All Forum Posts by: Napoleon DeCiutiis

Having a bit of analysis paralysis finding an str market with purchase price range of 200k-400k. I was going to do a 1031 and get into the Smoky Mountain area but ultimately decided not to since I have a 1099 job and enjoy the steady cashflow from my current long term rentals.

So I’m pivoting to a lower purchase price and struggling to find a good market - Blue Ridge, GA seems interesting but I’ve heard mixed reviews. Any suggestions of other markets worth analyzing?

I bought my first STR last year in New Hampshire with the strategy of purchasing homes that I can occasionally use in locales that I like to visit with my family.

I want to purchase a something near the coast in Carolinas, Georgia, or Florida in the $500k max range that is can be managed fully remotely and I can visit once or twice per year. I really don't have the ability to provide "boots on the ground" but just want the property to sustain itself through STR.

We love Charleston and I have family in Vero Beach, FL but I'm willing to look elsewhere if the numbers are better. If anyone has suggestions on location, team, etc., I'm all ears. 

I would have 25% down and mostly likely use conventional financing. 

I realize this is a pretty vague request but honestly I have rarely been to a beach community down south that I didn't like so I'm open to getting off the beaten path if it's better economics. In reality this is 20% consumption 80% investment so I need to like the place/area. 

I'm getting started investing in hopefully STR or BRRRR ......and I've got some things to bring to the table other than being a Licensed Florida Realtor! Glad to be here! I'm in the Pensacola area (not Destin)

Is there a general rule of thumb on when to create an LLC?

I'm in California and know LLC's are expensive.  But is there a cut off when you reach $xxx amount of income from your investment properties is when you should create one? Or when your expenses equal $xxx?

Thank you.

Hi Everyone, 
We bought 3 hotels & motels this year and are quickly ramping up to buy more hotels in this upcoming recession. I started in real estate with househacking (renting rooms in my house out as STR/MTR), then quickly bought 9 STRs without partners (I was an attorney at the time, so used mostly conventional financing), then quit my job to focus on real estate investing full time.

After doing a few creative STR deals (BRRRR STR, wrapped note reselling of STR, etc.) I decided to focus on hotel investing.

We plan on applying the BRRRR strategy to hotel deals, pushing the valuation of hotel deals higher with operating them better (unlike with residential real estate, the hotel valuations is tied to financial performance). 

Most recently, we were able to pull off this deal:
Bought: 48 Keys, $750K acquisition 

Rehab/FF&E: $500K 
Refinancing Appraisal: $2 Mil 
[Bonus Equity Gain: $750K] 
This is without 1 year financials yet, and we have pushed the ADR from $79-89 range to over $200+ during peak season with the renovated rooms. 

We will be using the refinancing to do more improvements to the hotel and push for a $3 mil valuation in a year or two, once we have more financial data. 

BEFORE/DURING: 

AFTER: (these are cellphone pics - we did get pro ones but I'm not 100% happy with them yet!)

There are SO many lessons learned... I've visited north of 50 hotels, underwritten at least 200-300 if not more, and made offers on about 2 dozen of these deals. We tend to be very conservative with our underwriting (assuming higher exit CAP, higher exit interest rate, market average performance even though our track record has been always outperforming market, etc.).

Here are some of the photos of us looking at hotel deals over the last 2 years...