All Forum Posts by: Mel Adams

I agree with using enemy method and Airdna. You can also try reaching out to hosts in FB groups to get their input. It's harder to get concrete numbers for STRs compared to LTRs. Before I started with my STR, I heard someone say you have to be more tolerable of a spreadsheet that isn't perfect, and not every number/measurable is going to run perfectly from month to month. I'm in month 5 of mine and I'm learning I'm not as tolerable as I thought I was lol.

I’d also add that when you’re running your calculations, use bottom end projections (occupancy and nightly rates) to see if you’re comfortable with what the numbers come out to. For example, run it at 30-40% occupancy. It’s okay to lose money in “off season” months if you’re confident you’ll make up for it in other months (you’ll be measuring profitability annually anyways). That seems to be the case for a lot of hosts in Florida. Slower in winter months, but more than make up for it in summer months. You just have to decide what your risk tolerance is, I don’t think there’s a perfect way to analyze a STR. Hope this helps!

@Wesley I. hey Wesley! Our next meeting will be May 15th at Duckfoot Brewing in Miramar. If you have an Instagram, follow me @mel_invests …I post meeting reminders and updates! Hope to see you there!! 

Hey Adam - I used a second home loan for my short term rental. I told my lender that was my intention, she told me the can’s and cannot’s, and I was good to go. 

The amount of days you’d need to stay in the property during the year really depends on the lender. I’ve heard 14 days, 10% of booked days, and my lender said “some time.” This part seems to be the most varied. 

Definitely reach out to several different lenders and see what info you get back. Feel free to message me if you have any other specific questions on it. Hope this helps! 

Hey JD - I used a second home loan for my STR. You can use it as a STR no problem, you don't need to lie to your lender about it. If you have a lender that says you can't, find a new lender. You cannot however do traditional 1 year leases using a second home loan.

My lender said I’d only need to stay at the property for “some time” during the year. I clarified by asking if it needed to be 14 days, 10% of booked days, any specific number, etc, she said no. This part specifically is extremely dependent on the lender you use. 

Lenders have a million different takes on this type of loan, so I’d take everything with a grain of salt until you’re able to talk to one :) hope this helps! 

Hey Simon - I’d check two things right off the bat.

Go to Airbnb/VRBO as if you were looking to book a stay and set the filters to search for 1 or 2 guests. See how many studios (if any) come up, what they’re charging, and how booked they are by checking their calendar. That should give you a pretty good idea. If there are no studios, I’d be a little wary unless you know for sure your demographic will be solo travelers, couples, or people working remotely. 

You can also go to Airdna, and I think it’ll let you put in the number of bedrooms so you can get an estimate on what your gross income would be for a property of that size. 

More about the demographic that visits Branson - is it solo travelers or couples? Would you be able to price low enough to the point where those people would choose yours over maybe a one bedroom with more space, or even two bedroom property? Are the location of the studios far better than other properties? Just thinking of how else you’d be able to get a leg up. I’m not very familiar with Branson, but those are the questions I’d ask myself. Hope this helps! 

Hi Bo! @Lance Trezona and I host a casual meetup the third Sunday of every month with other local investors. Message me if you’re interested and I’ll send the details! 

1. Hey Justin! Here’s my opinion on each point you mentioned:
2. 1) Airdna is a good starting point, but don’t solely base your numbers off it. Start with that, but then start going through all the Airbnb and VRBO listings in your area to see what they’re pricing at. You’ll start to get a sense of what to price yours at and occupancy. 
   
   
3. 2) don't get carried away with the niche stuff, it can really be a waste of money in terms of ROI. Furnish your property based on the demographic of who'll be visiting and in line with other listings. Guests want a clean, functional, well-stocked, comfortable stay. Someone else mentioned this as well, but local antique stores and thrift stores and Facebook marketplace have great, unique finds that can add a lot of character to your property without spending exorbitant amounts of money.
   
4. 3) Join facebook groups as well. If you're buying in a popular STR market it'll be more helpful and less time intensive than reaching out to hosts.
5. 4) Most people will measure STR profitability on an annual basis, not monthly, because almost all markets are seasonal. I personally want a 20% ROI. Make sure you're including all other expenses in addition to your PITI like utilities, incidentals, restocking, capex, pest control, etc.
   

Hope this helps! 

If the condition it’s in now stacks up with other STRs in your area I’d wait. 

On the other hand, if it’s going to look the most outdated or lack amenities compared to your competition, either price it appropriately or rehab it now. 

The photos look good, but I would organize them differently so they “flow” better. Order them as if the person booking was walking through your house room by room so they can get a feel for what it’ll be like and the layout. For example, in one of the bedroom photos your caption mentioned it has an en suite bathroom, but then the next picture wasn’t of the bathroom. It just made it a little confusing, but an easy fix. I think it looks good though, and love the outdoor photos!