Scottsdale STR Local Realtor

[George Mevawala]

Hi All, 

I I thought I would start a post to talk about the success that my newest venture has been experiencing in the Phoenix/ Scottsdale market. I currently own/ self-manage a handful of very lucrative vacation rentals in the Scottsdale market and must say 2018 continues to blow me away as I am now booked all the way until the end of  October with all my units. 

If you follow the strategy correctly, you can make an extremely good “cash on cash” return (27-42% depending on debt services). Which in return can bring strong annual returns. I have represented several buyers and helped them in acquiring, furnishing, getting their platform started, and creating their very own rock star vacation rental. ( I also just closed on three single-family homes in the Scottsdale market for my clients).

 It brings me lots of happiness, as I am a “pride of ownership “ kind of guy, and like to see everybody be happy with their investments. I am currently a super host with over 140 (4.9 star reviews on AIRBNB), and this all started with just an idea to try and make some seasonal income. My two most recent units purchased has maintained 91% occupancy since going live in November 2017 and have brought in over 25k each gross in just under 8 months. Not too shabby for under 200k investments. 

Not to mention seen over 11% appreciation each with no rehab costs. If you have any interest in taking a look at the Phoenix market, any questions about how to successfully run/ manage a short-term rental ( in any city), or just want to pick my brain, feel free to reach out. I love hearing other investor perspectives. Hence why bigger pockets has been such a value add to my life! 

I have multiple properties that meet my criteria currently on the market, breakdown of expenses ( cleaning fees, furnishings, operating expenses, etc.) I’m more than happy to chat! 

Thank you, George

[Justin Ellis]

It's funny, I read this thread and then when checking my eMail, got this....

" Dear Vrbo Partner,

The Arizona State Legislature has formed a Joint Ad Hoc Committee on the Impact of Short-Term Rentals on Arizona Communities. The Committee’s charges are to:

1. Compile data, reports and testimony on the prevalence of short-term rentals in Arizona and individual communities;

2. Consider the community impacts of short-term rentals including on municipal residency, workforce housing stock and residential rental prices;

3. Evaluate the implications of tax revisions on the short-term rental market; and

4. Discuss opportunities to address emerging challenges presented by short-term rentals."

For those that don't know Arizona is one of the few states that have legislation in place prohibiting cities from banning and regulating STR's, however, based on the above we can see that this is under attack and will most likely be overturned at some point.

As I drive neighborhoods I often see "movements signs" in people's yards, "Neighborhoods are for neighbors, not vacation rentals". Obviously there's a grass roots component here (along with the hotel lobbyist's obviously).

I say this, in this tread specifically, not to play chicken little but to make potential short term rental investors in the Tucson, Phoenix, Scottsdale, Flagstaff and other communities aware of the fact that Arizona will not always be the "Airbnb Wild West" and to be prepared for the eventuality of STR regulations being imposed here, as is happening all over the country.

Now, most of the regulations that I've seen that have been imposed have a grandfather component so getting in ahead of the "smack down" could stand to secure the value of your rental, but this has not always been the case, some places simply shut it down (Which I don't think AZ would do, if anything they'll just impose a permitting requirement as it shows good faith to the lobbyist's AND increases tax income).

Also, government regulation isn't ALL bad, as it slows the influx of competition in an area, helping to keep prices from bottoming out.

I say all that to say this. If buying specifically for the purpose of STR....

- Make sure to buy in a place that you could easily convert to LTR and still cash flow

- Don't count on the high COC numbers forever (this game is getting more competitive DAILY. Just wait until Airbnb gets in full swing of flooding the platform with THEIR OWN properties. What? You though they were building this platform for YOU, HAHHAHAH! Fool me once Amazon)

Don't be deterred by this, there's good money to be made. Just be AWARE and cautious when making moves in the STR space!