Quote from @Mike McGee:
A couple of years ago I sold an LTR and 1031-exchanged it for an STR in the NC mountains. I have grown to really like the STR business! Now I want to sell a handful of LTRs and buy another STR, this time preferably in Florida. I like the Punta Gorda / Charlotte county area, but I'm open to other markets.
As far as STR’s in FL, seems like everything is somewhat seasonal. The panhandle is seasonal - busy in summer for beaches, slow in winter because it’s too cold. SW FL is seasonal the other way - busy in winter for northerners escaping cold, but slow in summer because it’s too hot.
Seems like there should be some place in FL that’s a happy medium. (I'm not really interested in the Orlando/Disney market.) Any other suggestions for less-seasonal Florida STR markets?
Thanks!
Hey Mike, I offer a white-glove solution for out-of-state investors for STRs in the Pinellas County area (Clearwater to St Pete). I just ran a report on one of the bread n' butter properties I do for clients and this property has been running for 10 months (since last october). Final figures: 76.8% occupancy and a gross income (not booking value) of over $120k across all channels. Property was bought with today's rates and numbers and performing well. A big reason for it is that we make our properties top-performers with professional experience in the acquisition of a property, to the professional design, and excellent management at discounted rate for clients (15%)! We have it all available and customizable for you if you're more of a DIYer or wanting a full-service experience.
Now, a lot of people call and ask me what it takes to get a project like this done. The recommended cash budget is as low as $180k (for the DIYer) and $225k-$250k+ if you are 100% hands off. This is because I recommend at least 20% down and the homes tend to cost $500k-$650k for the lower-end budget. Prices less than that tend to require a lot more rehab budget or, are unlikely to have the proper mix of location, size, amenities, etc to have a strong ROI.
If you follow @robbuilt from BP you'll see he just posted on his IG story a link to my most recent STR I launched for a client! That'll give you an idea of the finished product we do to get great returns. If you're have a bigger budget, there are definitely great opportunities in what I call "Tier 1" properties. This budget is higher, but the ROI is as well. Those prices range from $800k-$1.5M depending on the specifics but the income increase is as much and the cost to own is slightly lower because insurance, maintenance, and utility costs do not go up linearly on these making a bigger margin for you. If you fit this category or the "tier 2" category ($500k-$650k), feel free to DM me and we can see if it'd be a good fit to work together and discuss the process.
As a sneak peak, as I don't post or share numbers with non-signed clients, we tend to see 10-25% CoC returns depending on YOU: what you do or do not contribute and the finished product you choose to make ultimately. Someone self-managing and DIYing the design/furnishing has the potential to see the higher end of the return assuming they are a good operator; while someone who outsources the design/furnishing and management will of course see the lower end of the return as they aren't putting nearly the same amount of time into it. This is all with today's prices and rates too so no stat padding (and a good chunk of the cash used is just equity/downpayment on the home).
