All Forum Posts by: Jon Martin

What @Michael Baum said . . . Which is really just a starting point. Keep in mind that this is a rural area with a lean labor pool and a long drive to the nearest home depot. Towns like that aren't exactly full of skilled labor and contractors waiting around for someone to give them work in times like this. 

Furniture: Optimize for ease of assembly, as in preferably none as much as possible. Especially anything with drawers. Cheap nightstands will cost you more with labor figured in than one that is already assembled, and will also last longer. Metal bed frames that fold down and a headboard you drill into the wall is much easier than putting a bed frame together and looks the same in the photos. If you have time and the ability to pick stuff up, buy high quality used furniture so long as it fits the look. 

Design: Hire a designer to consult on the overall look and keep you from doing something ugly or outdated. If you tell them "design my place" then it will cost you a lot because they will bill you for everything. Instead, have an idea going into it and ask for their input on what direction to go ad then you find the decor from there. After one design job you should get it and can apply the concepts elsewhere. Look for unique elements and touches of color that make photos pop. Make sure your decor fits the theme of the property and area. 

Finishing Touches: You should have a handyman and a cleaner already. They should be able to help with this. Make a punch list and let them bang it out. 

I’ve had my eye on Stuart for a while. Looks like it has great occupancy stats in the winter so it would offset other markets nicely.

What gives me pause are insurance rates. Easily $500-1000/month for an STR policy. Which I think is manageable, but if you ever need to sell that could be an impediment for your buyer pool, who will likely have higher rates at that point. Inventory is tough as well.

Heard good things about Savannah but regs are tough about where it’s allowed. Not sure about the other markets you mentioned 

Agree with @Andrew Steffens above, it ultimately comes down to the property, your goals and what kind of work you can put into it. Lots of properties work great as an LTR but not as an STR and vice versa. There is no better overall, only what's better for the situation.

Most STR owners avoid HOAs like the plague, for good reason. Even if the rules allow it now it can change at any moment. The only situations where I would consider it is if it is in a vacation area where numerous owners rent their places out and therefore have enough seats on the board, such as in Florida or the Carolina coasts.

Quote from @JD Martin:

Hell, they even make money on the float. 

I think you are talking about the fact that they collect payment immediately upon booking and don't pay the host until the stay? This gets to me as well. I am always getting emails from guests asking if they can pay later, and I explain to them that it is out of my hands. They are basically collecting interest from the guest off of the host's capital. 

Quote from @Michael Baum:

Wow @Kristi Kandel, there are some big insurance risks on that list! I would go nuts worrying about it.

 Yeah I was in agreement until I saw Tree House and Zip Line . . . . Cool ideas if liability wasn't a thing. Even the idea of bunkbeds bolted to the studs make me nervous 

Nice property! If you are talking custom purpose built in a great location, especially with construction and land costs from years past then yes, the economics are clearly working for you. My point was that pre-existing 1 bedroom homes that can do those kind of numbers are very rare, and those that do are very expensive because they are in great locations. I found a few 1-bed oceanfront condos on Kure beach that push mid-to-high $60s but those probably sell for half a million. 1 bedroom houses are rare in general. 

Much easier to find a 4-5 bedroom that can do those numbers than invest the time and cash into a new build. I agree with you on 7 beds under $500K being rare, probably more rare than 1 bedroom unicorn properties pulling $80K for that price. With equal revenue I would certainly rather furnish and manage a 1 bedroom. 

Quote from @Bryan H.:

That would be a $300 mean ADR (after fees/taxes) at 75% occupancy to get those numbers. Which for a 1 bed seems only justifiable in A+++ locations, and not something you are likely to buy into for less than mid-to-high 6 figures (minimum), at which point the revenue-to-price ratios no longer make sense. 

If I'm wrong, I would love to know where these magic markets are where I can gross $80k on a sub <$500K 1-bedroom property. Bonus points if actually compliant with prevailing local and HOA regs.

In addition to everything above (especially en suites) be sure to optimize the outdoor and fun space. Covered deck/patio, pool, hot tub, game room- preferably all adjacent to each other. Make it look fun and people will book it!