All Forum Posts by: Cody Dastrup

You can still acquire a pool property here in San Antonio TX, under 300k. Revenues are roughly in the 80k+ range, most likely higher as we summers are extremely hot! Demand has historically been high for travel with the theme parks, weekly military basic training graduations, medical district, and historic downtown draw (Alamo, Riverwalk, etc).

Hello! @Cody Dastrup I'm in Utah too and have one property that I'm currently living in but am thinking of buying another and turning this into a STR. The market in SLC seems a bit saturated though for STR.

I'm curious, are you looking out of state because the numbers aren't working in Utah? 

An $800k property that grosses $100k is a 12.5% rent ratio. That's barely break-even after CAPEX, maintenance, a fair amount to pay yourself for property management, etc on some of these large properties.

My last purchase in Lake Havasu was $705k plus $160k remodel and furnishing, will do $160kish a year gross rents(I was hoping for $240k but market has slowed down bigtime).  My last purchase between the Palm Springs / Joshua Tree area was for $800k and $120k remodel and furnishing, will do $220k a year gross rents (I was hoping for more like $300k but the market has changed bigtime, like many).

These larger properties have more overhead, I would encourage you to set your sights higher, especially in this market environment of diminishing prices and lower occupancy.

Sounds like you have properties that cost $630k purchase (plus some upgrades, furnishings, furniture, etc, expenses) that gross $8k a month.  I congratulate you on getting started!  But there are better numbers to be had.  Have you taken a look at some smaller hotels or motels, or similar?  Homes are expensive these days, the prices in hospitality have been beaten down after COVID, given their usual financing methods.

While I know short-term rentals are all the rage, there are small businesses to be bought with much greater returns, that don't necessarily require more time. Home prices have doubled in the last few years, and interest rates nearly doubled as well, which means your main underlying cost on a STR has basically quadrupled. While occupancy and rates are declining vs. the last couple of years. You either need to get REAL good at this business while preparing to make less money, or find a new angle. It's a new reality out here.

Hey I live right up the road from you, hello fellow Utahn!

Smokies could probably do that. I've got one in Orlando could do that pretty easily, especially if you're willing to put a little money into the property. There are some hidden expenses in Orlando compared to other markets though (high Fl taxes/ins, high HOA in the resort communities, high utility bills).

$800k-$850k will get you an 8BR in a resort community that projects out to around $100k.  Add another ~$50k-75k of theming to the property and you could increase that revenue number to somewhere in the $150k-$180k range.

When you say revenue, you are saying gross income?

If so I think the more important number is what you keep or net income.

Try putting properties from different areas and price points in a spreadsheet and see were the best ROI is.

Heavy tourist towns like Branson or Pigeon Forge would be places to look.

You can do that in the smokies for sure. Love where your head is at! 

Sounds like a sweet deal, but yes like you alluded to you will likely have trouble financing it. Most lenders don't like dealing with manufactured homes in general. Fannie Mae allows single-wides only if they are less than 10 years old, and even then, it will be hard to find a lender willing to lend on it. 

My suggestion would be to call around some local community banks and credit unions. 

Whats up . 1st of all, congratulations on your work thus far! Awesome accomplishments. So there is a few things to consider here you need to be careful of.

1. Your single-family residence of 4/2 is not a commercial property. So your "permit" or added income doesn't provide actual appreciation value. The reason why is because appraisers work on a comparable sell model for ALL residential homes (1-4 units), not an income/caprate model like with commercial properties.
2. However, that doesn't mean someone will pay more for it because it has an STR Permit. Someone might seem more valuable because of that but if they use a loan that still depends on the lender and appraiser, and they don't take into consideration income or permit in its value.
3. Trailers are hard to get financing for. you have to find a mobile home financing entity or something like that. You should offer if the seller is willing to carry the note on the property.

@Cody Dastrup You could try asking for owner financing or bringing in a partner or working with a private lender on the deal. One thing to look into is the maintenance and upkeep of the mobile home. There could be items that need to be repaired and/or have deferred maintenance. Hope that helps!