All Forum Posts by: Sean Bramble

Hey BP - I've got a friend interested in mid term and am trying to help her underwrite her revenue projections. I'm an STR guy - rely heavily on Airdna and Pricelabs annual revenue estimates of nearby comps. Are there similar data providers who annualize revenue potential for mid term comparables? Trying to find a source that is more reliable than just looking at monthly prices on furnished finder, etc. Thanks!

Follow your heart. Don’t waste your life behind a screen. You only get to do this once… every moment is precious

Airbnb or hotel? Fast food or fine dining? Beer or cocktail? Beach or mountains? Casual or fancy?

It all depends on the consumer’s needs in the very specific context they find themselves in when making the decision

It’s not an “or”.. it’s a “when”

I wouldn't normally recommend this, but depending on the how many resources the county is devoting to stopping STRs, you may be able to squeak by for a few years under the radar. Many areas have laws that aren't enforced at all... but then others come down hard on those who break them

I'd recommend making your renovation decision based on ARV instead of the ability to STR it, and then make the decision to STR it or sell it weighing the potential upside vs risks. If you decide not to STR, waiting to renovate until right before sale is probably the best use of resources.

I am writing a biz plan for a "glampground" in an area that requires me to first rezone to be considered a "campground". Would like to build:

--- single family home on the site that I will use part of the time as a vacation home, but rent out while I'm not there (would like to use a DTI-based construction loan to fund this)

--- multiple studio cabin units for guests around the property that will be rented year-round (think tiny a-frames, etc. - will build in cash)

Question: can I use a traditional DTI-based residential construction loan for the SFH I'd like to build on this land? Or will the rezoning disqualify me? Should I consider subdividing?

I am considering buying land to put up several unique structures, but need to first understand the process of obtaining the appropriate permissions, and site/ infrastructure planning & underwriting for the entire development.

Anyone have experience with this? Would love to chat with you if so! Just trying to understand the process I need to go through

Thanks everyone!

Remember that every dollar you invest carries a unique ROI. Many agents will preach buying properties that come with existing furniture, or other ways of minimizing "costs" unrelated to the property down payment itself ... while this may boost the agent's commissions/ allow you to buy a higher priced property, in many cases this advice is wildly misguided.

Instead, the right way to think about the real estate purchase is that it is the foundation upon which you get to make even higher ROI investments into the hospitality business inside ... it's just the starting point.

You wouldn't start a restaurant and seek to maximize the amount you spend on rent, skimping on decor and ingredient quality. Nor should you buy an STR an underinvest in the interior aesthetics, outdoor experience and photos. It's true that in many cases you won't be able to use debt for these investment dollars, but they tend to carry a significantly higher ROI than dollars invested in the property itself which actually boost your return (not the other way around).

So beware. Treat the investment solely as a real estate purchase and you'll end up running a highly replicable commodity-like business that is at risk to new entrants and the next market shift. But if you invest your dollars wisely - in both the real estate, and hospitality business inside - you'll be able to compete for years to come. 

This is an entirely different business than LTRs, yet I see so many applying an LTR lense to what is really a hospitality business... and many of them are now complaining on social media of an "Airbnbust". Don't be one of them.

All good points, and certainly true for those who bought over the last several years locking in to a better cost basis… but don’t kid yourself about mid-scale developers entering the space with better product custom designed with the end consumer in that geography in mind. I know of one in the Western NC & Great Smokies area who is building hundreds of units over the next few years, reverse engineering the perfect curb appeal, interior design and amenities that drive sky high revenues per sq ft. These are build-to-rent developments focused on ongoing cashflow (instead of a quick exit). 

will a few developers like this put everyone out of business? Surely not. But I definitely wouldn’t want to own a Plain Jain 3/2 next to a new development of 20 brand new modern A-frame cabins :)

if your property truly is unique or high quality, there is safety in that. But let’s be honest - most folks who bought over the last few years bought normal homes thinking the returns we saw during covid would go on forever 

this guy is a big influence of mine ... really thinking ahead to what the next generation of STRs will be

https://www.stompcapital.com/s...