All Forum Posts by: King White

I am looking at building a few speculative homes in the Dallas area and needing to talk to a couple of lenders.  I would pay cash for the existing home then use lender to finance the the demo and construction.  Construction loan amount of $1M to $2M per house.

I am looking for any insight into the valuation or multiple that an operating STR property management company would sell for. This would be for a franchise territory for one metro area type region only. The management agreements with the property owners are 1 year or less and cancellable. It is a franchise so it would be a 10 year type agreement with renewal rights subject to the various fees. Please assume the EBITA/Profit is between $500k to $1M. Appreciate any help.

Does anyone know why the average rental income of STR in Galveston is almost half of what it is in other nearby markets like Port Aransas and south padre island. It is really low given when compared to other beach towns.