Where to buy fully furnished properties for STR and MTR?

Question

Hi friends! I'm looking to acquire a fully furnished property in Jacksonville, FL for use as a mid-term rental. Bonus if the property has a rent roll showing steady income over the last 6-12 months.

Do you have such a listing? Please connect with me!

I'd also appreciate any recommendations on where I may be able to find furnished properties, existing Airbnbs, etc. for sale. Thank you kindly!

Gino Barbaro · Answer

@Elizabeth Rose

I have a friend name Jim Sheils that sells new build to rent home in the Jax area, as well as other markets. His company is southern impression homes. If you DM me, I can connect you to him

Gino

James N Sheils · Answer

Hi Jasmine, I am a Partner at Southern Impression Homes, our focus is build to rent.We provide new construction rentals and PM (single family, duplexes and Quads) for investors. We focus in 12 markets in Florida, including SW FLWe are a long time property provider for some of the bigger podcasters: Real Estate Guys Radio, Marco Santorelli (Norada), Kathy Fetke (RWN) Jason Hartman ( Empowerd Investor) GRE (Keith Weinhold), Whitecoat Investor Group, Jake & Gino and more

We have built over 9,000 properties and work with over 1,000 investors

We also work with American Homes for Rent, Invitation Homes, Crescent, Haven Realty (JP Morgan) to name a few on the institutional buying side. We are partially owned as of 2022 by Sumitomom Forestry, which means we have no bank debt and self fund all our building projects. This is very  important as we have seen at least 5 BTR builders go sideways  and leave hundreds of investors in trouble. (we created a construction rescue program as a result of this) We  provide excellent incentives for our investors,including locking in long term debt at 3.75 % through our in-house financing program. 2 years free property management as well. A client can also close on a new property in less than 45 days so no long closing or pre construction risk. 1031 exchanges are easy to fulfill with our model. We are currently building out 5,000 lots in Florida that we personally own.

IF you would like a free copy of our best selling book "Passive Income Playbook: How To Leverage Build To Rent Real Estate To Buy Back Your Time And Have A Legendary Family Life" just let me know

Jamie Banks · Answer

Zeona McIntyre sells a lot of creative deals that are furnished and already operating STRs / MTRs. BP isn't letting me tag her here but here's her IG https://www.instagram.com/zeonamcintyre/

Gino Barbaro · Answer

@Jasmine Vida

this is his personal website

https://www.18summers.com/

This is the build to rent company he works with

https://southernimpressionhomes.com/

Dale K Poyser · Answer

@Elizabeth Rose Zillow might be a good place to start. Try adding a filter like "furnished" to your search and this could turn up positive results. I assume you could take a similar approach with Redfin, Realtor etc etc.

There are STR sites like Rabbu that present deals regularly but not sure if these are sold furnished.

Also you could joins some STR groups on Facebook.

Zachary Deal · Answer

@Elizabeth Rose I would recommend posting in the classified section of BP and tagging Jacksonville to find area specific agents!

Robert Ellis · Answer

Just a few things about southern impression homes. Great idea, but a multifamily new instead of old. However that's about where it stops. This is a firm that traditionally builds singlefamily homes. They are rolled up with 5 or 6 other home builders.

https://press.brightlandhomes.com/gehan-home-acquires-80-int...

They are selling prebuilt, 4 unit homes with garages. We build 3 story suburban walk up styles with no garages. Garages do not add much value to the structure if you ask any appraiser ask them the difference between build cost of a garage and the added value upside. I have underwritten probably 100+ new build locations just in our market in Columbus Ohio and the number are tight.

In addition, their Floorplans are very large. There is a design efficiency that they need to work on for their floor plans. If you look at their rent price per square foot compared to what smaller apartments or Floorplans get it's very bad. That carries over to the economics of the deal and you'll see returns much lower than if you run them on a more efficient floorplan.

The last thought is that they are selling their new builds for a very high price per square foot compared to what you can contract directly with a builder at. That is their profit. With them buying the land, building it, and delivering it it's a lot more risk. Just divide their purchase price by their gross heated square feet excluding garages.

Their deals are not meeting the 1% rule. At least in the latest underwriting I saw. I attend about 10 conferences a year and they have the money to advertise and pay for the booths. For an unsophisticated investor like White coat Investors who has 250k to park as a downpayment and let it sit without any upside except for appreciation go ahead.

The final problem I have with their style is the location selection. Because of the design issues and how sprawling they build (meant to be a suburban product), they valuations are going to be lower than an urban or urban adjacent infill lot. The rents will be lower than urban locations as well.

I think as someone who does new construction every day this is all things they would agree with. They haven't kept up with market demands. They are in a hot area of Jacksonville and might have 5 available at a time, but all of the above they need to fix before I would ever recommend. They may have the balance sheet and backing now to deliver more of them, but they need some consulting advice from an apartments developer. Multifamily is much smaller part of what they do. Just ask how many units they build and deliver per year. Ask they to talk to their investors about financial advisory, underwriting, exit strategies, etc. They don't have it it's non existent.

I also don't like Jacksonville personally. I like faster growth, land locked markets with premiums. I put Jacksonville at the #4 market. I don't like Lehigh acres where they build or Cape Coral a lot of the markets they build in besides Jacksonville are overbuilt. I've brought them that. Which means the investor who rents this is the person that struggles. That's my own opinion and so is all of this but I've been to all the markets they build in, I've met them and their sales team, I've seen their underwriting, I've spoken to investors who purchased with them, I've stood in front of booths where people were talking to them and asking questions that are easy but if someone is going to put 250k or even 100k they should really know everything and understand all sides of it. Education is extremely important.

Jasmine Vida · Answer

Is he on bp? I am interested in getting his info

Robert Ellis · Answer

Columbus Ohio if you are looking at new construction

Zachary Deal · Answer

It may make sense to post in the classified section of BiggerPockets as well! You will likely be able to connect with some investor focused agents in Jacksonville or directly with some sellers.

Where to buy fully furnished properties for STR and MTR?

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