All Forum Posts by: Ray Williams

Curious , but at the same time a lot of plans laid out. First time parents, start-ups, the FTB credit, that is a lot of cheese being spent there. We all know the FTB credit would be great, and ultimately what that means for home prices is not they come down, right?

I agree w/ Travis. Pick one, but pull the trigger. Define your motives, and run with it. 

Definitely a starting place. Great to meet you. 

Not specific to Blue Ridge, but in CO I just used Steadily as they were able to cover the brush fire restrictions I found that stopped Proper and others. 

 Andrew - Interesting although I would say AirDnA doesn't have accurate data from my personal properties. It has led to opportunity (to acquire) with the inaccuracy of the rev calc as we have seen performance vary from what they show. However, underwriting the property is always something I would do outside the platform data alone. Thanks for sharing what you are experiencing. 

Check with Steadily. We are in an area where brush fire complicates insuring the STRs so Steadily is who I worked with on my last one and it has STR coverage.

I agree. Although for me I go a bit macro. I just use occupied nights/365 and account for vacancy to include any reason it is not pulling in revenue. It seems the Occ% would be higher with off market/owner nights deducted. 

Not knowing details, smells like loan fraud with a straw buyer. Your best bet is to understand what FHA is and is not.

It depends. Honestly. What is your equity position? Do you have the financial capacity to absorb payments while you get the STR optimized? HELOCs are based off Prime + a margin. We are at the top of the current rate cycle, so this is a healthy time to analyze if it makes sense for you. As once they start reducing the Fed Funds rate, prime will come down and so will interest costs on HELOCs. You'll want to learn about the ins/outs of any HELOC you take as they are not built the same. As example credit unions can be great, though I have had many clients where the payment is 1% of the borrowed amount. I see this as a disadvantage. I like 30 year terms, with 10 year interest only, and 20 year repay. I can use it, then refinance it down the line. Hope this helps to begin for you.

I view STR as a long game. So if this helps let me know. The example I will give we have now owned 10 years this fall. We bought a home in a ski resort town. So yes timing turned out to be critical, as now those permits are like pinky rings. We have gone from self-management to professionally managed by a luxury focused STR team. For the acquisition I originally sought to cover the note, knowing we would use it. Since that time, it is Top 1% in the sub-market, occ% is just about 75%, and avg ANR >$600/nt. Longer-Term goal- Absorb appreciation, pay off note, reinvest to maintain Top1%, and use cash flow to grow wealth. We have recently used appreciation for another acquisition.

For us there is a balancing act of improvements for guest experience, with functional improvements. I always view the asset as something we will need to put money into. And with a hospitality focus on STR there is a monthly spend on consumables. We have migrated into adding a new property in the last 60 days and will look to replicate what we are doing, in a new submarket with one simple goal- crush the competition and help create memories.