All Forum Posts by: Ryan Moyer
Ryan Moyer has started 11 posts and replied 904 times.
Post: Last chance to buy an STR investment in Wheat Ridge
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
What are the numbers looking like now? In the case study you posted you mentioned the case study only encompassed the high season and the highest high season ever. How are things looking now that travel is leveling off a bit and interest rates are much higher?
Post: Is anyone still buying STVR's
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Quote from @Andrew Simms:
Quote from @Michael Baum:
Yeah @Jeremy Horton, I am not going to agree with some of what you said.
Regarding cleaning fees, I don't work that into my expenses seeing as it is a pass through cost. I am fairly certain that every STR owner passes through the cleaning costs so the guests pay it. The only time would be if you have no cleaning fee and put the charge in the nightly rate. 7-8k a year in cleaning fees is really high. Our 4/3 2700sqft costs about $3300 a year in cleaning that the guests pay for. Cleaning supplies are less than $200 a year.
I don't disagree with the cashflow on 650 vs 350. Hard to argue with that math.
I don't think most STR owners are so ignorant of the math as you think.
Yea $3300/yr is insane. I have individual months where I get near that with some of my properties. They must either be cleaning it themselves or have very low occupancy.
Post: Scaling from STRs to Boutique Hotels... (+80 STR doors in 1 year)
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Well done!
Are you able to manage these remotely like STRs or does it require more onsite attention to operate?
Post: STR accounting software
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Quote from @JD Martin:
I'm going to just devil's advocate here and suggest you keep running with Excel (or Libre, the free version of Excel) for several reasons:
1. No/virtually no cost.
2. Easily delivered to someone else if necessary.
3. No learning curve.
4. You are interested in economical.
Instead, perhaps take an intermediate/advanced Excel course to unlock a lot of what Excel can do. I've used QB for years at my "day" job and it's almost as simple and intuitive as you can get and pretty cheap and it's still going to cost you some money. I run more units than you have on Excel and while it's a little more involved with my (only) STR than my LTRs it's not bad at all.
Everything with tracking depends on the inputs. There's no getting around inputs whether you do it in a simple spreadsheet or in an off-the-shelf or custom software package. Maybe what you need is a little help on the input side of things so that you can spend more time in the analytics?
Anyways, just a suggestion. I've gone the software route on many things in the past and most of them were just trading one set of difficulties for another.
If you use Excel how do you attach the actual receipts to each expense, in the case that your audited?
Post: Is anyone still buying STVR's
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Covers the mortgage/expenses or cash flows well over it? Running an STR is a lot of work and a lot of money out of pocket to just break even.
If that market is just breaking even then maybe that's why. Seems there are still buyers in markets that are still producing nice cash flow.
Post: Anyone have experience investing Lake Havasu City AZ?
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Purely anecdotal, as I haven't actually researched the market, but feels like in my FB groups this one was hot during covid and now people are panicking as supply has gone way up there and demand returning back to normal.
Post: Buying the dip, Is it too soon?
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Quote from @Simon Ashbaugh:
Quote from @Jeremy Horton:
@Simon Ashbaugh
Well the Fed has literally told us interest rates will go up. So my bet is they will go up. That's the primary reason housing prices have gone down lately...because demand is down...due to interest rates. The supply didn't change. The demand only changed because of rates, and demand moves much faster than supply
For sure, that's why i'd say to buy now before it hits 10, 11, 12 %
It may go up to those numbers, but it won't necessarily, right? I don't exactly know how all these things work, but haven't fixed rate lenders essentially already priced those future rate increases into their current rates?
My adjustable HELOC rate, which is based on prime, is still 2 points lower than fixed mortgage rates. Fixed rates are well above prime already. I would assume a big part of that is because they know the fed has said they'll raise more, so they're getting out ahead of it and pricing those into their fixed rates already.
I could be totally wrong on that, but that's mostly how it worked earlier this year. The Fed raised 1.5pts and fixed rates shot up from 3% to 6% (more than 1.5pts) because the fed said they'd raise more. Then the fed raised a couple more times and the rates stayed pretty steady around 6% (those raises were already priced in). It wasn't until the fed said they weren't done and that they were going to raise at least 3-4 more times that rates shot up again.
Post: Buying the dip, Is it too soon?
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Quote from @Steve K.:
The market will hit bottom on February 18th, 2023, at 5:12pm EST. Don't bother doing any underwriting, making any offers or negotiating on anything until then, and only then.
I'm thinking February 30th seems more likely.
Post: First Time STR Buyer Questions
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Can your realtor filter things out for you based on the HOA costs and hidden fees?
Otherwise I'm not sure there's much to do other than put your head down and keep at it. For most of us every deal we've bought required plenty of tedious work at the computer and had plenty of deals that we thought looked great only to find there was something hidden underneath upon further inspection.
I wouldn't worry too much about always avoiding HOA. That works for some people but there are plenty of people around here doing well with STRs in an HOA, especially HOA's designed specifically to embrace and support STR like many beach condos.
As far as things to look out for, the other big one is assessments, as well as potential financing roadblocks with warrantable/non-warrantable condos. Avery Carl (active on this forum) has a podcast episode on her show (The Short Term Show) with an episode specifically about condos in Myrtle Beach that touches on a lot of these things specifically. I would think it's a must listen as part of your search.
Post: Higher STR Vacancies?
- Property Manager
- Orlando Kissimmee, Davenport
- Posts 919
- Votes 1,333
Quote from @Isabela Faria-Newell:
Hi! My STRs in FT Lauderdlale, FL always drop a little around October (that's our low season and that's part of our investment formula) but it picks back up in November. This is the time when kids are going back to school so families are getting their routine back and travelling is not as high on their priority.
FT. Lauderdale has ZERO restrictions on STRs, have you ran your numbers here? it's been an incredible market for us and performing much better than our best case scenario.
Ft Lauderdale is awesome but prices have gotten so out of control there I can't imagine it makes much sense for people looking to jump in now. It's twice as expensive as Destin (probably more, actually) which is already not a cheap market. Was just dabbling in the area yesterday and there are 4-5 BR pool homes there a few blocks from the beach for $4M+.