All Forum Posts by: Lauren Lockett

Quote from @Patricia Andriolo-Bull:

What others have said. Goals are targets and need to be reevaluated based on where you are. I would slow down and do this one well and definitely dump the PM. 

 Thank you! Dumping the PM is priority and re-evaluation is so important. Thanks Patricia! 

Quote from @Andrew Steffens:

I agree with Rick above.  I'd probably discount a bit further until you get 5-10 5 star reviews then start inching the price up.  That will help get you ranked higher and keep the bookings rolling in.  Good luck and good job!

 Thanks so much Andrew! I will get right on that and consider going a bit further too! Thank you!!

Quote from @Rick Pozos:

Hey @Lauren Lockett as mentioned above, you need plenty of stays for the algorithm to see that you guys are great. That also means plenty of reviews. I know this might sound tough, but maybe until the end of the year, lower your rates for during the week to $200 or $250 per night. Get some traffic. Make sure the day before checkout you let the guests know that you would appreciate a 5 star review of the property. Ask for a great review.

Hey Rick! Thanks so much! I appreciate your honesty - this is exactly what my PM advised so I've dropped my prices as of 2 weeks ago since we've partnered. Of course, I'm disappointed but you're exactly right. And thanks so much for the advice on the reviews - that is something I need to do better on and I've added it to my list! Thank youu!

Quote from @Chance House:

Hi Lauren -

A DSCR loan is very likely your best and most viable option to finance your next door. While others have offered some great strategic advice on timing your next investment, I would add that a good lender is only going to finance a deal that they think will be profitable for you. That is to say, I wouldn't be dissuaded from looking- and would definitely speak with a lender to understand what terms would be available to you.

Thanks Chance! Appreciate the feedback on next steps and would that could realistically look like. I haven't started those conversations yet, but will certainly do that. One thing I hesitate with DSCR loans is (maybe my preconceived idea of them and lack of knowledge) are most of the approved loans with properties that are already short term rentals and show a history of short term rental returns? I typically look for a property that is not an STR first. Either way, I will look more into this to stay open to what's next. Maybe there is something new I can bring to the property!

Quote from @Helen Adeosun:

I'm just getting started myself, Lauren, so I defer to the more experienced and door count heavy investors.

I agree on self managing so you get your margins up and maybe you make it a goal at 4 or more and "stabilization" for the 10-15% property management fee. I'm buying a property a year, but being a little more conscious of financing (FHA, Fannie Mae, seller financing).

When Jeremy says be more conservative in underwriting, I would use AirDNA data (the free version will let you connect your account and measure your property against your market) and assume the worst (a. assume you get less $$ per night, b. assume higher vacancy, assume shorter stays etc.). Also, Airbnb does great marketing but becoming less and less friendly to hosts and taking greater bites of the apple.

STRs are hard to manage and the cashflow seems great but I opt for midterm rentals (MTR) as its less turnover than STR but better cashflow than LTR. I underwrite my property for LTRs just in case we dont get many guests and I have to switch strategies.

I wish you all the best and get creative!

Helen! Thanks so much for your feedback. I wish I reached out in the forum before going with the PM! I will most definitely be dropping the PM asap; per our contract the earliest is November. Your strategy is exactly what I'd like to do of buying a property per year via seller financing and/or FHA. How's it going?

Thanks so much for breaking down the conservative underwriting. I will certainly do that for next time and assume worser circumstances along with adding MTR as a strategy. I had a stay for a week from guys working for the city water system and it went really well - my favorite stay of them all! Thanks a bunch and I'm infusing all these ideas now and it's generating more creative ways I've written down! Thank you again! 

Quote from @Trent Reeve:

a few things. I love the enthusiasm, but i think the goal of 4 STR's in 4 years without a lot of investment money is a bit too ambitious.

And unless you have a great deal or great property in location with little competition, when you first start your chance of making the most money would be through self-management. There are some good property managers on here that are valuable, but for most of us we self manage to keep that 15-20% in our pockets. Also, do you own the listing the PM is using? if you left, do you lose all the reviews on your property?

