All Forum Posts by: Ian Tyndall

It is usual business practice in Morocco for the down payment to be 50% or more.

My target audience would mostly be US, UK and French travelers.  There is a lot of increasing demand for this market as people chase unique destinations and lower costs.  A non-stop flight to Marrakech from Washington Dulles will open by the end of the year on Royal Air Maroc which will open up the market even more.  It is only a 5 hour flight from IAD.  The current flight goes into Cassablanca and requires a connection.

Hello everyone!  I am considering expanding overseas and looking at a property in Marrakesh, Morocco, and would like to your thoughts on this property.  My offer has been accepted, and I need to decide if I go through with it this week or not.  Here is some information:

4B/4B Riad in Bab Doukkala (just meters from the Medina), with pool and highest rooftop view in the area.  Comes fully furnished.
Purchase Price:  €280,00
Down payment: 50%
Cash to close: €165,422
Loan: 5%, term 5 years
Monthly PITI: €2,962
USD to Euro is $0.91 currently, but will probably strengthen in the next couple of months

I used the enemy method of comping other Airbnbs with 4B in the same neighborhood.  I think that nightly rates could range between $214 - 320.  Occupancy looks pretty good for the area with May being about 40-50% booked.

If I assumed the worst case (lowest pricing and 40% occupancy, the monthly rents would be $2,611 and annually that would be $31,330).
Most likely case is $250 per night at 50% occupancy.  Monthly rates would be $3,813 which would be $45,750 per year.
Optimistic would be $320 per night at 50-60% occupancy which would range $4,880-5850 per month, and $58k-70k per year.

I know that the rents are in $ but I would collect rents in € because the loan will need to be repaid in EUR, and I will want to limit my FX exposure until I get the loan paid off.

Thoughts on this deal?  My wife is nervous about it being so far away from our comfort zone.

Jared,

Message me the details of your deal, and I will be happy to look it over and offer my ideas to help.

 100% agree with Luke

Yes, that is how I read their statement. Meaning their gross revenue is higher than the $11k and after you remove the fee and 3rd party expenses the net income is $11k. 

Out of curiosity are they trying to get you to compensate them for some portion of those future bookings?

 maybe you can find someone local with excess furniture to deploy (like a staging company). It would cost between $15-20k for me to do it remotely. 

All,

I am thinking of purchasing a 3+ bedroom home or condo in the ski area of Wintergreen, VA. This year the ski mountain was shut down early because of lack of snow (I guess California got it all this year), but I figure the weather cycle will bring back snow next year. This might be a good time to buy and the ski season would offset the slow seasonality of my other rentals.

Is there any advice for this area, and is there anyone interested in exploring a partnership on a property in Wintergreen?

Yes, I like to travel for leisure with my family and STRs are a great option for that style of travel. My properties are all geared for families, and are places that I enjoy staying at with my family.