All Forum Posts by: Brian Kragerud

Very well, thought so...thanks for the reply.

Not sure why this was placed under the Classified Forum as my intention for to be listed on the STR Forum where I spend all my time

Thanks John for your reply and hint of a possible solution to a disaster for this person. In REI, if a person can hold on the future will rescue a bad purchase.

Just as well, didn't really want to stir up a slew of responses anyway. I am sure there are deals all over the US in every city where people are experiencing the same results. This opens the doors for us who are waiting patiently for the right timing to get in to STR.

I see your in SC, I have done extensive RE analysis in Smokey's and NMB, thinking to buy cabin then a beach house to get started and then perfect the process to add some Co-hosting to expand cash-flow and scale portfolio into more STR.

Kindly welcome your thoughts on these markets best to get started in the REI STR business? Can add in some BRRRR and flips in the plan.

https://www.redfin.com/TN/Sevierville/3825-Glenview-Way-3786...

Add additional costs for realtor fees, concessions, and possible reduced price plus all those upgrades. 200k loss in 2 years. Ouch! How many more are out there and counting.

Another 9 months and I can start kicking tires to buy...Patience is a virtue. It is frustrating at times to be waiting though.

Do remember when thinking to MTR to calculate in 7 days and less avg stays to qualify for material participation when self-managing STR for your tax year deductions as a business against your W2 wages. Cost seg and accelerated depreciation helps in lowering taxes. House passed bill to reinstate the 100% AD and make it backward to include 2023. Hopes it passes and goes in effect. CPA stating to hold off filing until April. This works best for high earners.

@AJ Wong,10% CoC on 10%+ gross revenue of property value (purchase price) we need 5% rates again. Probably why I have trouble sizing up a deal that works today, and I set my ROT is worth more than 10%.

Sell it now or take the risk things could tighten up even more over the next few years. Make the improvements and sell and walk away breakeven. Start looking for the next deal or park it in short-term treasures 5% and ride out the storm, better to have funds to deploy later than stuck underwater and under funded when opportunities arise. Good lesson what not to do. Your father will appreciate the decision and everyone can sleep better.

I am seeing wider cracks forming in the NMB STR market for sale of existing and not only in the SC NMB areas. Without posting the listing, here is the breakdown of discounts. This property is across the street from the ocean with slight views of the water. 4b4b. Calendars not booking much better.

12/1/2023	Price change	$379,900-2.6%$281/sqft
Source:

11/7/2023	Price change	$389,900-2.5%$288/sqft
Source:
10/18/2023	Listed for sale	$399,900-10.3%$296/sqft
Source:
6/21/2022	Sold	$445,900-3%$330/sqft

Buy STR as STR, if not penciling out, invest elsewhere.

I go with john, make this one work first. The future is dark.

Since TN is no state tax then mute point for me on non conforming state.