All Forum Posts by: Lake Lutes

Hey James! Stoked for you jumping into the STR game out here. The Emerald Coast can produce some huge numbers. Net cashflow is going to differ person to person depending on acquisition date and price, in addition to expenses. Some folks might not have a mortgage, and some might have a large mortgage, and even though they might produce the same gross income, their net cashflow will be different.

Over the past couple of years we've shot for gross income of 15-20%+ of the PP, but now shooting for 12-15%. Higher than that can definitely still be achieved if you know where/how to look! Happy to help if you need any more advice or recommendations out here, let me know!

Hey Sabin! Your investment style/technique is going to depend on a number of different factors - cash available, risk tolerance level, goals, etc. I would advise reading into and studying all the different types of real estate investing, and that should give you some great insight into which style best fits your goals and needs. Studying these methods can come through podcasts, books, online, etc. Best of luck!

Congrats on getting in the STR game! General rule of thumb for me and my clients is having the goal of breaking even or staying just barely in the red for Nov-Feb. March-October is where all of your money I going to be made out here! Let me know if you need any other help or resources.

Hey @Nathan Kawalerski, I'm a realtor/investor our here and would be happy to talk you through some specifics about our area. Make sure to factor the property insurance numbers into your estimates as premiums have risen quite a bit over the past year/few months!

Also - consider all strategies as STRs due well due to tourism and the beach, mid-term furnished rentals do great with all of the local military and hospitals, and long term rentals have great RTP ratios and a strong population basis.

Congrats on starting your journey! Everyone has to take that first step at some point, and this is a great idea/first step!

To answer your question, you do not need to look at only vacant properties. Removing the tenant can be part of any given deal you strike up with the current owner, and delivering the property vacant to you can be one of the terms. In addition, even with an owner occupied loan, the loan companies will give you some lee-way with tenants occupying your new property, and allow them "x" amount of time to vacate post closing (not sure on exact timeline).

If you chose not to make delivering the property vacant as one of your terms, you can always give the tenant in your new property a 30 day notice to vacate as soon as you close. That is not unethical, that is part of the business and part of real estate.

Hope this helps!

I invest in the panhandle of Florida, the Gulf coast specifically, and help other investors invest out here too - there's a lot that would fit your buying criteria: sub-$400K, steady occupancies, and good cashflow. The market is driven by tourism primarily March through October.

Hey Chad! I am investor and agent here in Destin/Fort Walton Beach - happy to help if you need help! As others have mentioned, price appreciation over the past few years have made finding deals harder, but there are certainly still deals, and very lucrative deals at that.

For the Florida panhandle, we've been using the 15-20% rule for a number of years now. That is, the gross rental income for the year should be approx. 15-20% of the purchase price. For example, if the purchase price is $400K, we're looking for $60K-80K of rental income. As properties have appreciated rapidly, we're now looking for 12-15%. For example, a $400K property that does $50K-60K is achievable.

Where are you looking for an STR and what sort of income numbers are you seeing, @Easton Hill?

Hey Melanie! Awesome goal for yourself and a great way to start your 2023! I invest and help investor up in the Florida panhandle, but even further north than Port Richey - Pensacola to Destin to Panama City Beach. We're in the middle of our slow months (Nov-Feb), so occupancy has definitely been low, but that is to be expected. However, we tropically start seeing a bit more bookings for early next year (2023) than we currently have, so it is safe to say the bookings have slowed a hair. With that being said, listings that are priced competitively, and have great marketing and reviews are still performing well and booking as expected. Our area is known for fantastic YoY gross STR income numbers compared to price points, and has appreciated very well over the years. Let me know if I can you help you out at all! Best of luck

I would agree with the others that 0 showings would indicate improper and high pricing. End of the year is always notorious for slow rental and sales markets, but 0 showings in a month is definitely a red flag. As a realtor, I would have raised my caution flag and had a conversation with the seller if we had 0 showings in the first week, let alone a whole month.

If you'd like, I'd love to evaluate it for you and give you my opinion. No matter the market or time of year, a home that is correctly priced and marketed well will definitely get showings, and can absolutely sell.

Best of luck to you and happy holidays.