All Forum Posts by: Josh Maier

I think you ultimately have to figure out if your goals align... let me explain

I operate a boutique style management company where we are very select with the owners that we choose. The reason we opened up to managing for others was because we were not finding what we were looking for. The larger companies whose goal is volume are going to have much different pricing and methods for how they run your unit. If the goal is to do market averages and pay minimal fees and require little communication the larger companies are going to be a better fit for you. Where as if you are looking to maximize revenue and have a more personalized relationship with who is running the hospitality business that brings you income you might look at the smaller shops. As we progress into the next year with an all time high in competition whoever is on your team is going to be extremely important for success. 

Like Michael was saying Pensacola is very street by street dependent to include what side of the street you are on in some cases. The inventory on multifamily has been rough for quite some time and the good ones fly off the shelf. Pensacola has the same ol story as everywhere else...low inventory drives up purchase price and long term rents haven't fully caught up yet. Tough to get great returns on most small multifamily but there are definitely good deals still out there . 

@Patrick K.

Hey there! I am over here in the Fl Panhandle from Pensacola to Panama City Beach and we have a very healthy STR market out here!

I cannot speak for other locations very well but we have a seasoned history of STR success out here and the market is continuing to explode with both in and out of state investors. We like everywhere else have had an inventory shortage that has made things extra competitive, but everyday more and more investors are still making their way out here and finding cash flowing deals.

Hey there @Atanas Petrov,

I think to speak to your hesitations of the saturation of STRs many people get intimidated by the amount of competition that these markets bring. Competition will definitely increase the risk in theory of diving into any market whether it is LA,FL,TN, ETC. Where there are more rentals there are more options for guests to choose where to stay. However competition also speaks to the health of that market as well. Where there is a solidified STR market there is much less likelihood of future legislation prohibition. Also in these areas with healthier STR markets there is much longer history of sustained travel to these locations limiting the chances of decrease travel over time. Finally in the more matured markets the vendors to include agents,lenders,cleaner, handymen, managers, etc are all seasoned and know the ins and outs of the industry. This allows you to have a much smoother transition and acquisition of team members initially to make you successful.

Wish you the best of luck my friend! 

@Tony Longoria Houses are on average staying on the market here in Pensacola for 2-4 days receiving multiple offers site unseen. If you are wanting to offload the property now is probably a good time to do it. It sounds like your team has taken care of the property so you should be able to move it fast. However we also have had a 100% increase in rent in the last year so you may want to re calculate what the current rental value is on that property like Matt Jones said. 

Hey William! Although the closer you get to Destin and anywhere right on the coast may be tough, there are some seller finance deals away from the beach a little in the surrounding areas. Pensacola for example has a few on the market that have seller finance options with a decent down payment. More suburban type areas and less beach front type properties! 

Whether you decide to run a STR or a LTR from a distance the same initial principles apply. Establishing a solid team is the most important factor. Especially from a distance having vendors/RE agent/PM/ ETC that you can trust and can build a strong working relationship with, will pay dividends for you down the road. Like Karl stated earlier the way you run a STR and LTR differ but there are really great softwares and people boots on ground you can team up with to make it succesful!

What we are seeing a lot of our STR owners doing in the off season is changing their marketing demographics. Especially here in the panhandle where we have a large amount of military installations and hospitals. They will transition to an executive rental targeting travel nursing, short stay military, or traveling professionals, etc.

Hey Gavin! Like the others have spoke on already, there is a small amount of inventory on the market right now for traditional small MF units. Some really quality ones just popped up over the last week but the price margins may prove difficult for large cashflow opportunities. However, we are able to find SF homes with ADU rental opportunities as well which can give you the same house hack type layout with a little creativity.

@JD Monroe would be a good resource for you to reach out of. Very knowledgable, seasoned investor throughout the panhandle.