All Forum Posts by: Jon Martin

If you buy in at the right price then you can better hedge your risk. By now there should more price stability than there was 1-2 years ago, so if the numbers work it can still be viable. Look for 20% revenue to price ratio and properties with unique characteristics like views, boulders, pools, proximity to cool stuff etc. Avoid the boring 3/2 in a residential neighborhood. 

Palm Springs has high entry prices and tough regulations. 

JT is less regulated and not as expensive but not cheap either, especially if you need to add a bunch of amenities in order to compete and be "instagramable". Still a viable market that won't go anywhere because of the sheer numbers of people within a few hours but you have to bring your A game and bring the capital to match. 

Hopefully the one I am renovating right now. If I can at least match the most relevant comp, that has one less bed and bath and less amenities, I'll be at 33% revenue to cost basis. 

Look for markets where there is still some spread. They are out there, but you have to do your homework. 

While I agree with your rationale, there are some incredibly successful investors in the space who still call their properties “airbnbs”. It is what it is. 

Bringing your own linens is standard in some of the old school east coast beach markets, therefore the pre-OTA crowd is well accustomed to this. 

That said I would tell people that as soon as they book and make it more clear in the listing. 

Forgot we were doing NBA . . . Change mine to the gumpy super tall centers that do nothing but draw fouls 

Slip and fall artist guest who falls on their own **s, claims they are injured, and threatens to sue you unless to settle out of court. Also has pending felony charges for falsifying medical records, probably looking for funds to pay a lawyer. Happened to "a friend". 

Player comp: South American soccer players

Very common in Central America, usually distances from landmarks and other descriptors like what @Salvatore Ross mentioned above. Maybe just make something up? 

 Why don't you tell us how you really feel? 

I feel the same way as well. Every property in your STR portfolio is a property tax bill, a lawn to mow, a roof, an HVAC, and a thousand things that can break and go missing, often occurring in short succession after one another. Would rather have 3-5 properties that are top notch than dozens of mediocre units. I could even advocate for a single great property if it weren't for the risk of being shut down by a disaster or weather event, which is why I like the idea of a small handful spread between at least 2 markets.

I've also come to the conclusion that you are either 1 bedroom or 5+ bedroom. 2-4 bedrooms are the squishy saturated middle. 1 bedrooms make good income relative to purchase price, but a 1 bedroom SFR (assuming you can find one) will get killed on the recurring expenses that don't scale down like WIFI/Cable, STR insurance, lawn care etc. I see this with my 2 bedroom that may as well be a 1 bedroom because 85% of my stays are 1-2 people, and many of the recurring expenses are about the same as my 5 bedroom across town with an ADR 2-3X+ higher.

Whereas if you have a 8-20ish unit hotel, now you can capture that market segment at scale on one property and spread out the fixed costs. Plus you are also at a size where you can rent the whole place out for special events.