All Forum Posts by: Adrian Clapp

I agree. One big storm and your HOA and insurance costs will go up a lot. Sell if possible.

If the seller is motivated, you can find condos and some homes 20-30% off peak prices from a couple years ago in Scottsdale and the surrounding areas. 1 BR condos in North Scottsdale that I sold for $365k in 2022 can now be purchased for $300k. Increased rental competition from new multifamily and STR over saturation has made a lot of investors jump ship.

Montana’s proposed law would lower property taxes for primary residencesand long-term rental properties while increasing taxes on second homes and other high-value properties.

Great! Let us know what you think.  I learned a lot!

It's even worse for landlords "The company is also asking for rate hikes of 38% for rental dwellings and 15% for tenants, with the rates taking effect May 1."

I have found there to be a real shortage of long-term rentals in Ludlow and the surrounding area. It would be great if your rental could also work financially as a long-term rental if the STR market changes. Or perhaps medium-term rentals in the off-season?

 The Florida MF deal was from Feb. 2021 to November 2023 and the ATL hotel deal was from March 2021 and is still ongoing (planned exit in 2026 but is infinite returns so I'm in no rush!)

Be cautious.  AirDNA bases its rental data/projections on asking rates and doesn’t account for owners discounting when asked by prospective guests.  This happens A LOT in over-saturated markets where competition is fierce.

AirDNA data does not account for "discounting" by hosts.  In over-saturated areas like Scottsdale, hosts are often asked by guests to discount their nightly rates (especially for extended stays) and many hosts accept the discounted rates because they know that if they deny the request, the guest will simply book with a different host that will extend a discount.  If AirDNA sees a property is "booked", it just takes the number of dates booked and uses the list rate.  I confirmed this issue with AirDNA data with the AirDNA team at their 2023 BPCon booth.

I’ve been in a similar situation with a commercial office building in the northeast.  Two lessons I have learned: 1) CashFlow is critical and 2) Sometimes it’s good to sell when things are going well- I bet you weren’t considering selling when it was worth $2.7M.  At least with residential Multifamily your building is more likely to increase in value again.  With the current positive CF and interest rates hopefully falling in the near future I would hang on for now until the rates come down and values start increasing again.  Especially since you haven’t seen any suitable replacement property.

I will add that you will probably feel really good in a couple of years when you sell it.  It’s probably still a significant amount of work for $1500 per month CF.