All Forum Posts by: Stefan St. Marie

Turnkey vacation home for sale on Madison Lake, MN

$1,350,000 | 5bd, 8ba | 6500sqft 
$273k Projected Gross Rents

Private oasis, secluded 2 acre wooded lot on 253 ft of shoreline on Lake George in Madison Lake, MN

Address:
60305 Frankiedankie Drive, Madison Lake, MN, USA

Revnest listing (contact owner):
https://www.revnest.com/properties/117

$104K+ Rental Income | Sevierville, TN

3bd, 3ba | 1800 sqft | Heated pool, hot tub

Off-market Revnest listing:
https://www.revnest.com/properties/105

@Richard Elvin Yes you're right, and you might as well add Revnest to your search. There are some surprising cap rates that pop up. 
And if the home is mostly ready but could use your expertise to get to the next level, why not? We had one that went fast with a 13.8% cap in Colorado. And between you and me we could do a few things to even improve the listing. 

The current buyer persona is someone wanting something turnkey. 
A buyer with a 1031 that would love to buy and have it on Airbnb/Vrbo/Booking the next day after closing.
We also have a few fund managers watching our listings. Funds that are needing to buy 100 homes and working hard to get enough bought. 

The biggest thing is that until now, investors could only use projections to analyze deals. But now we have the historical performance as another metric to use, and only Revnest is making it easy to see that quickly on the listing itself. Should help make analyzing deal after deal a simpler process. 

Hi all, 

Stefan here with Revnest. I'll answer as many questions as I see. 
Thanks for starting the discussion here @Michael Alexander

@Ryan Moyer thanks for the compliments! We launched this year and traction is growing. We just won a $100k investment to put towards sales and product. I'd link the article but might not be allowed. 
Next big growth areas for us is Property managers:
Property manager's biggest reason for churn are homeowners that sell. By providing a tool (Revnest) to PM companies they can get those homes listed on Revnest. If the buyer intends to keep it as a vacation rental then that PM has a better chance of retaining that home in their portfolio. 
We are in the process of onboarding a few hundred listings from our PM network. 

@V.G Jason Good question, we want to be free to use for buyers and sellers to help solve the problem we're seeing and that's centralizing the supply of vacation rentals for sale. 
Right now if you want in on the "deals"... there are about 30 different email lists, social media groups, and brokerages you need to talk to. 

@Michael Baum totally fine! Revnest is for buyers and sellers of vacation homes. I believe you manage STRs right? If you ever need to sell one in the future we'll be ready to help add value to the process!

@John Underwood We launched that press release a few months ago, a pleasant surprise to see the discussion this morning :) 

@Richard Elvin
I'm with you! List your home for sale on whatever has the largest reach!
Investors are always looking for a good deal, 100% of the time. Thats why the homes with strong cashflow and high cap rates are selling fast. I have a few examples I could send you but don't think I can share links. 
The problem that exists is that there are existing turnkey vacation rentals that are for sale but how can we find them? This entire underground and "offmarket" world has erupted and unless you're in on all the channels you can be missing out on good deals. 
The whole reason for the recent NAR lawsuit is because buyers and sellers are restricted by archaic system of fees when technology is available to make the process faster and more simple. Sellers list "off market" because there isn't a marketplace for them to self-serve. But now there is with Revnest.
I will say this too, agents are great and they provide alot of value. But agents are losing their investor clients because they don't have the tools to market a vacation rental. I've even seen vacation rentals on commercial listing sites like loopnet. Giving agents something like Revnest helps them serve their clients better by marketing their home as a turnkey vacation rental. 

I'll keep an eye on the thread to answer any other questions!

Here is what I just sent a friend interviewing PMs

- distribution: are they only on one channel? (Airbnb,vrbo,booking)
- what’s the average occupancy rate for your other homes my size
- how do you handle claims or bad guests?
- in addition to the management fee, what other fees do you charge and collect? What’s your margin on the cleaning fee?
- what sorts of owner expenses will I see on my statements?
- do I have access to viewing future bookings and what details do I have access to? (Are the bookings/finances actually transparent)

- what’s your pricing strategy?
- what’s your minimum stay strategy?
- what’s your cancellation policy for guests? If you collect a cancellation fee is that shared with the homeowner?

Didn't see much STR on the agenda.
Will you be going to VRMA in Orlando the week after?

I'll add 2 notes to the other good replies. 

Lenders stick to the traditional appraisal for "value", but for the DSCR breakdown they will use trailing 12 months to come up with approval. They value that above the Airdna numbers (source @Zach Edelman and Easy Street Capital, Host Financial, Dominion Financial etc)

Theres a new listing site for specifically turnkey Airbnb/Vrbo properties that puts the historical revenue up front. 

@Brian Plajer

7 day minimum stay isn't necessarily the problem. But looks like you have a setting that only allows the 7 day booking to start on a Saturday. 
That will hinder bookings. 

Sounds good and hope you crush it!

Congratulations!

Question:
Is there a permitting rule that requires a 7 day stay and only checking in on Saturday?
Seems very restrictive and would deter a lot of guests. 

Only other feedback (not that you asked) is to put the bikes in one of the first 3 photos and even the title. That and professional photos. 

Best of luck on your journey! Its fun :) 

Looks like its seller finance? I can't comment on finding 20% down without knowing your finances. 
Could they seller finance the 20% down? 

Make sure you write this up with an attorney.

For the "letting family use the shop" I would recommend building in rent. That's $96,000 for the 4 year free rent. What happens if they want to delay retirement by one more year? Or what if they retire early? 
I'd say increase/decrease the purchase price so there is money on the table for them to pay monthly rent. Makes it more clear who is the owner and who is the renter.