All Forum Posts by: Anthony Cuiffo

@Zachary Beach the main pull of the short term rentals has been COVID to be quite honest.  When NYC became a ghost town, people needed a place to go, and the Poconos were 100 miles away.  In less than 2 hours people could go from an inner city to “The Country”.  When the Poconos were re-discovered, people discovered they could buy a vacation house for about the price of a Range Rover.  In one year the value of my homes went from about 90k to about 160k.  This is still about 80% of what these houses sold at their peak. The community where I have my homes has its problems, but it is also well run, embraces the short term rental model, has hired people to accommodate the check in process (gated community with 5300 homes). Other gated communities have banned short term rentals all together. This one is investing $7 million on a new pool. 

Everyone seems to be concerned with my motivation. Doesn’t anyone on this board ever retire?  I’m almost 60.  $8 million ($6 mil after tax) can provide a nice  nest egg.  Like any other investment, I will probably trim my holdings rather than liquidate 100%

PCP has a bad reputation, but it’s hard to argue with 500% appreciation over 7 years, not to mention a steady cash flow.  The Airbnb guys are killing it 12 months a year, between ski resorts, water parks, lakes golf etc.  People coming from NYC think $300/night for a 3 br house is the deal of the century.  

sure, no great mystery here.  prices are up and I am not getting any younger.  Now may be the time to take some profits and slow down a bit.   I have been receiving requests for info.  If you send me your email, I will respond with a pro forma spreadsheet. 

Thank you. I acquired the homes between 2013 and 2017. It was mostly a combination of luck in timing, with a pretty healthy dose of hard work.

Tobyhanna PA  Pocono Country Place and pocono Farm East developments

@Kenneth Mooney

@John Teachout the problem I’m trying to solve is that I’m not experienced in liquidating properties, my experience lies in acquisition.  I’m not trying to reinvent the wheel, but rather to mirror someone who has done what I’m trying to do. I also do not want to give these properties away.  

I have spoken to realtors.  While most of the decent ones own rental properties, they are by no means investors.  I have a NJ and PA real estate license and have listed 4 homes with the broker in PA where I hang my license.  He is trying, but he doesn’t have a machine behind him.  I am in a awkward position, since I have my license with him.  I really can’t list with another broker.  

I have spoken to Adam Stern from Strata and had them listed on Renters Warehouse.  Adam spent our entire conversation telling me how little my properties were worth and Renters Warehouse isn’t licensed in PA so they couldn’t advertise.  I am not really looking to trade profits for easy.  I don’t mind the hard work, unfortunately I just don’t know what hard work I can do, other than disrupt a paying tenant base and hope that a buyer comes along.  My gross rents approach 80k a month.  At current market values I lose the value of a house every 2 months.  I am looking to reach the audience that has an appetite for $700k in free cash flow 

I manage the properties myself.  I have quotes for property management averaging 7%.  

I wouldn’t consider financing.

I had a broker do CMAs (BOP) and the portfolio has a break up value approaching 8 million. We have 4 homes listed in the MLS for prices ranging from 150-240. Heavy traffic but no offers. Listings about a week old. There is literally zero inventory. The cap rate is approx 9%

Unfortunately that is the exact case in the Poconos.  The tenants dig in and keep paying rent but don’t leave.  Eviction has been the only option.  Evictions have been frozen and when they start again, I fear the courts will be clogged for years.  At least now my collections are at 98-100% once the eviction process starts they lose all motivation to pay.  And, as an aside, 26 of the 57 homes are Section 8.  Don’t get me wrong, the rents are food, and my tenants take good care of the homes, but they have zero motivation to be accommodating.