All Forum Posts by: Joshua Strickland

Debt Service Coverage Ratio loan is what you need.

@John Robert Kinsella I'm having the same dilemma as I am selling one of my STRs and doing a 1031 exchange this Friday. Do I buy another larger STR or diversify into another asset class? I think there are markers that point both directions for the future STR market.

The good: Fed has increased the money supply by almost $3 trillion since last March. A lot of this extra money in circulation has made its way into the STR market so this could remain for years as just the price of doing business with inflated rates.

The bad: There is no way around supply and demand. Since Covid supply has been severely restrained and demand skyrocketed. As international travel, cruises, and airline restrictions loosen people will start taking those vacation options. Seems to me like there will be a gradual tapering to this though.

My opinion: I think rates will come back down to earth but settle at higher than pre-pandemic levels.

Get a good property management software like hospitable, your porter, hostaway, etc. There are a lot so just pick one to get your automated messaging set up. Also get started on a pricing tool. Pricelabs and beyond pricing are popular and worth their weight in gold. 

@Ken Boone is right. Unless you have one of those classy red heart shaped hot tubs that are in the older cabins. Those are the real money makers! Some of you will know what I’m talking about. Lol

I am a self manager through and through and have no experience with a 3rd party management company in my markets, however I’ve heard Panhandle Getaways is good if you’re in the Florida panhandle market.

With that said if I ever did switch to a management company I’d rely on a smaller local company versus the big ones like Vacasa and Evolve. I’ve stayed in STRs that they managed and seem to always have issues. Full disclosure I’m pretty biased though. Like @John Underwood said, no one will take care of your property as well as you.

Branson seems to be the lowest priced market. All of those are rockstar areas. There’s no perfect answer. Which ever market you’re more drawn to and want to dive in to learn will be best.

I would have stopped analyzing and started critical path items sooner. Until you get on the ride you don’t know what you’re in for. Best to learn by making mistakes. The more those mistakes cost you the better lesson you learn unfortunately.

And have ample reserves just in case.

Most builders will have architects they’ve worked with in the past that they can recommend.

If you’re local just go sit in the county’s building permit office for a few hours and you’ll see a handful of architects coming in and out with plan submissions or revisions that they need to have reviewed for permits.

Bigger properties will have a better ROI if you are only looking at the math side of this business.

Smaller properties will allow you to fail, spread your risk, and learn the business.

I’m just under $200 per square foot not including land acquisition cost