All Forum Posts by: Daniel Netzer

Quote from @Michael Kazalas:

Hi Rachael! Do you have desired cashflow % for the STR and are you going to outsource property management or self manage?

Hi Michael! I want to self manage, ideally. I would love a cash on cash return of about 20%.  I know that’s not always easy. 

Quote from @Nathan Gesner:

Quote from @Cody Zucker:

I respectfully disagree with you. I don’t think it’s just a “sphere” issue or echo chamber.

STR's have become more and more oversaturated over the last three years. Guests have more choices due to this over saturation so it's harder for Hosts to stand out. Additionally, budgets have tightened since a lot of the free money dried up and the fast rising inflation has caught up with consumers causing continued downward pressure on prices and occupancy. In addition, property prices and higher mortgage rates have squeezed margins due to higher monthly carrying costs. There just simply isn't as much money to be made for the average Host in 2024.

This increased competition, lower rates and occupancy, overly optimistic underwriting and lower travel demand post COVID travel boom does warrant a reasonable label such as “Airbnbbust”.

TLDR

The environment has fundamentally changed and operators have had to do a lot more than simply list a property to profit heftily. It’s become a different game, in my opinion.

I’m not suggesting all people should quit, but some might consider it if they don’t want it be in the hospitality business or work hard to make great cash flow.

@Daniel Netzer what kind of salt water hot tub do you have? interested. I see people talking about the maintenance - but there is a difference between infrared saunas and steam saunas - in general the infrared should have much less issues (no water plumbing!), and it is thought there are benefits to infrared as they give you a "deeper" heat. 

Hey Daniel,

20 Minutes from Bach is a great location and a sauna would be a great amenity. Especially one of those barrel saunas with a glass wall if you have a view into the woods or something. Pretty sure THE STR data man Kenny Bedwell said a sauna has a huge ROI for STRs. As long as you have great insurance, the above comments about liability are a bit over reacting. Everything on a property has a risk. I had a house up on West Campbell Rd, wish I would have gotten that STR license before Bend changed the rules :)

Quote from @Ray Hage:

Hi, as an investor, it is a major risk for sure and I am a bit worried. That being said, I still plan on investing in Florida (I have properties in Fort Lauderdale and West Palm Beach). It could be the one thing that destroys the FL market. Do I think that will happen? No but it is certainly a possibility. More likely, it will be lower profitability in the future. That being said, I have faith in this market and people are still moving here and need somewhere to live. So on a 1-10 scale, my concern is in the 3 range. We have to see how it plays it out over the next couple of years.

Great answer I’m not to worried about insurance 

Quote from @Daniel Netzer:

Quote from @Michael Baum:

Ok, so there might be a market @Daniel Netzer.

My wife and I were just down there a couple of months ago checking out the area again for another STR. It is a tough area now that Bend has banned STRs.

Not banned, but heavily regulated, indeed. I secured the last officially permitted double STR permit on a single lot right when they made it illegal. A main house and guest house that I can rent out separately. Wish I scooped up more in 2020. 

Well shows you how much some local realtors know. They told me that Bend had banned all new STR permits inside the city.

The prices are quite high so we couldn't find anything that would cashflow. There was one property we thought we could make work in Deschutes Landing, but it needed so much work that we passed.

Ok, so there might be a market @Daniel Netzer.

My wife and I were just down there a couple of months ago checking out the area again for another STR. It is a tough area now that Bend has banned STRs.

As someone who knows the area @Daniel Netzer, I could see it adding value in the winter. All my compatriots who have responded are warm weather folks! :)

How close to Mt Bachelor? I assume you are outside of Bend.

It will be a chore to keep it up. You want to make sure you have some kind of rider in your insurance policy for it as well. Call your agent and get the skinny on liability.

I would check there in Bend to see if there is a maintenance company who could take care of it on a contract. See what is around. That will keep the uptime high and maybe make it make more sense from a maintenance perspective.

Have you checked on other rentals in your area? Do any of them provide a sauna?

Pass. And, please do an online search on the pros and cons of having a sauna in a rental property...it's very telling. The maintenance cost alone is reason to pass but all the risk of dehydration and other health issues is another reason not to move forward. I also don't see the ROI for adding a sauna; it doesn't appear to be something that renters/guests appear willing to pay more for - like a hot tub does. It sounds like you already have a great property as it is - and over-improving it doesn't gain you anything. Maybe it's time to buy another one and grow your empire?!!!