All Forum Posts by: Joseph Bafia

I'd recommend going to Airbnb and/or VRBO and search via the map in the surrounding area of LA and see where the pocket of "properties" are located. The drill into those and get a feel for size, rates, occupancies, attractions, etc. Your purchase price point may also be something you'll need to consider so you're not shopping in a great STR market, but can't afford anything in that market. I'm mainly in NC, but since my son moved to LA, I've pursued the CA market.

Best of luck! 

I know this doesn't answer your question directly as I don't have agreat answer for the difference between identical units.  What would be good to track if you're really trying to see if there really is something to that unit or if it's just "statistics" is to do a "reset" and start tracking from say today and do your own scoring average.  If you started with a clean slate, you could see if the a different unit now becomes the "bad" one.  

Could it be worth you reaching out to the guests that gave 4 stars and ask why?  Like "Thanks for staying...thank you for the review...in an effort to improve, can you share why you rated us 4 stars?"  

...and do this for all 4 units on anything that gets 4 stars.  Just a thought.  

I'm under contract at Kure Beach and that will be our first STR on the coast (all our others are mountains). I may be reaching out for advice!

@Tyler Fox

I think it’s great to ask for “opinions” as to what others do, but remember that we are all individuals owning STRs and just stating what we do …although it may not even be right.

I would strongly recommend to do what I did and that's call an actual insurance agent and tell them what you're trying to do. They are the experts. You can even get referrals for agents in your area that work with STR owners.

Everything else is just someone’s suggestion.

(I use foremost)

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $207,000
Cash invested: $43,000

Contributors:
James Overton Winston V, Ryan Howell

This will be my 6th property and 4th STR. Small mountain cabin in Burnsville, NC.

Should make a great vacation rental!

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

Had success with our other STRs and have some strong systems in place. Looked for something that was geared towards a couple or small family. Good price point in a hot market.

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

A terrific agent (Ryan Howell) helped me find it on MLS. We offered on it 3 separate times and it wasn't until the 3rd time that we actually got our offer accepted. Also got some insight from a fellow BPer that I've connected with who's in that market already to advise on pricepoint.

How did you finance this deal?

First time using an asset based lender. I've financed all sorts of ways and this was a fairly smooth transaction.

How did you add value to the deal?

Automating several processes, incorporating technology (like keyless wifi door locks), and self-managing. We'll upgrade a few things, but much of the furniture came with it.

What was the outcome?

Just got it, so next steps are to clean, organize and then list. No outcome yet, but looking forward to seeing what it can do!

Lessons learned? Challenges?

Learned that it's ok to offer and purchase without seeing a property. Have a good realtor who knows what you want, and they can be your eyes. Learned that building a network of business people (and friends) who can share ideas and resources also takes pressure off. Challenge was appraisals in rural areas are slooooow, but we got it done.

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

Oh yeah.
Ryan Howell - Agent
Tyler Knoll - Visio Lending
Bob Zink - Insurance Agent

Take a look at lenders that don't consider your DTI or credit score. Several asset based lenders out there (I'm using one to close this week actually). Not sure of your personal financial situation as to a W2 job or other income, but it can be done.

I'm actually under contract to purchase a place north of you in CA. I live in NC, but my son moved out there so we're trying to grow our STR footprint. Happy to help answer any questions.

I agree with @Joe Prillaman.  One of my last STRs was owner financed and the SELLER wanted it that way and asked me if I'd consider it that way.  Worked out great for me and seller.  I ask nearly every seller if they would consider it as many may already be leaning that way.

My agent is not afraid to ask listing agent/seller if they would consider.

Closing on my first deal with Visio this week.  SO far so good.  Fairly straightfoward and simple process.

Hope to do more with them!

Good luck!

Congrats!!!  How did you find the deal?  Oak Island is where I'd like to go next as we have several STRs in Western NC, and would like to diversify and go towards coast now.

ANy recommendation on real estate agent or your method for finding it?

Happy to help answer any questions related to setting up and managing STRs.

Joe

I'm in Mars Hill and 45 mins north of Asheville.  ALso have one under contract in Burnsville, NC.  HAppy to connect and swap stories!

Its a good time to mention that this also skews AirDNA stats as well, so those that try and model or analyze using that should be aware that it takes rates like this into account too.  A big reason why I'll just do my own research of rates in a given area by peeking at calendars of others.