All Forum Posts by: Kyle Wise

@Mitch Davidson Yeah I personally think there's a lot to do but that's the feedback I've received from guests. If you think about it, there's only a couple good restaurants in town and the best one, the Bistro at Everett, no longer allows non-guest reservations and you hit the nail on the head for the winter time, there isn't much to do except sit at the cabin. 

This is what concerns me because as active listings continue to increase, occupancy and ADRs are decreasing and you have to wonder what will continue to drive people to Bryson. Who knows, maybe some people will sell but I think we'll have a tough 12-24 months. 

@Mitch Davidson I would agree with your assessment however in order for Bryson to continue in growing they have to invest more in the town. They need more restaurants and attractions to compete with the other mountains towns in NC, TN, and GA. The key is repeat guests and I think that's where Bryson struggles. Some will return but I noticed a lot won't because there isn't enough to bring them back. 

I'm definitely seeing figures down from 2021 and 2022, which I expected, but it's tough when everyone is trying to fight for a $180 ADR. As you mentioned, people are trying to reign in their discretionary spending and I think the economy is definitely having an impact on their travel budget.

For me, I looked in a lot of different areas and most STR deals just don't pencil out anymore with the high rates, still high prices, and lower occupancy. The houses that are doing well are the true log cabins with amazing views, hot tubs, game room, immaculately furnished etc. but they come at a high premium and you better be sure you can gross minimum $100k to make it work.

@Adam Bartomeo I get what you're saying. We purchased our current primary house in 2018 in a highly desirable neighborhood of Tampa, FL with a good school district so rents are pretty solid in this area. It's worth noting we also put a lot of updates in the house i.e new bathrooms, new floor, new ac, new roof, quarts countertops etc which will help us get a good rental rate, thus I estimated we can cash flow $500. 

Our current house no longer fits our needs which is why I was thinking about renting it out and get a HELOC to help us fund the purchase of a bigger house. At the same time, I like the higher cash flow associated with STRs and because I have experience managing a successful rental in NC I was hoping to replicate the success down here. My only fear is that with the economic headwinds, STRs might be challenging moving forward.

@Michael Baum thanks for the feedback. Primary house is currently in Tampa, FL. 

Hi Everyone,

I would like to get everyone's insight as I'm evaluating two different options in the October time frame that involve upgrading our primary house to a larger house that better suits our needs. Let me know if this should be posted elsewhere on the forum. 

I'm trying to utilize the leverage of the primary house upgrade to acquire another investment property, either a new STR or LTR of current property. I've ran deal analysis on both scenarios but wanted to reach out to the collective group to see if I'm missing something and how your would approach it.

Primary House: $650k (Market Price), $330k in equity @ 3.6% interest rate. Goal would be to move into a new $800/$850k house. 

Option 1: Sell current house outright, capturing equity and purchase a new STR in Kissimmee, FL

-Take equity and put 20% down on new house = $160k (Wouldn't pay full closing costs because my wife is a realtor)

-Utilize remaining equity to purchase $600k STR in Kissimmee area with projected $75k-90k gross income based on comps.

-$600k STR @ 15% down = $90k + $30k (upgrades) = *120k

Note: I currently operate and manage a successful STR in the North Carolina area so have experience in the space.

Option 2: Rent out current house and use Heloc to help fund the remainder of the 20% down payment on new house

-Based on rental analysis and current PITI, I would cash flow $500 a month renting out current house

-Would need to HELOC $80k to help fund $20k down payment on new house + potential upgrades.

Thank you for taking the time to offer your guidance!

Kyle

Like some have mentioned, I use AirDNA to quickly evaluate certain markets not compare individual houses. There are so many different variables that AirDNA doesn't take into account however, if the data is coming in lower it might reveal an overall trend happening in that particular market. For example, even though I noticed the data was on the low side, when I did go into comparable calendars they we're in fact charging lower rates and getting lower occupancy in a lot of cases. 

People referencing what others made last year need to be careful because we all know the market has changed this year and a lot of individuals aren't seeing that same ADR and occupancy levels they saw in previous years. 

@Quinn Stewart I'm looking at the St Pete/ Indian Rocks/ Treasure Island area as well however, I'm waiting to buy because I think a lot of the properties are overpriced and the COCR just isn't there. Also be aware, insurance premiums have gone through the roof lately with the recent hurricane which is also impacting profit margins.

Great feedback. Thanks Michael! 

Thanks for the replies. Ideally, I would like to go the house route but in those particular areas a house is around double the cost of a condo. 

My initial thought was, I see a ton of condos posted on Airbnb so there might be a path towards profitability at a much lower price point than buying a house. 

@ Kristina Kuba, what type of restrictions are you referring to? 

In regards to the cities, I heard Treasure Island tried to pass restrictions but it was struck down. 

Hello,

I'm looking for a little insight from the group. I currently reside in Tampa, FL and am in the final stages of closing on my first vacation rental property in Western, NC but now want to focus my sights on a condo in the Treasure Island, Madeira Beach, Indian Shores etc. area. 

My primary goal is to generate solid COCR while using it partially as a vacation spot for my family.

I was curious to see what everyone's experience has been investing in these areas and if there are any recommendations you can provide? 

These are some of the questions I have to generate discussion:  

-What are the returns like for condo hotels compared to unmanaged?

-Views: Ocean vs Intercoastal. Obviously ocean is preferred but are people still doing well with intercoastal views?

-Can anyone recommend certain buildings that perform well over others? 

-What is your top criteria for investing in beach condos? 

-What are potential red flags e.g age of building, assessments, lack of parking, month long rental requirement vs. weekly etc. 

Thanks,

Kyle