All Forum Posts by: Sarah Kensinger

I'm not sure if you found a photographer yet, but I just sent you a DM to a recommendation in the Nashville area.

I know Cape San Blas is not a very well know area, so maybe some social media marketing might draw some interest to a place many people don't know about. So far from a nationwide collective, summer bookings are up 10% from last year and the flood of new STRs seems to have stopped. So, I wouldn't say things are exactly slowing down but guests have probably become pickier on where they stay.

Quote from @Mike Downey:

Quote from @Sarah Kensinger:

Love the "north of 98 is the death zone for STR"! We had a realtor pretty much tell us the same thing. Unfortunately, everything south of 98 in PCB is usually a condo or townhouse but usually they are a short ride or walk to the beach, which does makes them book quicker. Beware that most condos are non-warrantable, so be prepared for that if you choose to go the condo route.

 Hey Sarah,

Is the major downside to "non-warrantable" that lenders do not want to finance, so it will be difficult getting a loan? I am not very familiar with this concept. Thank you. 

Non-warrantable condos are harder to get lending on, but The Lender and Host Financial do provide STR loans with 25% down. You also do need at least 20% preferably 25% down on non-warrantable condo and down the road it could be harder to sell. But it could also flip back to warrantable too. For the most part all condos in FL are non-warrantable so it's not that big of a deal, you just need to make sure you have the down payment and sometimes patience for a couple extra hoops during the loan processes.

This is a hard situation for a young person that should be able to responsibility enjoy your teen-early 20 years! Definitely find an attorney like everyone else is suggesting, but make sure you find a good attorney that won't take advantage of you in this situation. Family can make or break a person, and it can have lasting effects for years to come. Never forget family doesn't define you or limit who you can become! You can be whoever you want, the sky is the limit!

If you want true asset protection the property cannot be in your name at all! There is no half-way and those that don't set up their entity correctly, get in trouble later and then spread around that LLC's etc. are a joke and don't work. They do work wonderfully but you have to do it right! Regardless you need good insurance. Proper offers plenty of liability with options to have more than their limit, so you shouldn't need an umbrella policy. Although insurance is not asset protection....it's exactly what it's called insurance. If you really want asset protection, which I would highly highly recommend since you're running a STR, you should check out Anderson Advisors. Their YouTube channel has oodles of videos with info, and they offer a free call to chat about your particular structure and what they would recommend. They can also help you with how to build the partnership, tax benefits that come with owning real estate, and using a 2nd loan mortgage with an LLC. Also, you won't cause a due on clause sale since the law changed around 2016, but the person(s) on the loan has to be the majority holder of the LLC or Land trust. It's possible and something we almost did earlier this year with Anderson Advisor's help.

Just like with any other amenity if your insurance policy covers it, you should be good. And a pro tip to help you make a decision...lots of the top performing STRs have gym equipment and it's another box you can check on the OTA.

Reach out to some STR realtors or STR companies in the area that can give you some info. I'm hearing some mixed things about that market within the STR community, and since I'm not there or even checked into the market I don't know for sure what to expect in the coming years.

Modern A-frames are a huge hit right now and since your area is in the Blue Ridge Mountains it would be perfect! If you choose to build an A-frame, make sure it's got that modern edge and you should be good to go!

I know most people look for a pool when they book a STR in a warm location. Since most people can't afford or want to bother with a pool at their personal home, they want them at STR when they travel.

Love the "north of 98 is the death zone for STR"! We had a realtor pretty much tell us the same thing. Unfortunately, everything south of 98 in PCB is usually a condo or townhouse but usually they are a short ride or walk to the beach, which does makes them book quicker. Beware that most condos are non-warrantable, so be prepared for that if you choose to go the condo route.