All Forum Posts by: Jeremy England
Jeremy England has started 22 posts and replied 296 times.
Post: How many STR do you have and what have you learned in your journey?
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Quote from @Drew Smith:
3 - Gulf Shores (AL), Orange Beach (AL), Pigeon Forge (TN)
Agree wholeheartedly with the above advice on just jumping in. You will learn soooo much more once you get into the weeds on setting up your property, guest/cleaner communication, etc.
A couple nuggets:
I'm glad we purchased a smaller cabin in the market that I didn't know (great smoky mountains) as it's occupancy is much higher and I have a pretty good idea of what income will be each month.
Our 2nd beach condo is across the street from the beach without beach access (you have to drive or walk .25 a mile). I wish we would've saved up and bought directly on the beach. Our 1st is directly on and it crushes.
How did you purchase 3? Like what kind of financing? Down payment? Or did you pay cash? Congratulations on your success
Post: STR Smoky Mountains
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Quote from @Brittany Stradling:
Quote from @Jeremy England:
I saw this and wanted to ask how its going? Are you getting the income you thought you would? Any unforeseen expenses?
People are being pretty respectful of the space. No crazy expenses, but it is an older space and needs renovated so my cleaner keeps me updated with what needs to be done which feels pretty frequent. My occupancy is great. Income is nice but a little under what I expected. I need to work on my pricing a bit but I get nervous because of the airbnb and bust noise in the news. I'm still unsure of how high I can charge without it impacting my occupancy rate. I was told charge lower and increase prices as I get more reviews, so I'm not too upset about the income being lower than expected.
Thanks. It is quite expensive. I want to purchase one, i have the same concerns you do.
Is this your first str? Any books you would recommend on the topic?
Post: STR Smoky Mountains
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
I saw this and wanted to ask how its going? Are you getting the income you thought you would? Any unforeseen expenses?
Post: smoky mountains cabin
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
which city in east tn? How did you find the deal?
Post: Smoky Mountain STR (3rd investment, 1st STR)
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
What did your 2022 numbers look like? Ive heard from others vacancies going up
Post: Deal of a lifetime - Bought from ailing elderly neighbor
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Sounds like an unethical deal. Her family will probably take legal action. I would.
Post: Blue Ridge experience?
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Ive also been looking in Blue Ridge. Pricing seems to have appreciated even more than other markets. Like 300 pct increases from 2019-2020
Although from what i can tell they are coming down. But will they come down enough to make it a good investment? Time will tell
Post: Average Home Builder Commission?
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
A gc can be a home builder. But a home builder cant be a gc. Depending on which state you are talking about. In the REI space they use the term GC synonymously with builder.
A gc can build apartments or commercial buildings. But a home builder can only do sf or small multi fam
Some states have very little Requirements to get a builders license. Others have strict requirements like Florida.
Kb homes is a production builder. They arent any different from Any other licensed builder just do alot more homes at once
Post: Average Home Builder Commission?
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Quote from @Mike Smith:
@Account Closed That's a good question. My opinion is pretty close to @Jeremy England and @Bruce Woodruff. I don't share the opinion of @Scott Mac but there are many builders that do.
There are two different ways to build homes cost structure and thus two different markups.
1. Cost plus - markup is typically between 10% and 20%, as the builder doesn't have the risk of price volatility with materials and labor, or the risk of mistakes in estimating. It's closer to 10% on very large projects and when the housing market is down. It's closer to 20% on smaller projects or when the housing market is hot.
2. Fixed price - builders normally estimate in more markup because they are absorbing the risk of rising prices and mistakes in estimating. The gross markup is closer to 25% on average, but remember builders overhead typically runs between 15-20%, so they are hoping to net profit 5-10%.
I normally always recommend fixed price contracts, otherwise the builder has not incentive to try to reduce material and labor costs. Cost plus contracts usually only happen for projects that are very difficult to define an accurate specification sheet ahead of time. For example, building a 5m cabin in Jackson, Wyoming on a sloped lot.
I partnered with an investor group back when i was building and did a few homes. It was a 50/50 split of the profits. Cost plus contract. Back then typical profits were in the 45k-50k per house range. For around 2000 sf homes in south alabama. Builds took from 4-5 months on average. Built 3 houses at once. So when the houses sold it was a good payday. No money in between however. Took some finesse to not get paid for 6 months or so.
Post: Average Home Builder Commission?
- Contractor
- Pensacola, FL
- Posts 299
- Votes 152
Quote from @Sebastian Marroquin:
The other way would be for you to get your own subs and do a an owner build. (much riskier but you could do it for 75% the price above).
At least in the 2 states ive built homes in an owner builder could only build his personal residence. Not investment property or second home