All Forum Posts by: Paul Pellegrin

Hello to the Yucca Valley/JT STR community,

My wife and I are strongly considering purchase of a 3 bedroom/2bath 1578 sq ft. in the Western Hills neighborhood of Yucca Valley for STR. House has great valley/mountain views, is close to national park and other attractions, and is on a half acre lot with much potential to develop in the future for additional outdoor amenities. The septic waste system will need to be connected to city sewer in the spring, which will run about $4200, and the house also needs a couple safety repairs/upgrades, which cost another $1500 roughly. We also estimate we would need to invest about 15-30k up front for painting/furnishing/landscaping/amenities in order to get it ready as a vacation rental. Airdna shows yearly predicted income for the address of 111k, and it looks like our yearly costs to break even on the property would run about 38k all in for mortgage, insurance, taxes, utilities, maintenance, etc. We feel like there is still room for entry into the market for a house this size that has nice amenities (hot tub, BBQ, games, etc.), but are still a little uncertain given concerns about STR market saturation in the area, and potential drop in home values over the next 6-12 months. We would greatly appreciate any input from the community regarding current market conditions, potential for income, and ultimately, whether this sounds like a good deal or a bad deal.

thanks in advance for your comments!

hi Kaleb, how has it gone for you the past year in West Virginia? Have done any successful BRRR's? I am interested in southern West Virginia too, especially since I learned about the designation new river gorge national park in December. are you local in the area? I am out of state, in california, and looking to connect with people locally and form a team because I see great potential for short term rental growth in the area, similar to what has occurred in the Joshua tree national park and smoky mountains NP areas.

Timothy Doenges, I would also be very interested to hear your thoughts on what the local STR market is like/BRRRR potential if you have time.

thanks in advance,

Paul  

thanks very much mike and ika for your comments. I intend to make some calls today!

hi Caleb, I am not an upgraded member yet, so looks like I don't have the ability to create a pdf and share a link

hello! I am completely new to this, so any and all suggestions much appreciated-

I am looking at purchase of 3 br/3 bath home in West Virginia for 139k to use as short term rental/airbnb. AirDNA shows projected rental income of $47,356 gross, with occupancy rate of 67%. for a "fix and hold" on this property, hard money lenders are offering me 12 month interest only loan with no prepayment penalties at 9.9%, and will provide up to 75% of the purchase and 100% of the renovations. The loan amount is capped at 65% of the after repair value. I estimate there a roughly 20k of repairs/rehab needed for kitchen remodel. Once these renovations are completed this same lender is offering to refinance this into a long term rental loan 30 year fixed rate amortized for 4.85%, for up to 75% LTV if the property is leased long term. 70% if it's unleashed or leased short term.

when I entered the numbers on the BRRRR calculator, there was no income positive cashflow/income on the deal, but I think that's because I don't know how to enter the numbers correctly yet.

anyone thoughts or comments welcome.

thanks