All Forum Posts by: Michael Klein

Hi Josh, 

It's easy to get into analysis paralysis mode. I'm guilty of it as well!

If you are clear in your goals and a STR investment makes sense, I would take action: pick a market, talk to people, see homes, get prepared with a lender, etc.

Taking concrete actions will make it seem more real and you'll learn a ton in the process.

Best,

Michael

Hi Abigail, 

I took a look at your listing. The main issue is that your listing is not updated and therefore not optimized. 

If you don't have the capital to invest in it, I would consider selling it. 

One thing to note about your township, is that they are having a meeting to present new STR regulations and one of the items is putting a cap in place for new STR permits. This hasn't passed yet, but the market is frozen at least till this meeting. I would wait to see what happens then.

If it's not passed, I think your home has potential for another investor. Good STR neighborhood, good lot, high ceilings, newer build. Just needs some updating.

All is not lost. 

Best,

Michael

I'm an agent in PA and have a client that is looking to invest in a STR. She's based in Tampa and currently have a portfolio of long term rentals. She's interested in Tampa area, Clearwater and Panama City. Does anyone have a recommendation for a STR real estate agent in these areas?

Hi Ben, 

You might try talking to www.str.haus/. I know the founder, Justin, and he's very experienced with STRs and use to manage a portfolio for a large investment firm. 

Hi @Jordan Campbell

AirDNA is directionally right, but it's not accurate enough to use directly for underwriting.

If it seems off, it probably is. If it seems right, it's probably directionally correct but can still be off +/- 10% or more. With STRs you're actually trying to find the outliers so it's just a starting point for research - are homes doing well, what is 90th/75th/50th percentile performance, etc. 

Before making an investment, you should have a point of view on the market and occupancy, which doesn't vary drastically e.g. in my market 5-6 BRs normally have a ~50% occupancy. 

Then find ADRs for similar homes as your target and create a range around low and high performance. 

At the end of the day, you are buying real estate. You can't just take data, put it in a model and make a decision. You have to look at it holistically along qualitative factors, risks and opportunities. 

Guests don't just put sleeps 11, 7 beds, hot tub, and pick the cheapest one. And the same is true about making STR investments.

Happy hunting!