Market Research: How To?

Market Research: How To?

New York City, NY 路 Member since 2017 路 7 posts 路 0 votes
Hello BP! This is my first post ever. I have been a long time podcast listener, and I look forward to interacting with the BP community going forward. I will post a little bit about myself after my question. Of course, if this has already been answered, I apologize, please simply point me to the right direction. The fundamental question I'm trying to answer is: WHERE do people vacation and WHY? Subsequently, I want to ask, is this particular short term rental market saturated? Additionally, I cannot answer these questions on gut, because I plan on pitching my rental ideas to investors and I need hard data. It also makes me more comfortable. In order to answer these questions, I've come up with a few measures/ideas: -US bureau of economics travel and tourism satellites report the economic impact of tourism in their state. They report "visitor spending on lodging" among other data. Is this useful? Does it paint a good picture of the vacation market in that area? -number of attractions nearby -most traveled tourist destinations reported by TripAdvisor (or similar) I'm really stuck and not sure where to look next. Basically, how do I determine if a short term rental market is a good market? But, once I figure that out, how do I weed out the areas that are over saturated? (I don't know for sure but I imagine many regions of Florida are quite saturated?) Here are my ideas for rental supply research: -www.airdna.com reports supply side well, but not really the demand at all. -hotels nearby Any and all help is appreciated. Thanks so much! A little about me: I am from Grand Rapids, MI, but I currently work and reside in NYC. I just graduated from college and have zero real estate experience (statistics degree and I work at an investment bank) but I am looking to try my hand at short term rentals. Specifically, I want to purchase unique real estate for vacation rental use. I chose this because unique real estate usually rents at a premium, while the costs of owning/building unique real estate are comparable to traditional real estate. Example: tiny homes.* Tiny homes rent for about the same price as hotels in their area, but they cost around $100k (or less). Here is my general plan: purchase a lot of land, and build a very unique home on it. I do not want to purchase a house and then modify it to be unique, because the costs to make it unique at that point would eat up any earnings. I am looking for lots (I may ask a question in the future about finding lots). I plan on financing the project through a construction loan (hopefully the bank agrees). If not, I think finding private loans will not decrease my chances of success. I then plan to use Airbnb/vrbo as my primary platform for renting out the unit. Well I think that's everything. Obviously feel free to reach out if you have questions. I look forward to meeting the BP community 馃槃. *I do not want to invest in tiny homes, however, because I believe they are too much of a fad.
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  • Homeowner 路 Tampa, FL 路 Member since 2016 路 358 posts 路 65 votes
    9y
    Why you try to handle so much? Analyze paralyzed you. The best work should be to buy one piece of property and learn through it. One my client spend 2 more years before he finally brought a home. I found he analyzed so much but all that are useless and not even close to real information. He was afraid to pay realtors but he has no capability to make information useful. As a result, He paid at least 35% more and his more than 2 years self analysis didn't get any payment neither. Simpler will give you a clearer vision.
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