All Forum Posts by: James Byrd

To piggyback off everyone else's comments in this thread: I'm an investor/agent in Destin, and appending "Rental Projection" to a listing absolutely does not tell the whole story; it's a common tactic and, quite frankly, standard convention down here. I can go to www.airdna.com like anyone else and "project" gross rental income, but that's precisely what it is: a projection. At the end of the day, a property's performance comes down to the operations of the property. There are 2/2 condos down here clearing $50K while there are 4/4 houses with pools with sub-$50K. The STR game can be extremely lucrative, but someone has to do the work. Either you self-manage and convert your efforts into revenue -or- you pay someone else to manage the property. It's not difficult, but it does take some systems! Feel free to PM me anytime! God Bless!

@Louis Zameryka if you're considering a beach STR, and there is nothing familial tying you to Gulf Shores, I think you'll see better performance year-over-year in Destin. The density of vacationers down here is second to none. You'll stay fully occupied for longer in the panhandle. And realize that "Destin" generally extends east into Crystal Beach, Miramar Beach, Sandestin, 30A, Rosemary Beach, and I'd even consider Panama City Beach as an up and coming opportunity!

Any of these gentlemen in this forum are investor friendly agents. We’re all in the game!

@Villy Ellinger PM’d! 😎

@Dev Paul Those hybrid models do exist. In fact, my wife and I are starting a business for that precise market. Some refer to it as a “professional co-host”, but we look at it as a targeted out of town investor model. We handle the groundwork and the owner handles guest relations. If you’d like more info on our start up, feel free to PM me!

@Dev Paul come on in! The waters fine.

As @Matt "Roar" Gardner mentioned, your property management gameplan can make a significant difference in your ROI. Expect the corporate giant managers down in the panhandle to stick you with 22-25%. Most of them overpromise and under-deliver.

I’m not familiar with Myrtle Beach, but I see a lot of people discuss STRs with a “nightly rate” comparison; IMO, it doesn’t really tell the whole story nor is it useful when looking at STRs. The traffic in the panhandle is extremely seasonal! My personal nightly rates can be different by more than 300% depending on the time of year. The tough part is finding an agent/investor who can provide you with accurate annual earnings. Because Destin/PCB revolve around these income generating properties, most will list with annual performance numbers.

I think a more useful metric to compare STRs in our seasonal market is the “peak season nightly rate” (July); that figure can set a generalized multiplier across the other month to get you close.

And of course, if you’re at 100% occupancy in June/July, you’re not charging enough! 😉

@Justin Manges @Matt "Roar" Gardner nailed it. The occupancy (oppo of vacancy; more semantically correct IMO) rates are very seasonal in the panhandle. May to August are the massive income generators then you should be willing to open your property to longer term snowbirds (retirees north of the Mason-Dixon Line); it's not prescriptive but a proven technique. Our property already has a Canadian couple booked from 01 Jan to 28 Feb 2022 at a reduced rate. I prioritized known occupancy over piecing together STR tenants in the "off-season".

Are you looking to buy in Destin? The value is there, even in this Nationwide swing in prices. I recommend @Matt "Roar" Gardner or myself for your purchase needs! Feel free to PM me!

@Matt "Roar" Gardner thanks old friend!

@Ben Thompson PCB is, in my opinion, is the next big metro for growth. First, your dollar will go much further there than moving westbound along the coast into Destin. Second, the city’s recent efforts to rejuvenate the tourism and detract from the spring break party scene has been laudable. Third, the economic opportunity is about to spike as Lockheed Martin brings in 72 airplanes to Tyndall AFB. Feel free to PM me if you want to set up a call! 🇺🇸

@Rodney Turner AirDNA has a “rentalizer”. You can pay for a Gucci product with lots of charts and colors...honestly the default income it spots out for free is probably ballpark. But like Zillow, the algorithm isn’t perfect. And if it’s a new build, it may not be able to generate?

PM me. I’d be happy to give you my $0.02

I concur with @Charlie Cameron. I'm also an active agent / investor in Destin, and my personal STR is performing well. As I analyze additional deals, I've found that the traditional LTR 1% rule is still a very solid means to make an initial assessment. The key to this approach is retrieving a very accurate number for Gross Income. There are pockets along the Emerald Coast that perform extremely well. And then there are other spots that seem to flail. It all depends on your long term goals, of course. Like @Charlie Cameron alluded to, some of the best equipped properties come at high HOA expenses.

As an example, if I bought a condo for $350K, I would want the condo to generate $42,000 for it to be considered (1% of purchase price times 12 months). If I can confidently expect those numbers, then that might be a deal worth investigating. Of course, in today’s market of hyper-appreciation (not a long term indicator of performance, IMO), even $35,000 works. 

As an aside (and opinion 😆), If you’re targeting the Emerald Coast, proximity to the water (specifically the beach) is going to exponentially increase your returns. Its why people flock here by the thousands every year! Hope this helps.