All Forum Posts by: Leslie Anne Morris

Leslie Anne Morris has started 3 posts and replied 1252 times.

Check out the competition and see what they are charging at various times throughout the year, then implement a dynamic pricing strategy based on what you learn during your due diligence.

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A robust PMS system, I use Ownerrez. This is the biggest system you'll need. Several bolt on's can be used to automate doorlocks, pricing strategy, marketing, guest communication, etc. Most are determined after you choose your PMS.

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San Diego, California

Quote from @John Carbone:

Quote from @Leslie Anne Morris:

Quote from @John Carbone:

Quote from @Leslie Anne Morris:

Quote from @John Carbone:

Quote from @Leslie Anne Morris:

I don’t underwrite my deals like that, or see any sort of statistics based on multipliers as an agent. I know what you’re talking about, but it’s going to be really hard in the current market to do that. Everything seems to be super deal specific and underwritten individually to check profitability.

Isn't the rental income the only driver in determining profitability for a cash buyer? As long as there's no HOA the costs are pretty fixed for carrying costs for a turn key property, If two properties were listed for sale with same rental revenues why would they trade at different prices? Are we no longer seeing bottom line investors or is it shifting to more retail wanting to have a vacation home.

It depends on the investor and what their goals are. The problem is you can't go on historical rent and projections are tough these days also. I work with bottom line investors and folks wanting a vacation home.

So it sounds like there is still a gross rental multiple that applies, but it now requires more validation to confirm the numbers will continue to produce. While I agree that historical and future projections are more difficult now, the underlying component of “how much will this cabin generate” now and into the future relative to the cost to purchase (ie. A rental multiple) seems to still apply, it’s just not like it was in 2021 where deal comes across, rent roll checks out, done. Surely people are underwriting deals with a gross rental multiple in mind as a baseline even in this market.

I'm not. Personally, I am still doing what I've always done which is net operating income and cash on cash.

What is the cash on cash threshold for a million dollar property for a cash buyer that you are seeing? Generally speaking, a 10 percent cash on cash will equate to an 8x gross rental multiple with no financing (in the smokies.)

Looking at current prices now, I don't see any way someone is getting double digit COC unless it's a second home 10 percent down, but even those became very strict with a lot of origination points. Investment loans are close to 10 percent, seems like it has to be cash buyers now, and are they willing to take on risk of 10 percent returns when they can get 5 percent risk free in 6 month t-bills?

Yep, agree with you on the t-bills. I mostly work with junior, newer investors...not many cash buyers in my buyer pool.

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