It's a bit of a game and you have to play it. I might be in the minority, but you need to get your property to show up in algorithms. Get some friends to stay at your place, put in that new property/first guest discount, get people in there and get some reviews. People dont need to stay at a property with 100 reviews, but I would say you are good once you get at least 5-10 reviews. Make sure your exit process with guests encourages them to post review of your property.

 Thank you Trent! My thinking on the 4 in 4 was for financing and timing personally. The way both my jobs and my husband's job is set up he gets a Christmas break that makes it convenient and it for us to both take a few tasks on our acquisition checklist and get through closing/underwriting on the same page. We currently have little time, especially during the work week and he also works weekends with an unpredictable schedule. Another thing was buying each year, ideally, was a fall back plan for buying and living in my next investment to continue buying properties should I not achieve other creative ways of buying properties. I don't mind slowing the process but personally I feel behind, also exhausted from my W2s, but willing to work hard for funding for investments and want to if anything get closer to achieving some more financial freedom options for us to build in breaks and time to spend with our boys. For the groups I met at conferences, I thought one a year was going slow but maybe not. I'm gathering from your feedback the most important part is first ensuring the property is profitable and stable first and that I can definitely agree on and so appreciate this hard truth in what I should do next. 

From what you've shared, the earliest I can drop my vacation PM per our contract is November and can see this is a consensus. I was scared I wasn't getting as many bookings in my busy season and now that it's a slower season was sure I would need help, but now understanding it's the current climate along with I can drop my prices and open my calendar, I will certainly drop the PM as advised. And you're exactly right on owning the listing and reviews. It was my main hesitation in going with a PM but I eventually decided I'd rather earn the income then to continue sitting with an empt(ier) listing and eventually said yes. 

I appreciate your ingenuity! That's exactly what I'll do. I had a friend reach out this weekend and will go for it! Thank you x100 for these ideas! 

Quote from @John Underwood:

So what is your NET income (or projected Net)? Especially after paying for all the training and services you bought.

I would make sure this property is making good money before buying something else that isn't performing like you hoped.

STR's are not performing great in many markets right now, so the timing might not be great for the first property and definitely not good to force a second one right now.

There are markets that are performing better than others but AI keep hearing that many STR owners are struggling right now.

If you are going to buy a second property, make sure you run the numbers and be conservative with them to make sure you have a buffer.

Maybe consider a smaller cheaper property for your next one that appeals to the bargain shoppers and smaller families.

I also love my LTR's that I buy cheap and fix up. It is very good to diversify via different property types, different markets etc.

People always need a place to live but may dial back vacations if there is financial uncertainty in their personal lives.

 Thanks so much John! My projected net income is $32,000. And I will definitely do that and follow through on ensuring this property is good to go before going to the next. I so wanted to stick to my timeline since I feel so behind on my real estate goals, but completely understand the foundational work is important before moving to the next one. In following the forums, I'm understanding what you're saying more and more on the markets right now for short term rentals. 

Ok, I'll be sure to be more flexible in what happens next! I'll also look into LTRs and buying less expensive properties for the next round after getting this property stabilized. Thank you again! 

Quote from @Jeremy Horton:

How much is your STR making currently? What's the ROI like?

I would consider a pause on STR #2 until STR #1 is operating well. It sounds like it is not doing as well as you anticipated. Quality > Quantity. A lot of people seem to have this obsession with door count or AUM - don't be one of those people. Your goal is likely income and overall ROI. The number of doors is really a meaningless metric.

That being said DSCR loans are the most common - but generally the rates/terms will not be as good as a conventional loan. So you need to underwrite even more conservatively. So if #1 is not working as well as you thought with a conventional then #2 would likely be worse with a DSCR loan. When did you buy this property? What's your interest rate?

