All Forum Posts by: Brett Deas

25% is acheviable, but not easy to find. Our target is 20% and above so not too far off from yours. 

When searching for deals I find it best to go in the non-sexy markets. So not Florida or the Smoky Mountains. I would look in drive-to vacation markets. Often times there is a significant amount of vacation rental infrastructure in place (cleaners, handymen etc.) but you can still easily stand out and have a killer place. 

Hey Mike, Can you share your listing? I won't able to provide accurate advice without seeing it first.  

I have over 5 million in debt on my properties, it doesn't keep me up at night. 

I think you can spend a lot of time mitigating the risk, but it also requires some level of ignorance. It takes extra risk to make RE money, and we all have to be willing to deal with that. 

For the LLC, if you get debt on your properties, the lenders will almost certainly want it in your personal name, so your best protection is buying a great deal.

We are in the process of building 5 unique STRs in the cliff faces right now. 

The top things I wish I would have/could have added are specially designed pools & rooftop hangouts. 

I think if you are in a densely populated area, rooftop hangouts are going to blow your place up! 

I also think designer hot tubs are the way to go. Pretty much every place has a hot-tub, so you need to make yours stand out some how. 

If it's not in the contract, you don't have to do it. 

But... Think about it from the other perspective. Without a PG, why would they give you financing? You can run the place into the ground and run and all they get is a place they need to fix up and sell. And, your not going to default are you? In my opinion and sensible investor should not be worried about a PG because you shouldn't be defaulting anyway. 

Go to a meetup, everyone is looking for capital, you will probably get more leads than you want to have lol. 

Pricelabs is great for pricing, but can sometimes jack up the prices way to high. So be sure to check it a few times. 

I think Hostway is the best platform you can get for the price. It costs way less than others and has almost all the same integrations and automations availible for you. 

For thermostats we use Ecobee, they have great remote access options as well as a good guest interface. I haven't shopped these at all so I don't know how it stacks up to the others, but it works great for my places. 

In the south metro area, the separated basement is a very popular strategy. The rules and regs aren't established as far as ADU's go so you don't see enough of them down south. There is a huge number of small unit STR's in the metro area so I would definitely go MTR (also considering regulations) as long as you are in a good area. Some cities/burbs have very little supply right now so it offers a great opportunity.

The first and arguably most important question I would ask is occupancy %. If they are 90% occupied and not Cash flowing then that is a huge no for me. 

I have bought 2 small mom & pops like this already in 2023, and both didn't have detailed/great financials. It takes a certain level of risk tolerance to do it, and a high level of local market knowledge. If you know that improving the site can bring in 50$ extra a night, then you can incorporate that into the underwriting. It is hard because most of these places take a unique set of eyes and thought. Feel free to reach out and I would be happy to take a look at it and see what I think. 

The lower the price the better. Yes smaller margins, but safer and easier to sell.

I work with a few flippers in the metro area and the most successful one (by-far) flips alot for cheep condos. There are smaller margins, but also less costs because they are so cheap, and they within the week being on market. There is less risk because they don't have crazy high holding costs and repair bills. 

Feel free to reach out if you want to talk more.