All Forum Posts by: Gerald Pitts
Gerald Pitts has started 11 posts and replied 460 times.
Post: What's your preferred dynamic pricing engine?
- Lender
- Asheville NC
- Posts 466
- Votes 317
Quote from @Kevin Luttrell:
Quote from @Gerald Pitts:
Quote from @Kevin Luttrell:
I've been using Wheelhouse for my STR and am thinking about switching. They've been fine, but apparently I need to pay for an additional subscription if I want to add Tripadvisor and have Wheelhouse push pricing to them. Seems like Price Labs can push pricing to different platforms for only an additional $1/mo.
Has anyone used more than 1 dynamic pricing system and prefer one over the other?
Thanks Gerald, I've also seen most STR investors on here who use dynamic pricing use Price Labs. I haven't seen much about any others though, hoping someone here has used more than 1 to compare them.
I started with beyond pricing, but didn't have it long enough to speak on rather than I preferred Pricelabs due to the flat fee vs percentage of gross. Also used a listing optimization service, who recommended Pricelabs, and PL tutorial, so I switched pretty quick.
My friend made the same switch when he saw how much more I was pricing mine (and still booking) than his property.
Post: Furnishing STR's and how it can be easier.
- Lender
- Asheville NC
- Posts 466
- Votes 317
Quote from @Thomas Dempsey:
Between the on-going debates about STR restrictions and the everyday hassle of keeping track of the property, getting into the STR game is becoming increasingly difficult.
If you have already set up an STR on your own, how did this go and what services were you able to find to help the process become smoother?
I prefer buying in vacation rental communities to mitigate risk of STR regulation hassle. Another great plus is that a majority of the properties are already furnished. I can get it up and renting and let cash flow pay for furniture updates. Another plus is infrastructure is already setup in the area for all this stuff. You can pay a local company to do interior design, and furnish. Or use a company like Modsy to design, and provide purchasing links.
Post: What's your preferred dynamic pricing engine?
- Lender
- Asheville NC
- Posts 466
- Votes 317
Quote from @Kevin Luttrell:
I've been using Wheelhouse for my STR and am thinking about switching. They've been fine, but apparently I need to pay for an additional subscription if I want to add Tripadvisor and have Wheelhouse push pricing to them. Seems like Price Labs can push pricing to different platforms for only an additional $1/mo.
Has anyone used more than 1 dynamic pricing system and prefer one over the other?
Post: Use HELOC for STR down payment?
- Lender
- Asheville NC
- Posts 466
- Votes 317
This is exactly how I got started, and it has proven to be critical to me getting in the game, and gaining momentum. Just watch the variable rates that might be crazy right now. You might also consider private money, and just pay that back asap.
Post: Any experience in underwriting an inn/motel? Tips to share?
- Lender
- Asheville NC
- Posts 466
- Votes 317
No advice, but following along, and cheering you on haha. An inn is one of my goals as well.
Post: Purchasing a cabin as a STR
- Lender
- Asheville NC
- Posts 466
- Votes 317
I am a fan of scaling as quickly as possible, and letting guests pay down the mortgage. And even then, harvesting equity (refi / pulling out cash) here and there to pay for add'l properties. As long as I have healthy reserves.
Some like to pay off mortgages of some of their properties for some piece of mind. Since your wife maybe prefers this, maybe run a side by side comparison of paying off vs scaling quicker that you can both study. Sometimes I have trouble with just the math of it all until I do this. It also helps take some of the emotion out of it.
Post: Does the threat of regulation make STRs too risky?
- Lender
- Asheville NC
- Posts 466
- Votes 317
Hard pass. It's too easy to do this from a distance vs forcing it in the city where you live. I try to invest where regulations have already been established and where the town depends on the tourism dollars that STRs bring.
Post: DSCR Loan for STR Properties
- Lender
- Asheville NC
- Posts 466
- Votes 317
Just a rumor, but I think 15% is done right now. If anyone knows different, please let me know. 🙂
Post: Help me understand AirDNA occupancy rates
- Lender
- Asheville NC
- Posts 466
- Votes 317
Quote from @Bruce Lynn:
Also understand occupancy is often a function of the rate. Raise the rate, lower the occupancy, lower the rate, more heads in beds.
Seems like the sweet spot for airlines and big hotels is somewhere between 70-80%. Hit that and they're profitable, lower than that, they're loosing money.
There are different philosophies on this though.....some people want it full every night.....some people would like quality over quantity, or minimum stays to reduce turnover or to attract a different kind of guest.
Agree with Bruce. Think revenue over occupancy.
you can charge $1 a night, and have 100% occupancy for the year and make $365. You want that sweet spot where you get quality guests that will pay a premium. Less headache for the money.
Post: Strategy for STR investment
- Lender
- Asheville NC
- Posts 466
- Votes 317
Quote from @John M.:
Quote from @James Alderman:
@John M. you'll need a management company that specializes in full-service STR management, which should include pricing strategies, guest communication, etc. There are some services like Evolve (https://evolve.com/real-estate...) that can help you find a home to purchase then manage it for you.
The returns are way less from Evolve and Vacasa from my understanding. Beyond the cut that they take.
If you can't self manage (a few hours a week work with software automation), I would look into co-hosting or a V.A.