All Forum Posts by: John Carbone

Which makes perfect sense with context.  Every techy growth stock is down massively.  Most more on the order of 90% than 50%.

ABNB's P/E ratio is what changed (as did the entire market's with the sentiment shift towards huge P/E ratios), not their earnings.

Their P/E ratio was 127 before, which is obviously insane and was going to adjust alongside all the other mega growth stocks.

 Yes, despite the anecdotes ("my sister's brother's son's 3rd grade teacher said she canceled her vacation because of gas prices"), the data is clear on this and the data back up what you said.

Travel demand is still at record highs.  Travel spending is still at record highs.  Airbnb's earnings, Airdna's reports, etc.  All still at record highs.  But that growth just isn't matching the insane growth we've had in supply.  So even as demand stays high, supply is growing faster, and tipping the supply/demand balance towards supply, whereas it was previously tipped towards demand.

However, that's not to say we won't hit a point economically where demand crashes like in 2008.  Just that we're not there yet.  Maybe we won't get there in this cycle and this supply/demand imbalance (which will correct itself as people move out of the space when they see they aren't getting the hot returns people last year got) will be the worst of it.  Or maybe it's not even the beginning.

Appreciate everyones help, got my hands on the zoning laws, and under the allowed uses for "Commercial 1" it allows Bed and Breakfast establishments, as well as single family homes. Their definition is:

BED AND BREAKFAST: An establishment in a private dwelling that supplies temporary accommodations to overnight guest for a fee. Meals may or may not be provided. Tourist homes and inns are included here.

I'm gonna follow up with the enforcement officer anyway and verify, cause I'm gonna need to pull permits for the well we need to put in and the electrical/construction we need to do inside, but looks like we'll be in the clear no problem.

Let's be clear on this. Some jurisdictions have multiple commercial zoning districts. You have to understand the district you are in. Zoning is divided into different uses within different categories. An apartment building might be allowed in C-1, but not in C-2 or C-3. STR's typical don't have a category necessarily, but when you read the zoning definition of a hotel or motel it is similar. This is how some jurisdictions are prohibiting a STR in residential district because are using the hotel/motel which is a commercial use.

Actually, Realtors have a fiduciary duty to their clients 

https://www.nar.realtor/sites/...

Buffet and Charlie Munger are in party mode currently after the FTX/BlockFi/Gemini crypto crashes.
He said all these crashes happened because people wanna be rich overnight without doing anything. 

Commercial is specifically zoned for operating a business. A short-term rental is a business. If you need to see it in black and white, then go find the zoning code and read it for yourself. I think you've already got your answer.

 This.  We have one homeowner client who's home rents for as much as $600 per night in the summer.  We rented it for a week in mid February last year for $239 per night.  The homeowner called and questioned what our rationale was.  Our job is to generate income for property owners.  $1673 revenue in one week is certainly better than zero.  That cabin rented for over 300 nights last year.  But its success depends a lot on "dynamic" pricing.