All Forum Posts by: Quinn Olivarez

Quote from @Mary Ciccarelli:

@Quinn Olivarez @Shamar G. @James Wenzel @Jonathan W Martin and these costs include all the little items needed to fill the kitchen and bathrooms, etc? Big question is how did you finance this part? Did you take out an additional loan?

I likely won’t have the cash and I don’t have another property where I can borrow money from the equity. This would be my first property.

You shouldn’t finance these things except in unique circumstances. If cost is a barrier, consider taking on a partner, or waiting longer to execute. Yes, this cost included filling out just about everything from kitchen supplies to linens. 

Dollars per square foot is a decent way to approximate furniture cost. If you go below $10/sqft, you'll be looking at something that is probably "average" in terms of appearance, function and comfort. $15/sqft goes a long way in making a place look better, but yes that's also a lot more cost. I spent about $15/sqft setting up a Galveston TX STR recently and imo it has better accommodations and decor than 90% of comps in my market. Going higher than that is probably overkill unless you're designing a luxury space.

I’ve never stayed in a VRBO, but have used Airbnb in Galveston, Brooklyn, New Orleans, Barcelona, Paris, Santorini, Milos, Athens, Bangkok, Tokyo, Kyoto, Mexico City & Tulum.  

My experience has been all over the place. The worst by far were a Tokyo unit that was professionally managed but was very stinky, dilapidated and dysfunctional, and every shared room in Barcelona I've stayed in was the worst iteration of a guest bedroom experience imaginable, but it was cheap. My experience in countries and cities that depend heavily on tourism has been excellent (Mexico, Greece, Thailand, New Orleans, Galveston). my visits to places less dependent on tourism have been more mixed. I definitely think my STR exists in another stratosphere relative to my overall experience on the platform as a guest.

Pricelabs is really good. Easy to use and good price for what it does. I’m also on hospitable and it works fine, the price is fine. Good luck!

My wife and I have been going to tulum for the last 5 years or so and I gotta say, it seems like a terrible investment at this point for small timers looking to get a property or two. The prices are crazy for what you get, and the saturation is real. The amount of new condo builds since 2016 is staggering. There is very little opportunity to differentiate yourself in that space IMO, let alone as a new STR host. I worked for a Houston based real estate brokerage for a while that was pushing tulum condos, and tbh that lead to me eventually losing faith in the vision of the company and leaving for a different brokerage. The value just isn't there, from pretty much any angle you look at it.

On the independent property side of things, there is much more risk when it comes to maintaining the property, plus, average tulum visitors will probably see the features of the condo stay more inviting, thus creating a ceiling for growth. An independent spot is going to need security and privacy, water features, outdoor space to be competitive with the condos. Maintenance and cap ex could be brutal, and building a team to rep your interests on the ground could prove to be more challenging.

best of luck to you! 

This has been an awesome discussion, so happy to see all the different insights from around the country. Our Galveston TX str has had a slower than expected launch. 5 reservations since launch, and 3-4 other inquiries we couldn’t fulfill for one reason or another (usually too many guests and / or prom parties; don’t want to be too bad of a neighbor and let things get out of hand). I suspect high gas prices has a lot to do with the glacial pace of RSVPs. Airlines don’t hike prices up immediately when crude prices rise, and I think this disconnect is making flying appealing to many. I personally think it’s a great time to travel by air. As folks become used to the higher prices at the pump, demand should follow. We designed our property with differentiation and “grammability” in mind, purchased a well maintained home and added a lot of character. Our clients love the property, nothing but 5* reviews, but they’re coming in slowly. In order to adapt to what current demand is like, we have stepped down our nightly requirement to 1 night until mid may. We price more aggressively because of how unique our listing is from the competition. I’m hoping things pick up by Memorial Day. If they don’t, I will reconsider my pricing.

Quote from @Dustin Sanders:

Is anyone else experiencing slow bookings? I am in 3 different vacation heavy markets and my April & May calendars are at about 25% occupancy.

It would help if you told us which markets you’re in. 

Quote from @Austin B.:

I'm interested in getting into STR. I'm in the process of selling my home in Utah and although I don't know where I'll go next, I DO know that I don't want to be permanently tied down anywhere. I'm a single guy and I just need a little more flexibility in my life at present.

My parents are going through a divorce and one of the properties they own is a small but immaculate cabin in South Park, Colorado. My Mom takes unbelievably good care of all her property, so this cabin is absolutely top-of-the-line. As part of the divorce they need to sell the property. I am considering purchasing it myself. I did some cursory research on AirDNA and the numbers look pretty good -- 77% year-round occupancy. This house is an hour from Breckenridge and 2 hours from Denver, and two hours from Colorado Springs. Despite that, it's very quiet and feels like "the middle of nowhere."

How would I go about researching whether this is a good idea or not? I can not manage it myself, so I would have to hire somebody to do that for me.

This forum is a good resource for the learning. YouTube and books are too. Incidentally, some of the best YouTube creators in the STR space are also part of BiggerPockets. Same goes for the books on the subject; Avery carls book is very helpful. 

Quote from @Austin B.:

I'm interested in getting into STR. I'm in the process of selling my home in Utah and although I don't know where I'll go next, I DO know that I don't want to be permanently tied down anywhere. I'm a single guy and I just need a little more flexibility in my life at present.

My parents are going through a divorce and one of the properties they own is a small but immaculate cabin in South Park, Colorado. My Mom takes unbelievably good care of all her property, so this cabin is absolutely top-of-the-line. As part of the divorce they need to sell the property. I am considering purchasing it myself. I did some cursory research on AirDNA and the numbers look pretty good -- 77% year-round occupancy. This house is an hour from Breckenridge and 2 hours from Denver, and two hours from Colorado Springs. Despite that, it's very quiet and feels like "the middle of nowhere."

How would I go about researching whether this is a good idea or not? I can not manage it myself, so I would have to hire somebody to do that for me.

If you don’t know how to analyze a STR deal, I would learn that first. There are lots of great resources here and elsewhere. Next, when you do understand the basics, start doing some research. Airdna, enemy method. Good luck, sounds like an interesting opportunity!

Quote from @Account Closed:

Hey Everyone,

I was looking for input regarding STR and property management software like Lodgify. Right now we only have 1 STR so is this even needed? We do plan on expanding our properties. Does anyone have recommendations on how they handle their properties today whether property management w/software connection or just working with the property management team.

I just tried Guesty, found it wasn’t for me. I’m on hospitable now, and it’s pretty good, but I wouldn’t call it indispensable. It’s half the price of Guesty, so I’ll keep it for now. Pricelabs is super useful, I don’t see a world where I’m not using that tool. My cleaning company uses resortcleaning.com to interact with customers, but that’s free. It’s a decent product as well. I’m also on one unit like you