Long-term rentals may be lower risk than short term rentals but also offer lower returns.

From an investor standpoint, when you factor in lower CapEx, warranties, energy efficiency, and potential rate buy-downs, new builds can actually offer better risk-adjusted returns than older resales.

You still improved the property by curing mold, adding heat, and making the lower level functional, that matters.3.

Until this is addressed, hand wringing and clutching pearls while waiting for the Fed to lower rates is an exercise in futility.

First, what is the experience level of the operator.

Hi @Mark SorecoIn recent year it has been an overflowing of digital property management companies, many of which are not making any many and constantly investing in customer acquisition, that is the main reason that you see so low coat on their offering.If you go to stablish digital property management like belong home you will see that prices are similar than a local property management and they make you save many offering you additional services at no cost.You have to evaluate what would it be the additional work that you will have to do to get at the same level than the local PM.You have to analyze this as a business owner like any other services that you will buy from a service provider.

A zero levered project will have much lower returns (and should have lower risk profile) than a 80% levered project. 

G2 promoted a strategy focused on drilling numerous shallow wells at a lower cost, rather than investing heavily in a few expensive deep wells.

I bought a flip this week.However, my listings are sitting longer and offers are coming in lower — so I’ve adjusted my underwriting to compensate.

Great points, Jeff — and you’re right to highlight that the expense ratios are unusually efficient for a coastal STR.A couple of clarifications on the numbers:The current owner self-manages, which keeps cleaning and maintenance costs lower than a third-party STR manager would typically charge.Some of the repairs and CapEx were front-loaded in prior years (new flooring, appliances, and paint), so last year’s P&L reflects more of a stabilized-operations scenario.The utilities figure is accurate — it’s higher due to being master-metered for the property — but the other OPEX categories are slightly understated if you were to underwrite this as a fully managed, third-party operation.If I modeled it using a professional management assumption plus normalized reserves, the operating ratio trends closer to 48–50%, which aligns with what you mentioned for coastal STR multifamily.I appreciate you calling that out — it’s a great reminder of how much variance there can be between owner-operated and institutional-style expense reporting, especially in hybrid STR assets like this.Here's the owner's profit and loss statement for the exacts of the 2024 year.