All Forum Posts by: William Beck

Hey Paul,
I've worked with about a hundred STR condo transactions as a Realtor in Branson since moving here in 2020. This question comes up a lot and I think there are a few assumptions to look specifically at tweaking. There are definitely people doing well. This question comes up again and again and I still think Branson is hard to beat at the price point for entry level first time buyers.

*Disclaimer - self management, getting a really nice property to work with, using high quality photos, and proper revenue management with quick customer service are going to yield the best results. People who use a local property manager that is unsophisticated or super high priced can kill all the returns. I've heard horror stories so do due diligence. Generally people who I've worked with that have ended up wanting to sell tried to get something very entry level and it didn't rent well. People who have done well bought something that is more future-proof with upgrades, newer furnishings, rehab, etc. But anyways here's what I'm seeing.  

So let's run the #'s:

Purchase Price: $200,000

Down Payment: 10% & Interest Rate: 6.5% This might be a challenge to get unless you find a local lender, all condos in Branson that are STR approved are non warrantable. Most will want to provide some type of ARM product and may even ask for 20% down. I have local recommended ones but don't want to cross the line if you're already working with a Realtor. I do know a lender that can do 10% for a 30 yr fixed, which is at a pretty high interest rate, it might be worth looking at an adjustable, anyways. 

Principal + Interest = $1448 assuming 30 yr at 9% (explain here shortly)

Taxes:  $76.05 ($912.65 per year I pulled that from  a Pointe Royale 2/2 listed at $212k)

PMI: $0 (No PMI for non-warrantable condos which is why the interest rate is higher)

Insurance: ~$58 a month. (My policy is $765 a year for my 3BR)

COA Fee: $209/mo

POA Fee: ($1,500/yr) = $125/mo

Golf Fee: ($700/yr) = $58/mo

Utilities: $166(About $2000/yr for water/sewer/electric, there is no gas in Branson because of the lakes)

Cleaning Fee: $333 (Assuming 40 bookings a year at $100/clean for 2br is $4000 )

Internet: $60

Misc: $125 (270 a month is a bit high, I think realistically half that is achievable with about $1500/yr, The majority of the condo maintenance is being taken care of through the COA fees)

Total Expenses: $2658/mo

Total Revenue: Pointe Royale has some of the strongest occupancy in Branson with 55-70% occupancy because of the amenities that are open year-round like the indoor pool, plus outdoor pools,  clubhouse, fishing, golf course, etc. Other condo complexes without amenities may see 45-50% as average.  Without diving into the cleaning fee and sales tax as a portion of the ADR, we can keep it simple with a "what does it gross gross for the year" and there's a wide range. I've seen 2BR condos at Pointe Royale do $33,000 a year up to almost $50,000. 

Revenue Low case: $2,750/mo

Revenue High case: $4,166/mo

Monthly Cash flow: $92/mo to $1,508/mo

Hope this helps!

I just joined the Short Term Shop because they are the best at what they do. The Short Term Shop is a team of Short Term Rental expert real estate agents in various major markets across the U.S. 

I'm a Branson agent. Thanks for connecting with me @Chad. I'll get you everything you need!

I used to think this service was worth it... but I don't think so anymore. I still use them but I have them on my list of things that need to get canceled. It's just not that handy unfortunately. Now if it were $10/month, I'd be alright with it. 

Pricelabs has a decent dashboard you can get for a pretty good price for analysis. I got like 5000 STR's in my market area for a $19.99/mo deal. It's not as property specific as AirDNA but still worth for it for market macro analysis.

Watch out for those regulations in Portland!

Both! @Michael Baum

Branson's the place to go for STRs! Those are good tax questions as I'm about to head over to meet my CPA here in a few to drop off all the fun tax docs. With Branson, as long as you're within 30 minutes of Silver Dollar City, the strip or downtown you're going to have plenty of PM Options. If you buy way out far west on Table Rock, things start to get sketchy as far as options to take care of the place. Good luck with the PM Search

@Wendy Abraham who was your realtor?

Not sure if this topic deserves to be in the STR thread or private lending thread but definitely need some help. Currently I'm working with a builder on a container home project near Table Rock Lake in Omaha, AR which is just south of Branson, MO about 20 minutes. The property is easiest to understand by checking out the renderings on the MLS with the address as: TBD SKYLINE DRIVE # LOT 2 OMAHA, AR 72662
I am having a hell of a time getting a bank to lend on this since there are no container home comps in the area. I've worked with a few local commercial lenders and a DSCR lender all saying the same issue. We've ran analysis on what comparable STRs in the area have done and we have very conservatively made assumptions and it looks strong. SO anybody have experience with container home projects & Lending? I'm looking for some recommendations of a private lender that would be down for this type of project. I understand that container homes are tough for banks to lend on, so please feel free to save your breath from adding that commentary to the thread. Thanks BP Community