All Forum Posts by: Brandon Blahnik

Hey @Brandon Blahnik! 

I would recommend using Pricelabs when trying to figure out any STR insights. They have made it super easy on their platform to seamlessly make a dashboard of the area you are targeting and then generate comps sets that are based on your competition (ENEMY method).

If you need any assistance with doing this please don't hesitate to reach out and I can give you a quick tutorial on what to do! Otherwise, Feel free to reach out if you ever need anything! 

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Josh 

@Brandon Blahnik there's a new listing on Mt Hood ~ reach out to me. 

It's a great "step 1" to identify a few markets you might want to search in. Keep in mind though that higher gross ROI markets are often that way for a reason: sketchier regulatory outlook, lack of quality contractors in the area, etc. Basically harder to do business. Many long-distance investors prefer the Smokies, FL beaches, etc for this reason even though average yields are lower. But this software will certainly open your eyes to all of the places you could invest.

Also recognize that the individual deal matters way more than market averages. If you were starting a restaurant you wouldn’t necessarily ask “what are the best restaurant markets in the US to invest in?” … so why do that with hospitality assets? Go look at Marriott’s portfolio across the US … it’s not like every Courtyard is clustered in 2 or 3 markets … they are literally everywhere. And I’m sure many of their locations in what you or I would consider “the middle of nowhere” are killing it. That should tell you something.

There is such a large disparity in performance across STRs even within a given market and home size/ type … that should also tell you something. Recognize that it is the hospitality business contained within the real estate you buy that matters most. A lot of us here on BP are RE investors and tend to downplay the hospitality piece - don't make that mistake. And in the same way that paying too much in rent can sink a restaurant, paying too much for an STR property will kill cashflow.

Anywho- long winded way of saying it's helpful, but don't choose a market solely based on gross ROI averages when we know performance can deviate significantly from averages based on how you design/ manage

 Computer algorithms are useful for a general understanding of a market, but I wouldn't rely on them for a detailed analysis. The difference in performance from Home A and Home B may look the same to a computer, but they can be totally different based on views, amenities, decor, and many other factors a computer cannot possibly assess.

It's a great "step 1" to identify a few markets you might want to search in. Keep in mind though that higher gross ROI markets are often that way for a reason: sketchier regulatory outlook, lack of quality contractors in the area, etc. Basically harder to do business. Many long-distance investors prefer the Smokies, FL beaches, etc for this reason even though average yields are lower. But this software will certainly open your eyes to all of the places you could invest.

Also recognize that the individual deal matters way more than market averages. If you were starting a restaurant you wouldn’t necessarily ask “what are the best restaurant markets in the US to invest in?” … so why do that with hospitality assets? Go look at Marriott’s portfolio across the US … it’s not like every Courtyard is clustered in 2 or 3 markets … they are literally everywhere. And I’m sure many of their locations in what you or I would consider “the middle of nowhere” are killing it. That should tell you something.

There is such a large disparity in performance across STRs even within a given market and home size/ type … that should also tell you something. Recognize that it is the hospitality business contained within the real estate you buy that matters most. A lot of us here on BP are RE investors and tend to downplay the hospitality piece - don't make that mistake. And in the same way that paying too much in rent can sink a restaurant, paying too much for an STR property will kill cashflow.

Anywho- long winded way of saying it's helpful, but don't choose a market solely based on gross ROI averages when we know performance can deviate significantly from averages based on how you design/ manage