All Forum Posts by: Scott Rankin

Hi Whitney, I tried to post the zoom info but BP removed it.  Apparently it violates their rules somehow.  If you click the link in the link below the zoom info is there.  I hope that helps!

www.tobyhannaforall.com

Hi!  Just an update on this topic, the meeting is now tomorrow (Weds 3/23) at Kalahari if anyone is interested in voicing their opinion on the Tobyhanna ordinance.  This site has the info-  https://www.tobyhannaforall.co...

Hope to see you there!

Hi all, I'm going to be at the Tobyhanna Township STR discussion tomorrow (Wednesday 3/23) at 5p if anyone is interested in meeting up in person. The purpose of the meeting is to discuss their latest STR ordinance proposal.

It's at Kalahari, apparently because so many people showed up at the last board meeting to voice their displeasure with the proposal.  Hope to see you there!

Hey John, thanks for posting.  I'd definitely be interested in something like this, I appreciate the initiative!  

@Mark Miles, I know we've had this discussion before, but a lot of us have invested very successfully in the Poconos, and built a good community there.  I don't really understand what value you think you're adding to the forums by relentlessly posting these kinds of messages.  It certainly does not align with any of my experiences in the region. 

Best,

Scott

Well said @Ryan Chatman!  I second all of that.  

Hi Dan, I agree finding a good realtor can be difficult as the STR market has changed the landscape pretty dramatically and not many of them are up to date with local regulations, etc. I can recommend a couple people, go ahead and DM me for info. That said, always do you own research before making an offer! Call the HOA/township/county to make sure you can use the property the way you're envisioning. The regulations change rapidly.

Good luck!

Scott

Property Management is definitely the hardest part of running STR in this area. There aren't many options that provide the full suite of services (cleaning, guest communication, etc) you need to operate successfully. I'd recommend looking on Facebook and in your community for recommendations and just ask everyone you meet who they use. You'll start to hear some of the same names crop up for handymen/cleaners/etc.

One note of caution, I know you said that the houses you're looking to buy are operating as Airbnbs, but definitely double check that they're operating legally. Alpine Lake is in Pocono Township, which only permits STR in commercial zoning districts. Alpine Lake's website says they're not allowed in that community, so it's worth doing some due diligence before you commit to the purchase.

https://www.alpinelake.org/inf...

I hope that helps!

Scott

Hi Kano, welcome to the community!  I've been running STRs in the Poconos for a couple years now and had a great experience so far. I can't speak to the accuracy of AirDNA's data, although I think it has gotten quite a bit better over the past few years.  I do think their overall occupancy rating can be skewed a bit because they can't distinguish between days that went are rented or days that the owner took the house off the market for personal use.  Lots of owners in the Poconos rent part-time and use their homes, so it can be hard to get an accurate read.  

Overall, Covid has REALLY skewed the numbers in the region.  Our places have been over 90% occupied in the past year, but we were closer to 65% prior to that.  I expect the numbers to climb back to earth a little in the fall, but the region has definitely experienced a lot of positive growth and publicity in the past year, so I believe demand will remain robust.

That said, underwrite conservatively to make sure your numbers work at a low occupancy rate/nightly rate and be pleasantly surprised when you do better!

Where in the region did you put in your offer?  I'm always happy to meet fellow investors!

Good luck!

Scott

That's a pretty tough question to answer, as there are a lot of factors that go into calculating your return.  It will vary pretty widely depending on the cost of the property, your operating costs, and what you can generate in income.  I know that seems like a pretty obvious answer, but sadly it's true!  That said, in my experience you can generate a very good cash on cash return, but that's dependent on finding the right property at the right price and finishing/photographing/managing it well to ensure a high occupancy rate/nightly rate.  It's a lot harder to stand out in an increasingly crowded market if you're managing remotely and you don't have good photos or a unique property.

I hope that helps!  Do a lot of searching around for listings that are booked a lot and there's no substitute for driving the area to get a better sense of the types of properties available.  

I agree with Yahav, I'm definitely curious where @Mark Miles is investing!  

Also congrats on a great purchase, 20% cap rate is fantastic!  

I also have a few properties in the Poconos that have performed very well (over 25% cap rate) and haven't experienced any of the issues discussed in this thread.  There has been pretty significant appreciation in the past two years as well due to investors and second home buyers flocking to the region.  As always, your mileage may vary, so do your own due diligence.  Drive around the region and work the phones, you'll learn more in one day of doing that than months of trolling the forums.