All Forum Posts by: James Thompson

@Kerry Baird that’s funny, that property did come up in one of my searches last week!

This house does have potential but will need a lot of updates (and money), both in the immediate and long term future in order to make it what I am looking for. These updates kill the ROI in my calculations/projections.

@Tyler M. can you send me some info on that option? 

Agree completely with Gatlinburg/pigeon forge!

Also thinking Myrtle Beach and 30A?

What are everyone's thoughts on the best STR markets to invest in now that will experience the most growth and appreciation in 2025-26?

@Travis Timmons completely agree! Part of why I wanted to post this topic is many people don’t even consider taking the hit on taxes, and instead feel forced to jump into a bad situation. Nobody wants to pay more taxes but I am concerned with current market conditions and really appreciate everyone’s insight.

@Joseph Chiofalo yes I would be putting 50% down - what rates are you seeing currently? Would be fine with a 10 year arm or 30 year fixed product.

@Ryan Cleary I tend to agree with your thoughts - the ease of management/no maintenance was why I was looking into the 3bed+ luxury condo market.

I would prefer to get a STR in an area that we like to vacation a few times a year, using the revenue to subsidize the cost of ownership (which is why appreciation potential is more important to me than monthly cash flow).

Finding a newer luxury home that is walking distance to a nice beach in my price range has been challenging. Been finding a lot of older/smaller homes that either need a ton of rehab (which I don’t want to do right now), in a flood zone with crazy insurance costs, or far from a beach.

@AJ Wong my prior STR experience was with a home that rented well, but was getting to the point where major upgrades/renovations were going to be needed in the near future to keep it in the "mid luxury" market. As an out of state investor, I made the decision to pull my equity out as construction costs in the area are incredibly high with limited availability right now.

I completely agree that luxury rentals would be my prime target for a 1031. Appreciate the recs!

@Samuel Boyd what are some of the best buying opportunities in my desired price range in your opinion? I’ve looked at the Melbourne area and would be happy to connect offline to learn more.

I go back and forth between a luxury condo (pros are easier to manage, less maintenance: cons high HOAs, limited STR rules) or a newer built home (pros are larger space, more private, higher appreciation potential: cons higher insurance, more maintenance, more upkeep, more services like lawn care/pool cleaners/etc needed). I've found older homes in flood zones (while location may be great) have insurance and tax costs that might be in the $30-40k+/yr range and destroy returns.

Looking for advice on best strategy/next step following sale of a home we owned in Florida as an STR.

Background: Sold 3bed/3bth home, have approx $600k equity. Funds currently being held by QI. 

Option 1: 1031 into another STR, target price $1.1-1.4m. Would want min 3 bed/3 bath, located in FL/TN/SC/NC/GA. Either close to water/beach, or in scenic/mountain area. Have always owned homes but would consider a condo with an amazing view or unique features. Familiar with FL and have been looking in Tampa area, Naples/Ft Myers, 30A, Space coast, and Jacksonville areas. Numbers in FL are not looking great with insurance/taxes/HOA fees/etc for cash flow but willing to focus more on just breaking even (or close to even) and having significant long term appreciation.

Option 2: take the cash, pay 20% long term capital gains and wait as market continues to dip for a prime buying opportunity.

Would greatly appreciate insight/advice from those much more experienced and knowledgeable than myself. Thanks in advance!