All Forum Posts by: Kelly Olson

You can try Kin insurance, they are a direct insurance provider. I have found them to be the most reasonable for my Cape Coral property.

Can anyone recommend a good STR PM company in SW Florida for, not happy with my current PM. I have a 3/2 SFH with pool on a canal with gulf access in SE Cape Coral.

Quote from @Keith Dowdy:

Hi everyone,, 

I'm bullish on the area. My rental in Beech Mountain continues to do well. I'm starting to see more movement in terms of people turning their attention to investment properties again. Beech and Banner Elk are particularly strong. Other great areas for short term rentals: Sugar Mountain, Seven Devils, Valle Crucis, Vilas, Zionville, West Jefferson, Todd, and many others. While the rates are relatively high right now, there appears to be evidence that the peak may be at hand. One possible strategy is to get in before the prices shoot up as rates start coming back down. Get in at less that desirable rates, and refi once they come down. Or sell at a profit as demand inevitably goes up, along with prices.

If anyone is interested in investing in the High Country, let me know. I'm a licensed realtor who specializes in helping investors find a good investment/STR properties.

Or just let me know if you have any questions that you think I might be able to help with. 

Have a great day!

Keith Dowdy

eXp Realty

Lic#: NC 337517

Keith,
This is one of the areas I am interested in when purchasing my next STR property. I have 1 gulf access STR in Cape Coral, FL and looking to expand into the the other areas in the mountains of NC, TN or GA. For me its all about cash flow, let me know what I should be looking for as far as location in your area of expertise, I assume a great mountain view but are there specific neighborhoods in Beech or Banner Elk that will do better than others or are there other areas that are better values?

2nd home, I have another investment property with them, plus our primary home. I will be using it as I am setting it up, then eventually moving it to a true STR with only slight use. Then I will repeat the process.

Quote from @Mitch Davidson:

Hey @Kelly Olson. I agree with @Robin Simon. Conventional financing is always better if your DTI can work. And even if you get to a point where the home will cause your DTI to be a little too high, we can use a rent estimate form from the appraiser and count 75% of the figure to offset most or all of what the property will add to your DTI.

DSCR is a great backup option, but the downsides are (a) if the appraiser's estimate comes in lower than 100% or so of what the property's PITIA will be the deal will likely die, after you've spent quite a bit of money and time, (b) nearly all DSCR programs include a prepayment penalty for the first 3 years, unless you buy it down or out, (c) the rate is higher, and (d) your offers are a little less attractive because the financing type is "other" rather than something more preferred like cash or conventional.

Happy to discuss further if you want to setup a call.

Mitch,
DTI is not a problem, just wanted to make sure conventional was my best option. I asked for 1 MIL they approved at 8% with 5% down. My idea is to purchase as many STR properties as I can or as make sense lol, as income taxes are killing me. The market/ economy scares me right now though, that is why I have purchased as of yet. So many sellers trying to sell off of 2021-2022 revenue makes it very hard to find deals where the numbers work. I am open to other financing it the terms are better than what is offered by NFCU.

What type of lending product is best suited for STR investing for high income high credit score individuals? I am looking invest in the Smokies looking at both TN & NC sides and also in the Blue Ridge area of North GA.

Thanks!

Because 2000-2021 and into 2022 when everything was shut down vacationers turned to Airbnb properties for vacations/ getaways. Everyone started buying properties in areas like Blue Ridge, GA and the Smokies, especially the TN side as a way to make a quick buck, in reality it is probably the combination of the economy/inflation with vacationers having less disposable income and also saturation, more beds than heads. I believe things will stay slow for awhile especially with the economic conditions we are facing, but they will recover.  There are deals to be had, just need to look a little bit harder. Make sure to underwrite your deals with conservative occupancy rates. Of course, there are tax benefits with depreciation and the ability to use the property yourself when considering if now is the right time to purchase.

Properties can do very well in either area. I would recommend looking at properties that have sweeping mountain views or has river access. If you purchase a property in the woods, you will need a ton of amenities to set you apart from your competition. I can go to Airbnb or VRBO to see rates and occupancy, in addition there are programs like Airdna and STR insights to help you make decisions, but the best way is the enemy method when trying to determine potential revenue from a target property. Sellers are trying to sell properties based off of 2021 and 2022 numbers, that was a bubble and bookings have slowed, just keep that in mind.

My thought is maybe to hold off, as it is still pretty competitive. The more STR's that it the market the better for us buyers, which maybe we are starting to see. I would love to buy a bunch of properties in the next downturn. What type of mortgage rates & terms do you offer on STR properties? In my opinion I do believe the coming recession is going to cause the property values to decline, to what level that is the question.

Mitch,
Thanks for the heads up on the Crypto mining, I have not looked at properties in the Murphy area, just thinking about areas that are not so saturated and may provide a better ROI.