All Forum Posts by: Scott Dalziel

 I agree 100% with @Leslie Anne Morris. I absolutely will buy an underperforming STR. So many people jumped on the bandwagon thinking its easy money and don't know what they are doing or don't run it as a business. Poor marketing across the board; poor design, poor quality furniture, poor management, poor pricing, poor promotion, etc.

If I see value in the location and the potential as a long term vacation rental, the prior owner's success has no relevance on the property's success.  

@Eric W.  I’ll send you a message.  Perhaps a phone call will be best.  

@Eric W.. A lot of good responses for you above.  I'm invested in STRs and regarding whether they are worth it or not, in my opinion yes.  The returns are great for a low amount of work on my part.  However, I am paying a PM to deal with the day to day.  It's a lot more work than a LTR and if you are the one managing it while doing another job or jobs, it will be really tough to be a good host.  The income is significantly better than a LTR, but significantly more work to manage.  

I've done large multifamily and retail in addition to residential and STRs can offer the best returns out there currently, but it is a hospitality business first backed by real estate.  The PM, whether you are it or if you hire one, is what will drive performance.  

I pick up all my deals from people who bought them not knowing what they were doing.  Poorly designed, poorly marketed, etc.  Change the marketing and put it back on the market to perform in the top 75% of the market. I'm stoked that the last one we launched now is up to 22 reviews that are all 5 stars on AirBnB.  Location and design play into that, but the PM drives the hospitality touches of cleanliness, responsiveness, etc.

I work with a few partners.  Send me a message if you want to discuss.

Not currently. Once you get into the longer stays (14-30 days based on local laws), they become tenants and not guests. Therefore both the tax laws and tenant protection laws apply. I would really hate to get into a situation where I needed to evict a tenant who booked/leased a 60 day stay and then refuses to leave the property when their lease runs out. With STRs you don't run into those issues, LTR you get the longer leases, security deposits, & first & last month rent to offset some of that risk. The STR market didn't create those laws, just expanded upon what was already there for the hospitality industry. The MTR market would need to become defined by lawmakers in my opinion before it gains momentum. I don't allow longer stays at my STRs for this reason.

Many MTRs, other than Corp Housing, seem to operate like an STR by collecting rent & fees upfront but without the protection of an additional security deposit, just elevated rental rates over a LTR. I can see the demand, particularly in snow-bird-centric locations, but I don't think landlords are compensated for that risk. For Snowbird centric markets, I believe the tenant screening process also adjusts for that risk, with most being retired homeowners. I'm not sure how to screen someone who wants a MTR for other reasons. The risk profile of that tenant would be much higher in my opinion. Are they doing something illegal? Don't have documented income to qualify for a lease, etc. Probably other ways to reduce that risk, but I don't think demand is high enough yet to get landlords excited to provide a significant supply of MTRs.

@Miranda Holland Thanks for the message.  I'll send you a message to discuss.  

@Riaz Gillani. I appreciate the insights.  Both STRs do have an uninterrupted history, but not a complete year yet, 11 months on 1 and 6 for the second.  

75% may be an option.  80% I'm positive will provide the funds I'm seeking while maintaining sufficient reserves.  75% isn't out of the question, but I don't want to decrease liquidity too much.

I have 2 STRs I purchased under conventional loans in my personal name. The current LTVs I estimate based on sales comps are at 59% & 66%. I'd like to refi into those loans into an LLC and use that capital to acquire an additional property. The lending market has been changing quite rapidly. Does anyone have a recommendation for lenders that are doing 80% LTV cash-out refi on STRs?

Thanks for the responses.  I appreciate the insights.  @Jonathan Taylor.  I'm seeking the 80% as I know that will free up the cash desired to undertake my next property + sufficient liquid reserves.  75% may get me there, but not positive.  I don't want to squeeze liquidity too much in this environment.  The long-term market rents will be close to covering at 80%, but doubtful.  

I have two STRs that I purchased personally with conventional mortgages I am seeking to cash out refi and buy a 3rd. I'm seeking to refi into an LLC. Im seeking recommendations for lenders that will do a DSCR cash out refi at 80% LTV?

@Tyler

@Tyler Gibson I am buying a STR in Kissimmee and would appreciate contact info on the broker you are referring for a conversation.

-Scott