All Forum Posts by: Michael Baum

I never considered management. It would kill my profitability and I enjoy interacting with the guests. Making sure they have a great time. 

Just read the forum! Lot's of experts in many areas around the country who provide info for free!

Hey @Jae Jun, if you aren't taking all of those things into account, then you are setting yourself up for failure.

Relying on COC only is a mistake but a good baseline.

Frankly not everyone will take all of these things into account. Gross Yield? Can be variable. Tax benefits? Important but not to all. ROI, always important. FCF? Tied to CoC and ROI really.

Risk level is one of the most flexible things on the list. Everyone has a different level of risk tolerance. Impossible to use what one person's risk level is to base what another's should be.

ROE is tougher. I always look at that as the end game. ROE is complex IMHO. When does the ROE look better than the COC?

Often times it makes sense to sell a performing STR if the value has skyrocketed. In the end it is a crap shoot. Do you sell the property to reinvest in something that might have a better return to take advantage of the increase in equity?

Could you buy something that performs as well?

I will say that in our case, I couldn't buy another property that performs as well as our lake house even though the value of the house has increased over 400% since we bought it.

The ROE isn't good, but I don't use that as my reason to sell it. My daily rates and ROI don't go up at the same level as the rise in value so if you own a property for a long time, your ROE will continue to drop but that doesn't mean it is a bad investment.

There is a lot to unpack in that list and I could go on forever on it.

Dollywood has been named the number one amusement park in the USA by Trip Advisor!

Hopefully it will help drive more traffic to the area!

https://people.com/dollywood-ranked-best-theme-park-above-di...

Hey @Alicia Larkin, I haven't seen anything for over a year.

I used to be on the panel and managed the forums but haven't for quite a while.

Turno. You will get a ton of bids.

Hey @Matthew Lamoreaux, I can see that being a thing.

I used to travel to shows regularly. I was in charge of some huge booths at tech shows. Our company had us all booked at the local hotels but I could see using a STR instead.

The biggest thing I would want to do is make sure the local convention center has enough events and shows to support a STR. Often there are only one or 2 big shows (if that).

Vegas of course has a TON of events and shows, but restrictions on STRs keep that from being viable IMHO.

Hey @Elaine Perales. So this is kinda weird. 

This would be common for a "normal" business like a retail store or the like, but when you are dealing with a real estate business featuring STRs, things are different.

In the end, the house is worth what the comps say it is worth. The rest of the business...hard to analyze that. There are 200+ reviews, ok, what else is there? 

Technically the reviews can't transfer and both VRBO and AirBNB might not allow it even if the LLC stays the same. The LLC will transfer to new owners so that might trigger them to force you to start over so I wouldn't rely on that at all.

IMHO, the business side is worthless. The value is in the property. If they are charging you a premium, then I would pass. There is a reason they are doing it this way. They might want more money than it is worth and know it won't appraise at the value they want. 

The bottom line is that past performance is no indication of future earnings. You aren't buying a McDonald's.

I would pass.

Hey @Marc Shin, yeah that assumable mortgage is a real attractant but seeing as that has been out there for 80 days, they must be some kind of issue.

You don't state where it is located so there is no way to know if the market is soft there or ?

Are you familiar with the area? It might be a neighborhood in transition and is a C- type of place, neighbors could simply be a big pile of suck, or a million other things.

This would be a pass for me. It sounds like it has very little going for other than the assumable.  

The people I know that use Pricelabs are pretty happy with it. One person had a bit of a learning curve to get it working like they wanted but that is an individual issue.