely not targeted to a specific guest persona. While there are exceptions for some turn keys, that could make it hard to differentiate in a competitive STR market.

@Jeff Gold correct 

Only one of our properties has been live (for a month) and the other will be live in January so I don’t have much personal data to share. Based on my market analysis, the booking history from a previous owner, and the occupancy we’re seeing initially, we expect to see $2k-$2.4K in cash flow on average for our condos, which we self manage. Purchase prices have been $415k and $515k. 

Appreciation is a huge plus in this market as well, like many mountain communities out west. 

Grabbing a SFH with a 2 acre lot and building an ADU later feels like a great strategy considering the views and demand in the valley.

@Jeff Gold Yep. Both of our places are in Driggs to be closer to Targhee, but Victor's proximity to Jackson has it's own appeal. 

We just picked up our second property in Teton Valley, ID and think it’s a terrific mountain market.

Mountain Views - Yes! million dollar views of the Tetons. 

2.Rentable nearly all year round - Mostly. With the exception of October and November, Grand Targhee Resort, and even Jackson, are big draws in the winter for skiing.

3.Relatively close to an airport <1.5 hours - Yes! Jackson Hole is 45 minutes and Idaho Falls is a about 1 hour and 15 minutes. 

4.No Crazy overpriced markets - Relative to Jackson nearby, this is a very reasonable market. But it's a mountain community in the West so a good SFH will be 600-700k minimum.

5.Local government support - Yes!

Hey @Caten Murphy did you ever pull the trigger on this property? I've been curious about this same strategy and would love to hear how things went!