All Forum Posts by: Brian Barch

Quote from @Ryan Moyer:

Quote from @Brian Barch:

I have no doubts there are people with pool cabins that are killing it. 

For me personally, I try to stay away from anything that feels like it could even remotely be considered a fad that’s tacky at a future point in time.

It’s also important to me to own properties that aren’t simply built to be a rental, they could also double as a permanent place to stay (ie I wouldn’t personally build a dome/yurt/cliff dwelling/etc. 

even now, when I see the Orlando places with extreme themed rooms….on one hand I get it…I’m personally turned off. Trendy, tacky, I would never want to live there.

I think you have to stick to your niche and what you are comfortable with

 Those neighborhoods in Orlando barely even allow full time residents.  They're all vacation rentals.  They don't even have a mailbox.

To each their own, of course, but the notion that a place needs to double as a primary residence or LTR is out dated, and just gets you into poor STR places (metro markets, etc) that won't have longevity.

Without the vacation rental aspect ANY cabin in the Smokies is only going to be worth like 30% of what it currently costs.  It's not a realistic fallback plan.  No one is buying a 4br cabin in the Smokies to live in themselves and no one is paying $8000/mo to LTR it.

I think you misunderstood my point. I’m not speaking of the strategy that an STR must also work as an LTR to be viable, I’m simply highlighting that I also like to use my own STRs as my vacation rental, and so to me, I don’t like them to be tacky or overly trendy.

To me they aren’t comparable. As a parent of 3, if I have to stay in another city, and my choice is:

1) stay at a sterile, boring hotel with all family in one room for $150+

Or

2) stay at a beautiful, unique place with 3 bedrooms and no neighbors, and potentially things like a view, hot tub, etc for $200…..

It’s no comparison. Not even close

Quote from @Mike Anderson:

Quote from @Brian Barch:

I’m in the N GA mountains, but the quieter eastern side near N/S Carolina.

We Acquired in late November 22.December was 22 days, January 18, feb at 17 currently. We are very happy with that performance as it’s slow season in my area.

You must be in Rabun area... I live there and as a resident i can tell you its defiantly been slower this year, just less people on the weekend. Even in December.

I’m on screamer mountain in Clayton. I’m doing fairly well, but have heard the slow complaints from some peers

I have no doubts there are people with pool cabins that are killing it. 

For me personally, I try to stay away from anything that feels like it could even remotely be considered a fad that’s tacky at a future point in time.

It’s also important to me to own properties that aren’t simply built to be a rental, they could also double as a permanent place to stay (ie I wouldn’t personally build a dome/yurt/cliff dwelling/etc. 

even now, when I see the Orlando places with extreme themed rooms….on one hand I get it…I’m personally turned off. Trendy, tacky, I would never want to live there.

I think you have to stick to your niche and what you are comfortable with

I’m in the N GA mountains, but the quieter eastern side near N/S Carolina.

We Acquired in late November 22.December was 22 days, January 18, feb at 17 currently. We are very happy with that performance as it’s slow season in my area.

Quote from @Jeremy H.:

Quote from @Luke Carl:

oversaturated is a myth. so much so it's not even a real word. 

 You wouldn't agree that bookings are down for a lot of places due to the massive increase in supply over the last 2 years? 

I think a lot of places have increased in supply A LOT over the past couple years. It's definitely a lot more competitive than it was 3+ years ago. Returns are going to be lower. Prices are going to be higher. The STR market is a lot more established and "supplied" in a lot of areas. This is just what I have seen.

I'd go so far to say that you very well may NOT generate more income on an STR compared to a LTR property. I had a buddy that bought in PCB (100k downpayment) - net's about 500/month and did well over 75% median for net revenue. I have a cheap duplex here that nets $700/mo ($30k invested). Is it worth the headache and extra time? I'm not sure

I think it can be good for the right people - but I think too, STRs are a shiny object with a lot higher risk. Quite a bit more work, if you choose to self manage over a LTR as well 

 As real estate investor Jason Hartmann always says, “compared to what?”.

If one is comparing to 2021, then sure. But REVPAN is up over pre pandemic levels still. Demand is up, although supply is up more. 

Also, if one is comparing interest rates to historical lows of sub 3%, then sure.

I advise someone to take a long term view of the investment. Can you find cash flow today? Yes. Do you have the ability to refi in the next decade while raising rates? Yes. 
is any of this as easy as 2 years ago? No, but that was a historical anomaly in a dozen ways

You have several options here: 1) Airdna - note, this includes cleaning fees and be wary if it's pulling comps with mountain views and waterfront. 2) Awning.com - does NOT include cleaning fees, and allows you to see comps. 3) find a good local realtor who specialized in the STR market 4) talk to property managers 5) join local STR facebook groups and ask for some advice, revenue benchmarks, etc 6) enemy method/airbnb. - note you can't distinguish between guest stays and personal stays, as is the case with many of these methods. When all is said and done, you should be able to get a decent understanding of a conservative estimate

I’m an investor in the north ga mountains. I’ve seen that cabin before! (No worries, we aren’t buying again for a bit.)

honestly, the calculators are all a commodity at this point, and 3/4ths of the line items are known values.

I would join some Facebook north ga mtn groups and ask for cleaner Recs.Then get a few quotes so you know what you are dealing with. 
if it helps you at all, since i just had to get quotes a few months ago myself, we pay $59/mo for pest, inclusive of termite. We also pay $160/mo for full hot tub maintenance. $90 for a giant stack of fire wood cut and stacked (we don’t need monthly). Internet is $60/mo, and thankfully we only need yard care (no yard as we are on a mountain) maybe 2X/year. Cleaners on turnoverbnb were $140-$180, but we were able to find $90-120 when we actually talked to locals.

Happy to connect about the n ga mountain market if it helps you at all!

Keybee, awning, and guestable are all lower cost full service options to look into

Quote from @Sean Bramble:

I wouldn't normally recommend this, but depending on the how many resources the county is devoting to stopping STRs, you may be able to squeak by for a few years under the radar. Many areas have laws that aren't enforced at all... but then others come down hard on those who break them

I'd recommend making your renovation decision based on ARV instead of the ability to STR it, and then make the decision to STR it or sell it weighing the potential upside vs risks. If you decide not to STR, waiting to renovate until right before sale is probably the best use of resources.

I actually agree here. I think you need to feel out how involved the city is, and if there is a way to get approved. Some cities, you simply have to submit a request to be re-zoned.

other cities have outdated passive laws because they simply didn’t know what to do, full well knowing that people are going to bypass the ordinance with no plans of enforcement.