All Forum Posts by: Robin Simon

 They are doing a much smaller one in Miami Beach in September (limited to 100) that I think is filling up fast so if you are interested, I would hop on that asap

DSCR loans are probably your best bet, similar rates to conventional (about 50-75bp higher), but LLC friendly (even preferred) and much less documentation/easier qualification

Wait and negotiate.  As you noted, rates are deteriorating and tomorrow's FED announcement will be big.  If its negative and rates continue to worsen, you should be in a good position to "walk" with the seller not having any other buyers meeting or beating your offer for the foreseeable future.  In this scenario, they will likely have to drop price OR you will see lots of other options pop into the market

I think the suggestions here are good but don't overlook posting on some big STR facebook groups, there are a couple that are dedicated to people looking to buy STRs, especially turnkey cash flowing ones.

Hi Sam

Speaking on DSCR loans, you can buy down points for interest, but your interest floor is probably going to be around 6% and maybe a bit higher, which might be a tough sell if you are currently in the 4s. That being said, you should always run the numbers and they might surprise you, considering the big increases in rents. You should model two scenarios: A) Status quo, how much you will make if you just keep the 2 properties with your current loans, add up the A+B properties cash flows and B) Cash-out refinance and buy a new one, add up the monthly cash flows for A+B+C

 Yes - Galveston (TX Gulf Coast), Idaho near Yellowstone (Victor/Island Park), Virginia (Shenandoah area) and Blue Ridge Mts GA.

searching for the next East TN Smokeys, Joshua Tree, etc

There was a great conference this past week STR Wealth Conference in Nashville, over a 1000 attendees and some great speakers in the STR industry. A lot of insightful conversations and speakers and despite the rough market (rising rates, dampening economy, etc.) tons of energy and excitement.

Sharing some takeaways and curious to hear if anyone else on BP attended and had other takeaways or agree/disagree etc.

-Data Data Data - one thing I consistently hear everywhere relating to Short Term Rentals is the number one separator of success and failure is embracing the data available for the industry, particularly a pricing tool.  This theme continued here where you constantly heard how when people first started out, their biggest mistake was manually pricing deals (instead of using software) and that led to them consistently leaving money on the table.  Consistent theme is their properties and investing experience took off once they made the switch.  Also as "hot" markets become overheated, how important it was to examine the data to uncover the next "hidden gem" markets

-Platform Risk - A lot of talk about setting up booking direct and how to market that to reduce your exposure to AirBNB and to a lesser extent VRBO. A lot of STR owners are taking a lot of risk, especially with the bigger changes AirBNB can announce, like the recent "categories" that changed the game for some people. As owner, no real control over this, so having at least direct marketing/booking knowledge is key

-Financing - the 2nd Home policy changes announced by Fannie/Freddie April 1 really hurt the 10% down 2nd home loan as an option for AirBNBs. There was a good presentation on the pros and cons for different financing types, but one emphasis is that DSCR loans that have the greatest flexibility in qualifying and the least hurdles to get deals done in the near term.

-Also interesting presentations on tax strategies, interior design and furniture strategies (and how big an impact those seemingly minor choices can have on pictures and success) as well

Any other attendees here, other takeaways?

It's never too early in the process to start talking with will be a lenders and learning what the process will be and what different options are available.  Also, will be a great help in underwriting your deals as financing numbers such as rate, leverage, points have a huge effect!