All Forum Posts by: Palmer Thomas

@Palmer Thomas - What did you end up doing?  I am thinking about doing the same thing as I would like to use the downstairs unit when I am in town.  The house is about 5 hours from my primary.

-Russ

@Palmer Thomas Steamboat is very seasonal. Most properties operate under 50% occupancy for the year. I find I run about 50% occupancy in low season (April, May, October, November) And we run about 90% the rest of the year. Our occupancy numbers are much higher than larger properties. I do not have a direct contact for a comparable property in the area but have done research through airdna, rankbreeze, etc and feel my revenue would be similar if I owned a single family of the same size. The difference was the purchase price. I was able to buy this multi family property that needed work for $645,000 in 2018. I put about $300,000 in repairs and upgrades into the property. A 7 bed/ 4 bath home would have been about $1.5 million to purchase at that time. Would a 7/4 single family cost the same? If so I would buy the single family. If not, the multi family may be a better deal and offer more cash flow for your purchase price.

Hey Thomas! A lot of variables go into trying to figure out potential revenue. I would love to help you look into this a b Which area of Myrtle Beach is the property in (North Myrtle, Cherry Grove, Surfside)? Does it have any amenities? How far from the beach is it? 

@Palmer Thomas I own a 7/4 triplex in Steamboat springs, CO that has the same breakdown of rooms. I have 4 listings, 7/4 whole property, 3/2 alone, and 2- 2/1s separately. It has been a great investment for us. We do approx. $100,000 on the 3/2. $55,000 on 1 2/1 and $65,000 on the other 2/1. The whole property doesn’t rent that much as the units don’t have connected inside access. We run about 78% occupancy even in a seasonal area. I hate the up down setup but it is a solid performer for us.

We bought a side by side duplex in Fort Morgan, Al last year that is 5/3.5 per side and also rent the whole property or the units separately. It is also a great earner for us but we see the whole property rent more for holidays and during the summer high season. The smaller units rent more during the off season and shoulder months. Happy to answer any questions you have.

Ok @Palmer Thomas, what do the comps say? Those are currently running STRs as far as I know. Do the units in service provide similar numbers? Are the 1/2 what your estimate is?

Don't just trust the estimate, look at the comps in the area for historic data.

Also, a new STR will have a lean first year as you are new. It will take some time to build up the 5 star reviews.

A really nice place on the beach, setup well and run well will do well. A mediocre place 2 doors down will do mediocre numbers.

Hey @Palmer Thomas, so look at historic numbers from 2022. Not what they are doing right now in the down season.

I rarely say check out an algorithm, but I have been using Awing.com's Estimator tool. It will give you a rough idea of occupancy and nightly rates.

Seeing as I don't have the exact address I just put in N Kings Hwy in Myrtle Beach and numbers are all over the place. So plug in the actual address and see what it says.

It just pull historical data from the area, but you can put in different numbers like bedrooms etc to get a rough idea of what to expect.

https://awning.com/airbnb-esti...

EDIT - See link above. Also they call it the AirBNB estimator so it might just pull data from AirBNB and not VRBO which is a HUGE hole IMHO if that is true. You find more mature guest groups (not old, but seeing as VRBO has been around for so much longer they have been using that tool longer) which usually means extended families visiting. The triplex could be a bonus as you could separate extended families and multi family up a bit for more privacy.