Need help with analyzing a property in Luray VA for its potential for STR

[Akash Dedhia]

Hi Team,

I am looking to buy a property in Luray VA ( Shenandoah area) costing 450K i will be putting 20% down and financing the rest. Externally looks like a B- Inside is an A-. It is a 3 bd 3 bath. It has 3 acres lot. If my goal is a min 15% CoC return is it a worth getting into; I would be using property management company to service it ( should help in running numbers

[Michael Baum]

Hey @Akash Dedhia, so there are some regs there in Luray, VA.

• Occupancy of no more than six (6) guests at any one time;
• Off-street parking is required for all guest vehicles;
• One identification sign can be permitted on the property not exceeding four square feet on either side;
• Meals, if provided, shall be served to only guests renting bedrooms in the dwelling;
• Obtain Town Business License; Transient occupancy tax and meals tax must be collected and remitted to the Town;
• Special Use Permit shall not transfer upon sale of property or membership interest composition of the holding company.

There are more to look at. Approval is done by the city council for licenses. So I would check if what you are looking at is zoned R3 as both the recent applications are in the high density area.

Now, there isn't much info for us to evaluate the deal. Have you looked at other STRs in the area that are similar?