All Forum Posts by: Richard Scott Dinnan

Hi Chris, 

The hardest part was securing a cleaning company that understood vacation rental turnover without the hidden “property management” goal and associated expenses.

I see you provide guidance on these type of investment properties specific to this location. I might be reaching out next year as I am looking to do another STR in St Augustine.

 

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $241,000
Cash invested: $60,000

Restored 1940s bungalow just off of King St in St Augustine.

What made you interested in investing in this type of deal?

Pursuing a larger portfolio in the St Augustine and Pigeon Forge areas.

How did you find this deal and how did you negotiate it?

I have a good realtor in both areas.

How did you add value to the deal?

Restored the house and gave it "rental appraisal value" as it was not used as a rental ever before.

What was the outcome?

A high CAP vacation rental with a large amount of up front equity earned.

Lessons learned? Challenges?

St Augustine is tricky to manage remotely. Securing the right logistics prior to buying is something important.

@Mike Shulman

Hi mike,

If you just google zoning map with the zip it will come up. St Augustine city website does a good job of describing which zones are weekly and nightly as well. Essentially RS-1 RS-2 & HP-1, are the restricted zones.

@Nancy Bachety

@Chris Mury

Thank you both for the input and advice, we are scheduled to view our second round of homes Saturday and are very excited. This will be our second STR, the first being a cabin in TN.

I had a similar opinion in regard to playing the zoning to its strengths and weaknesses. This is why we are looking for downtown Lincolnville or just across the bridge near the beach. In the areas we are looking is it RS1/2 HP1 so it will be weekly. At that point we will focus on amenities and so what we can do.

To answer your question the goal is maximizing profit. Is it relative since you can charge more downtown/beach in restricted zones and would typically charge less outside, “the bubble” for nightly in your option?

I am getting ready to purchase a home in St Augustine. In light of the new RS-1,2 HP-1 zoning laws for STRs is there a smart play here?

@Paul Defngin

Thanks Paul, that’s what the research is telling me as well. I’ll keep working on that 20 %. Thanks for the info.

@Joseph Bafia

Thank you Joseph, as I start this BP I am looking towards the same type of thing. I will start with STTs to obtain CF and then diversify with some LTRs. Thank you for the advice!

R,

Scott Dinnan.

I am in a position to buy a larger property that expects a large cash flow 3x loan payment conservatively. I currently only have 10-15% to put down on the loan. Just looking for advice. Should I wait?

Thanks Cole, I appreciate your advice! I am working on setting that cash flow goal and my long term goals as well. 

Hi, I just started (seriously) in the rental investing business. I have been successful with a cabin in TN on Airbnb starting in March21. It is a platform I am comfortable with and have seen first hand its potential revenue stream but also the time involved. I also have a leased 4/2 in TX that I am looking to sell along with my primary residence. This will put me in a position to purchase a larger property. I am struggling with whether to invest in a larger property with more capacity "doors" on a lease based system OR go for a smaller multi-family in a destination area for an Airbnb short term system. I project far greater return for the Airbnb however if my goal is long term wealth, is short term rentals smart?

Could anyone lend me tips, or their experience?