Have you read "Short Term Rental, Long Term Wealth"? It's a good one, BUT a lot of their STR success hinges on self management. Consider self managing. Look up your vacation spot on AirDNA (if I remember right) and see what the ADR/income is for that area. Then analyze your property against these estimates. 

 Thank you so much for your input Jeremy!! 

It's currently making about $300/night. I could actually probably do a better job of tracking this as well as I still have to pay taxes from that number along with the vacation PM so 15% goes to PM and 13% to STR taxes, so it makes about $244.80 night and averages maayyybe $979/month. Ouch, that hurts to type lol!

I bought the property in December 2024 at a 7% interest rate. This is good to note on the DSCR loan. How do I underwrite more conservatively and what does that look like? Does that look like buying at a lower price point or less rooms? (Sorry, new to this and just want to keep with you!)

Yes I've read that book and really enjoyed it! Even did the STR bootcamp with the authors and other STR hosts. Ok, this is so good to hear, so maybe I go back to self managing? I just felt like I wasn't producing anything and that I should get help hence working with vacation PM for the last 2 weeks. Maybe I just need to wait for another few months for bookings to start going up? Yup, the ADR for this area is higher per AirDNA, but I I haven't looked since this summer and before I purchased. I will go back and do that!

This is such great advice, thank you!!

I wanted to be transparent and share where I’m at in my journey — hoping this helps someone else, and also opens the door for advice and connection.

After a year and a half of analysis paralysis, I finally launched my Texas STR this summer. I put alot into it (and maybe haven't done all I can yet, but still!):

• Purchased with a conventional loan (pretty sure I’m maxed out on financing this way now, especially with little income to show).

• Invested heavily up front: conferences, bootcamps, small groups, professional designer for full setup, studied comps, professional photographer, priced strategically/dynamic pricing.

• I work two jobs (foreclosure auctions + hotel), so hospitality is something I genuinely love and plan to stick with long-term.              

• Goal = 4 STRs in 4 years (buying one each year or so).

The reality so far:

• 1 booking in June, 2 in July, 2 in August — all through Airbnb. (Listed on several sites, but most traffic came through here)

• Just partnered with big Vacation Rental PM last week. Booked each weekend in September, but at $340/night (well below my target for my 5 bedroom amenity packed home) and with my calendar wide open for future events I would have normally raised prices for.

• Honestly, I don’t love the experience with vacation rental PM so far. I was expecting more value for 15% than lower rates + open calendar. 

Where I need advice:

With my little income from the investment property (so far) + personal debt-to-income ratio, I'm pretty sure I'm tapped out for another conventional loan. For those who scaled past property #1 or #2, what creative financing strategies worked best? (Private lenders, partnerships, subject-to, DSCR loans?)

• What has worked best for you when bookings start slow, even with professional design and good reviews? Given the current climate, how do you stay creative or is this something you're used to? Any advice for improving bookings without racing to the bottom on nightly rates?
  

• And longer-term, do you have or know of any STR owner groups (local or virtual) that meet regularly to share referrals, vendors, and support? I'd love to join or even help build one.
  

I want to buy STR #2 this December to stay on track for my 4-in-4 goal. Right now it feels like I'm moving slower than I'd hoped — but I still love hospitality, believe I can get there with the right adjustments and I want to find a sustainable path forward.

Would love to hear your experiences, what’s worked for you, or even hard truths I should consider. And if you’re also building in the STR space, I’d be glad to connect.

—Lauren

Quote from @Jay Hinrichs:

Quote from @Lauren Lockett:

Quote from @Jay Hinrichs:

Quote from @Ashley Price:

I can see if we can get you funded. We fund in 3 days, rates as low as 5%, terms are 3,5,7 years with no prepayment penalty. Let's connect 

these terms are not real.. OP be careful of upfront money and getting taken advantage of.

 If you don't mind my asking, what is OP? I saw it mentioned a few times in the thread

sure its BP jargon for  ORIGINAL POSTER  IE in this case Amarri Persley

 Ohh ok! Thank youu!