All Forum Posts by: Ken Latchers

originally posted by @Jeff Dzado:

The short version, with direct questions: I've started analyzing vacation STRs in different areas of Washington state. My efforts are primarily focused in areas near the Hood Canal. I'm really struggling to come up with reasonable occupancy rates as inputs to my spreadsheet models. What data sources can I trust so I can more reliably narrow down my criteria and underwrite a deal? How can I learn what variables are important (Is it views? Is it a specific location name? Is it purely marketing prowess?)? How do you underwrite your first vacation STR with so many unknowns?

The long version w/confusing information and a small bit of rambling/trying to process:
I spoke with a STR company, and they suggest some parts of the area, a 1 bed/1 bath cabin: Situation A, have 15% occupancy off-peak, and 50-70% occupancy during a 4 month peak. A realtor I met with (not too familiar with STRs) sold a property recently in Situation A which had revenue which lines up nearly exactly with this occupancy rate. I recently stayed at a slightly different 1 bed property which is ~30 minutes from the area and closer to 'normal' civilization, Situation B, (with amazing views), and the owner said he has a 6 month peak of 100% occupancy and 50% occupancy the rest of the year.

I've looked at AirDNA, which I've recently learned about, and the free views claim that that rentals in Situation A have 50%+ occupancy rate, resulting in nearly 2x the revenue I would expect from from the information from the management company in the area. 

One piece of information says a $150k property won't cash flow. Another says that I can pay $300k+ for the same property. And if I can learn the variables from Situation B that result in their high occupancy, can I apply them to Situation A and pay $450k+? 

nothing you have read over the last few years about vacation rentals can be counted on for the next few years.

What if there is no vaccine? What if we have Wave 3 and wave 6 and wave 10 and your properties are chronically shut down but your expenses are not?

b) I disagree with those who think you can just load up with a few vacation rentals sprinkled around the world. Especially if you don't have a lot of experience. Coronavirus. The days of just getting cleaners and counting on them going in and taking care of everything may be past. It is much more complicated now. Is much more unpredictable now.

c) try this scenario. If you're new to Vacation Rentals, you start getting a couple in a couple of areas and then things go wrong and it doesn't work the way you thought and then you get into financial difficulties you did not possibly anticipate.

go see the world? What if you have to go see your bankruptcy lawyer in 3 years?

Originally posted by @Craig Lillard:

Hi! New member here. My wife and I are ready to go see the world a bit and I have pondered this strategy. Would love some feedback. What I was thinking we might do is choose an area of the country we want to spend some time in. Go there and buy a vacation property. Possibly one that could use some work.

Stay as long as we want and fix it up and when ready, start renting it out as a vacation property and move somewhere else and repeat. Would have to find a property manager of some sort to manage it.

So, in 4-5 years we would build up a small portfolio of properties in places we like and would like to return to.

My current business would allow me the ability to do this, so there isn’t anything holding me back from that perspective. Just wondering if there is some flaw in my plan I’m not considering.

Thanks!