All Forum Posts by: Joseph Bafia

definitely don't need to look at in-state only, unless that's your comfort level.  Plenty of opportunity with bang for your buck in other cities.  As an example, my son is buying his first duplex in NC for $30k.  Will need approximately $20-$25k in Reno and will appraise likely at $75k and rent for $425/door or $850 total.   There are values all over and if you find the right team, long distance shouldn't be too scary.  With $200k-$300k, you can scale much faster in a city with better affordability.

We are in the Blue Ridge mountains of North Carolina.  We've had 1 cabin for a little over a year and have listed on both VRBO & Airbnb.  I'd say 95%+ is with VRBO, with almost no traffic or inquiries on Airbnb.  Now we also just purchased a 2nd cabin in that same market and listed on both platforms again.  Still more interest on VRBO, but I will say that our ranking and placement with our first one is way better than our new one (i believe probably because of our track record, history and rating...).  No explanation on my end and enjoyed hearing everyone else's thoughts.

your numbers are very close to one of our STRs.  We pay roughly that in mortgage on our place and our ADR is a bit higher, but the part that seems to be biggest difference is the "other" expenses, cleaning, utiliites, internet, supplies,  capex, etc. for me are more than $327/month.  could just be a difference in monthly utility bills and cleaning fees (and are you taking into account the Airbnb/VRBO fees)?  Also assume you self-manage...we do.

Happy to share ideas as I'm learning as well with our 2 STRs.

Joe

I don't know of the legality, but my question is whether or not Investor #2 and Investor #3 get any equity in the home.  If not, what is my incentive to give the $75k other then the $1000/month?

Joe

Welcome!  Nice to see another North Carolinian via Illinois !

(I grew up in Chicago > Time in Iowa > 6 years in NC )

Maybe we get together and share some ideas once this all blows over.  We've got 2 STRs in the mountains of NC, but would love to do some LTR and maybe a flip. Currently looking at some properties with my son in High Point.

Best of luck!

Joe 

I have 2 STRs in Mars Hill NC (in the Wolf Laurel community) that do very well. This is about 45 mins to the west of Spruce Pine.  We get many that want a combination of quiet remote location but driveable access to Asheville or surrounding activities.  I'd be happy to share any additional info on that area if interested.  We like it enough that we're looking for a 3rd and 4th property...maybe a LTR in the actual town of Mars Hill near the University.

Good Luck!

Joe

did you ever have any success?  I own 2 STRs in wolf Laurel now and manage my own. Just curious.  The ones near there were crazy expensive

I went the route of creating a lodgify website which allows you to build a complete booking platform with calendar, payments, communication, etc.  Cost was about $360/year and benefit was no fees paid to them and you keep it all.  I spent some money promoting on instagram & FB and still had it listed with VRBO.  In 1 full year, I got 0 deals from Lodgify.  cancelled after the one year.  VRBO does much better for me and it keeps me very booked.  Worth the fees in my opinion and my market.

things are looking up for us in Western NC. County put a hold on all STR through 5/8, and they haven't extended as of yet. We purchased a 2nd property in the same area as our first and got it rental ready JUST before Covid, so no bookings, but we also got lucky. The lady who cleans our first property has a husband who is in an at-risk category and she needed a place to stay away from population and asked if she could stay at our 2nd one. I cut her a deal to cover mortgage and bit of expense, so we were lucky. We've already started getting inquiries for June/July and think many will jump back into vacations very soon (and our place is a very remote getaway) so we're hopeful business as usual soon.

I believe I can make this one!