All Forum Posts by: Dan Lucchesi

Quote from @Louis Louisius:

Quote from @Josh Young:

@Louis Louisius

#1 - Increase your minimum length of stay.

#2 - Lower your rate during the week.

 but won't this decrease my ability to book weekends?? 

Extending the minimum stay could lead to fewer bookings, and you would need to experiment with that to find out for sure. I think the most important one is that your weekday rates need to be lower than your weekend rates. I’d say that’s very important.

As others have said, there are plenty of lenders that can finance STR's with proved out (6-12 months) of income. However, there are also some (much fewer) lenders that can finance STR acquisitions based upon pro-forma STR rent analysis. It's basically the same process as how a lender can get a pro-forma of long-term rental analysis from the appraiser, but using STR income instead. This would be a Debt Service Coverage (DSCR) loan. You'll want to call around and be very specific about what you're looking for. Alternatively, you may be able to qualify the loan using a more conventional LTR rental analysis, even though your investment strategy will be STR. Just make sure a lender doesn't have a LTR lease as a condition of financing.

Quote from @Jenny Kao:

Hi all, I'm a newbie to real estate! Currently, I'm looking to buy my first rental property. I'm looking at single family home (3B2B) or condo in either AZ or CO. However, most single family home price seems to be out of my range (low 300) and condos all have high HOA fee, which I'm not sure down the road if it's worth it. Should I be looking at other states instead? Seems like there are a lot of experts in this community, therefore just wanted to get some thoughts. Thanks!

Jenny, I am a realtor and investor. I have done conventional long-term rental (LTR) twice before and ended up selling both of those. We have owned a very successful short-term rental (STR) in CO for several years and are under contract to acquire another in New Mexico. Our net cash flow is far greater under the short-term strategy and we have a system that works for us. Focusing on vacation destinations without heavy-handed STR regulation is the key. Denver, for example fits that, however, they have some difficult regulations around STR, but many of the surrounding metro communities are more easy to work with. Do you have the tools to analyze potential opportunities when they arise? Are there specific markets in Arizona or Colorado that you're specifically considering? And, are you focused on LTR or are you considering STR also?