STR/Vacation Rental Investors, what's going on?

Question

Hey BP. I have one STR in Davenport, FL and I'm looking for my 2nd but I keep getting outbid. I know this problem is common so what are you experienced, STR investors doing? I'm wondering if I should hold tight and keep making offers or should I pivot to a different strategy (another market, BRRRR, multifamily, etc). I love STRs but I'm also willing to go outside of my comfort zone if need be. Just made Superhost yesterday, BTW :-D

Steve K. · Answer

@Eric Garcia go direct to sellers by prospecting for off-market leads. I just got a client an STR for under appraised value that they could easily turn around and sell for a lot more than they paid, by marketing directly to the sellers. Lots of deals still happening off market currently for various reasons. In this case the sellers just wanted privacy and a quick, no-hassle transaction. Listing on the MLS yields the most eyeballs and typically the highest price with the best terms. But not everyone wants a lot of eyeballs. Some just want a quick easy transaction and will settle for the specific price and terms they want before going to market. Skip the auction and go direct to sellers.

Will Gaston · Answer

Just did this in downtown Columbia. Purpose built STR in infill lots can still bring good returns.

Bruce Woodruff · Answer

Congrats! I remember that day. They just took mine away yesterday. They say because I cancelled a reservation. I did no such thing. Oh well, easy come easy go.....

John Underwood · Answer

This is happening most everywhere. I'm going to look harder at lots and new construction.

Eric Garcia · Answer

@Michael Weigum Thank you, Michael. Myrtle Beach hasn't been on my radar but it looks like it should be. I'll be in touch if I decide to make a move.

Bruce Woodruff · Answer

I would do 2 more in a perfect world......but in my area, the numbers don't work out right now...the return $$ would be too low too get me  excited......

Kerry Baird · Answer

@John Underwood, I am doing the same thing.  Just interviewed a local builder.  First steps, the builder said they get permits and clear the lot...and order trusses.  It is taking up to a year to get trusses right now.

Jay Breitlow · Answer

Keep watching IMO.  When the numbers make sense be ready...

Michael Weigum · Answer

@Eric Garcia congrats on making superhost! I know how awesome it was when we did that last year. There are still opportunities here in Myrtle Beach to make money on STR's. Especially if you have cash to purchase and then do a delayed financing. That is one strategy that is helping people secure property here. Happy to connect and answer any questions you might have.

Vijay G. · Answer

Well done Garcia. There are plenty of opportunities around Davenport, but the market is still hot. Good luck with 2nd STR.

I’m trying to buy my 1st STR in the same neighborhood. Are you managing remotely or did you hire PM ?

STR/Vacation Rental Investors, what's going on?

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