New build Short Term Rental - Table Rock Lake

[Jake Boyer]

Investment Info:

Single-family residence other investment.

Purchase price: $467,278
Cash invested: $75,000

New build STR on Table Rock Lake just outside Branson MO in the Jax Creek Development. This single family home is 4 bedrooms 4 bathrooms and is located in a community of STR's. The contractor also has a property management company who will manage the properties in the community and offers additional ammenities like free kayaks, paddle boards, etc. for tenants in addition to boat rentals and more. This process started out a little rough as the builder died from Covid shortly after we signed the contract. Things got delayed, communication fell off, and the stress level went through the roof, but we're back on track now and hoping to be done by the end of May and start taking tenants!

What made you interested in investing in this type of deal?

Intended to be a passive investment, but things changed when the builder passed away and communication became a challenge with the new players. My partners and I stepped up and started putting pressure on them to perform and we're back on track now. Always been interested in the STR space and found this as a great opportunity to get into one.

How did you find this deal and how did you negotiate it?

Found through one of my partners on the deal who has other STR's in the area

How did you finance this deal?

Each partner put up money to purchase the lot with cash and the builder financed construction and will get it financed once complete.

How did you add value to the deal?

Building new

What was the outcome?

Still in progress, but should be complete next month!

Lessons learned? Challenges?

Communication is absolutely KEY! Make sure to establish tangible targets to achieve and keep a timeline with their commitments to ensure things get done as promised.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

No

[Malcomb Stapel]

@Jake Boyer  I hope you have more pics. We love the Branson area; especially lakefront property. 

[Valerie Budd]

Can anyone manage this property or do

You have to use the developers property manager ?

[Todd Goedeke]

@Jake Boyerdid you utilize the basement space by constructing a walkout basement?

[Shannon Vistisen]

You mentioned that the builder financed the whole build. You didn't have to put up any funds while the build was happening?

We're planning on doing this now. Just secured the land and now we move into the next phase of finding and vetting a builder. We went the build route because the area we wanted to purchase in, we were getting priced out left and right.

Thanks for any advice and tips!

[Drew Sygit]

congrats

[Rebekah Hitt]

Looking at an existing STR on Table Rock Lake for purchase this week. What made you decide Branson, MO. / Table Rock area?

[Valerie Budd]

@Rebekah Hitt what size STR are you looking for in Branson?

[Jake Boyer]

Quote from @Todd Goedeke:

@Jake Boyerdid you utilize the basement space by constructing a walkout basement?

We did, the home is a “daylight rambler” with one story from the street side with the walk out basement. The builder offered a few standard floor plans that are consistent with the neighborhood

[Jake Boyer]

Quote from @Valerie Budd:

@Rebekah Hitt what size STR are you looking for in Branson?

 I’m anxious to get this one completed before looking for another, but once I have some proof of concept and can gauge the demand and performance in the market I’ll consider adding another

[Jake Boyer]

Quote from @Rebekah Hitt:

Looking at an existing STR on Table Rock Lake for purchase this week. What made you decide Branson, MO. / Table Rock area?

I like the fact that it’s a regional drivable destination and has year round attraction with Branson and the lake. I’ve got a friend who has one there and says it’s a cash cow! Anxious to get this one done and see for myself 

[Jake Boyer]

Quote from @Drew Sygit:

congrats

 Thanks!!

[Jake Boyer]

Quote from @Shannon Vistisen:

You mentioned that the builder financed the whole build. You didn't have to put up any funds while the build was happening?

We're planning on doing this now. Just secured the land and now we move into the next phase of finding and vetting a builder. We went the build route because the area we wanted to purchase in, we were getting priced out left and right.

Thanks for any advice and tips!

Yes he did, however we had to purchase the lot as our earnest deposit essentially. Lot purchase was $75k so a significant percentage of the overall cost, but builder finance allowed us to not have to pay interest during construction. I’m a BIG fan of building ground up since the cost to build typically pales in comparison to the completed value, plus the ability to have it just how you like it. Definitely more work upfront but working with a design builder helps streamline things. I would not necessarily recommend the builder I’m working with and won’t work with them again as a result of their internal issues, but fully support the process of building vs buying. Happy to answer any other questions you may have!

[Jake Boyer]

Quote from @Valerie Budd:

Can anyone manage this property or do

You have to use the developers property manager ?

 Anyone can manage, but utilizing the management provided by the builder has some advantages. Plus we don’t want to wind up on some list in the management office that may reduce the level of support and management provided on site since the whole community is the same builder and they offer on site services

[Jake Boyer]

Quote from @Malcomb Stapel:

@Jake Boyer  I hope you have more pics. We love the Branson area; especially lakefront property. 

I’ll definitely add pics as the build progresses! This property isn’t on the lake front, but backs up to the community pool and is only about 500-1000’ from the water. My next one I would probably build on the water, but partners on this property wanted some proof of concept before making a bigger investment in the area

[Marylin OShea]

I couldn't tell from your profile how much experience you've got with STR but happy to help if you have questions!

I am an ambassador for airbnb and help onboard new hosts at no cost to them (I get paid a referral fee from Airbnb). www.airbnb.com/r/newtoairbnb 

One of my long-term rentals needs a total rebuilt and it's a little intimidating because I don't have construction experience and all I hear is "raw material costs are going through the roof". Well done on getting this done! Wow.

[Valerie Budd]

@Jake Boyer

We have been managing and owning nightly rentals in the Branson area since 2005 and know the market and area very well.  We were the largest outside PM company at Jax Creek.  When the internal management company saw our growth and amount of bookings we had for our owners in Jax Creek they removed us from the allowed management companys.  Since then they have blocked other PM company's too - after the  owner Jay's passing.  The owners that had to leave us one of them sold and the other is certainly missing us.   Ask the management fees and to look at owner statements.  You may also want to talk to other existing Jax Creek owners for more details.  

[Rebekah Hitt]

Quote from @Marylin OShea:

I couldn't tell from your profile how much experience you've got with STR but happy to help if you have questions!

I am an ambassador for airbnb and help onboard new hosts at no cost to them (I get paid a referral fee from Airbnb). www.airbnb.com/r/newtoairbnb 

One of my long-term rentals needs a total rebuilt and it's a little intimidating because I don't have construction experience and all I hear is "raw material costs are going through the roof". Well done on getting this done! Wow.

[Rebekah Hitt]

Would love to connect! I am a new STR host and would like to hear any tips! Please PM me….