All Forum Posts by: Ray S.

Ray S. has started 33 posts and replied 122 times.

Like you mentioned pick an area where you would vacation. You might have to wait to find a good property at a good price.

Yup, I have no problem waiting I just want to identify and educate myself on the area I'm interested in so if/when an opportunity arises I can move quickly. In other areas I was looking at in the past in which I was early, it took me so long to learn about the area that by the time I actually was ready to pull the trigger prices had moved up 30-40% in just a few months.

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Quote from @Monica Mejia:

Hi there! Love that you're looking to expand your short term rental portfolio!

Have you considered the Colorado market? I currently own/ operate 2 STR's in CO and if you enjoy beautiful hikes, mountain homes, skiing, and amazing nature views overall, it may be the place for you!

The investment for a STR in CO really depends on the geographical area you're more interested in. Median home prices here are around $650k and you'd be looking at cash on cash return of about 20% - 35%. Would love to know your thoughts (:

Which area specifically? I looked a while back but from the numbers I saw there was no money to be made. Seemed like an area you buy in because you want to use it and can rent it on the side to try and pay off part of your mortgage.

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Quote from @Ricardo Hidalgo:

Quote from @Ray S.:

Quote from @Ricardo Hidalgo:

Quote from @Ray S.:

I'm looking to pick up another STR. Ideally I like to buy STRs that I also would want to vacation at. I was considering a beach location next. I had my eyes on Destin from a while back, but then prices went nuts and I stopped looking there. Is Destin still a good area to buy is it too expensive to make any money? If so, are there any areas or specific condo property names that people would recommend? Or if not, how much would the market have to come down to make it attractive again?

I like Navarre Beach and Panama City beach for best cash flow or appreciation based opportunities since thats where the majority of developments are occurring with commercial infrastructure being built out. The beaches are white sand and emerald waters with good school systems and strong tourism. Job growth is stable and land is limited while being short term friendly.

Are there any specific areas, complexes, resorts, etc. that you recommend looking? Home or condo? Thanks!

It's area specific and what your goal is for the rental. In addition, I'm not sure what your desired cash on cash and appreciation returns. How much capital are you wanting to deploy at a time?

Something that can cash flow is priority. Obviously something that good appreciation potential too is a plus. I don't know what cash-on-cash I'm looking for, what is possible in that area? I was looking in the 300-500k range. Can that get a condo with a view or a home? How can I browse STR inventory in that area? Thanks!

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Quote from @Ricardo Hidalgo:

Quote from @Ray S.:

Are there any specific areas, complexes, resorts, etc. that you recommend looking? Home or condo? Thanks!

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Quote from @Dave Stokley:

I’m sure @Luke Carl can give you the scoop on the Destin market.

Here's an alternative perspective. I was in the same position as you, thinking about buying another STR in a location where I visit often (Phoenix, in my case). Based on my planned use during high season I'd be hoping to break even the rest of the year. At the end of the day I decided just to buy another one where I already have operations in place and use the earnings from that to travel wherever I wanted. This simplifies my business and provides flexibility rather than being locked into one location.

I see your point, but a big reason I want to buy in areas where I like to vacation is not really so much to have a place to go on vacation but so I will actually go there on vacation to check in on the place and also so I'll take interest in the area to be able to learn everything about it from a guests perspective and be able to provide the best experience for my own guests. It's also nice having the place to be able to use when I want or be able to lend it to friends and family to use, but that certainly is not a requirement.

What areas are you currently doing well in? Thanks

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Quote from @Matthew Doyle:

So I already own a STR in a colorado ski town that does fantastic..I would buy another if I could but I want to take advantage of the 10% second home loan for my next property.

The smokies are a popular spot for this investment strategy but something I can't seem to wrap my head around is the market saturation of these cabins in the Gatlinburg area. Does anyone else see this as an issue? There seems to be 1000s of rentals of the same unit type...and they just keep building more. That compounded by the fact that there is no limitation on supply, the land seems infinite to develop.

I'm not in this for quick liquidity reasons, but do people have concerns about even selling in 10 years from now - the supply just seems to be over the top. Also how does one even enter this market as a new rental, the competition seems stiff. Are people still entering this market now (past 6 months) and having success with it?

Furthermore, are there other areas in the smokies (NC for example) that are worth considering that see similar success as gatlinburg and co?

Thanks for the advice!

As they are building more cabins, they're also building more attractions, many that appeal to a much broader range of tourists than before, and giving more people a reason to go there. Covid gave that area a huge boom. Some of it is temporary, but I also feel it made a lot of people aware of that area who previously may have never thought to go there before and now may become a regular. The nice thing about the Smokies is that it attracts a lot of families and they go every year.

I do think the prices there are still WAY too high for new investors. These cabins require a ton of upkeep and you really have to be making a lot of income and self manage to be able to cashflow. Just staining the cabin alone is like 12-15k. I own there from back when that area was cheap, but continue keep an eye on the market and rarely see new properties come up that realistically would cash flow well unless rates continue to move much higher, which I don't really see happening anytime soon. .

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Many of the STR markets I've been eyeing have nearly doubled in the last 6-12 months and I'm always afraid of buying anything that has appreciated so quickly, and now the returns aren't as attractive. Are there any lesser known STR markets that aren't heavily invested in yet that have a lot of growth potential or just great cash flow? Ideally near the beach or mountains. Open to any ideas. Thanks

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Can anyone recommend some banks to refinance a property? Is it better to use a big bank? A local bank? A credit union? If a local bank, is it better to use one in the state you live in or the one the property is located in? I'm not looking to take any money out, just lower my rate.
Thanks

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Originally posted by @Ivan Barratt:

Treasury bonds. As interest rates fall the bond will also appreciate.

Straight up bonds, or bond funds? Thanks

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All Forum Posts by: Ray S.

Ray S. has started 33 posts and replied 122 times.

Post: Any recommendations on where to buy next?

Post: Any recommendations on where to buy next?

Post: Any recommendations on where to buy next?

Post: Any recommendations on where to buy next?

Post: Any recommendations on where to buy next?

Post: Any recommendations on where to buy next?

Post: Market Saturation in Smokies?

Post: STR market with grown potential?

Post: Best banks for refinance?

Post: Where to keep cash on the sidelines?