All Forum Posts by: Mindy Nicol

Thanks @Andrew Steffens! Rick, let me know if you want to talk about the Jax metro.  I handle St Augustine/Ponte Vedra/Palm Coast but can certainly help with Jacksonville and based on your goals there may be other opportunities to explore.

To cover off insurance from previous comments, the market has changed and it is competitive with new carriers entering the market.  I have great insurance contacts and it is NOT necessarily expensive like others claim.  I can certainly get you quotes but based on my experience the market is becoming relatively affordable.  There is a lot of misinformation out there about Florida and insurance. Unless the property is in major disrepair, you are not going to have a problem in Florida. Please let me know if I can refer you to my contacts to discuss.  Message me and I will send you a video interview I recently did on this topic.

Thanks,

Mindy

Hi @David Cheng,

For this pricepoint I agree with the other posters, I'd have an agent represent you.  Cut through the people that can't afford it and get serious buyers only.  

Asking for POF (lender pre-approval, bank statement, line of credit etc) for a property like you have is perfectly normal. If the buyers are working with an agent, the buyer's agent should already have that. If they are coming direct, it is probably because they see you are representing yourself and hoping for a deal. If it is hard money for half the amount then you need to see something that shows the rest. Don't waste your time with anyone who is pushing back on this. Showing occupied properties can be hard to coordinate and should only be for serious buyers. My 2 cents!

Hi @Jon Martin, in the past anywhere from 2 days to 6 months out by my own choice.  St Augustine is a year round destination and close to drive markets of Jacksonville, Orlando also GA. Any time I open availability bookings have come quickly.  Currently the property is for sale so I am just opening the calendar for 4 weeks at a time.   Cashing out so I can begin a new investing adventure involving tiny homes :)

Hi @Kristin Solbach!

My humble advice. STR is a part time job. Do you have the time?

Down payment is just one thing.  I would ensure you have enough saved in reserves to handle down months, furnishing and decorating the entire house, closing costs, etc. Are you prepared for it not to cash flow in the first year?  If you have repairs and maintenance that could happen easily. Being a remote investor will cost you more as you will need services at the location and someone trusted to handle deliveries, replenishing supplies, turnover inspections, etc.  A property manager will charge you 20%, but there are other ways to do this.

For a first time investor, you may just want to do LTR first so you have a consistent amount coming in and if it cash flows you can add to the principal or reserves. STR has a lot more risk given the seasonality swings and I cannot understate the time involved in bookings and customer service.

Having said that we DO have STRs here in St Augustine, Florida in prime areas in the $400s.  Reach out if you are interested in this market!

Best of luck to you!

Mindy

I have a tiny home on my property and can't recommend it enough.  It is booked every weekend.  I believe the success is 1. cute factor, 2. price in an expensive town 3. demographic that is underserved.  From the hosting side it is a 20 min turnover and there are no parties with just 2 guests.  I just wish I could have 10 of these!  Much preferred over normal size homes.

Hi @Michael Belz !

I started my rentals with Lodgify a few years ago and it was the right decision. If you plan to do 2 or more calendars, automated messaging etc, and ultimately direct bookings, then it is a no brainer.  It is not expensive. 

For the purchase of future STRs I think AirDNA is a good tool but also use your own knowledge.  Their numbers are just one way of looking at it and may not be accurately what the rental could do.  I think it is worth the money if you are constantly looking at for sale properties like I do.  You don't need it to run your own rental however it is interesting data to review.  If you want this data, I prefer Pricelabs. It has been invaluable in my business and syncs to Lodgify.

For just getting started on your first rental I think it is fine to just start with one booking plaform but start to learn now about what tools will help you with occupancy and bookings. Highly recommend listening to podcasts and youtube shows to get up to speed with tech and what others are using.  Best of luck to you!

Quote from @Stefan St. Marie:

I see this a lot, and I think there's been so many bad projection tools on the market that the "what did this house earn" is a valid question.

For investment properties there is a true number and buyers want to know how that compares to the projections. 

What we need though is a standardized way to measure the metrics. Usually expenses are always understated and revenue is over stated. 

 Hi Stefan,

Thanks so much.  It's hard because we are also comparing experienced investors that run STRs already and people that have never done it before.  Is it realistic to think the numbers would be the same?  

Thank you @Kate Stoermer Totally agree.

Quote from @Henry Lazerow:

If it was priced right would sell in 1 week. It's likely priced high. At 10% gross to list price that really low for a STR. You can easily find long term rentals hitting those numbers.

It is priced on the real estate value not at business value. I would say 2/10 are investors, the rest looking for primary homes. Our DOM are 45 for this market. Nothing really selling in a week. 4 groups to my open home today and 1 showing in 6 days. Not bad seeing as there are 40 other listings in the neighborhood. 

7 days on market as of today but will be open to a price change after another week. I do need to sell and am ready to move on to other investments. Agree with everyone and won't be sharing financials until they tour and or provide pre approval/POF. Thank you!