All Forum Posts by: Steve Dye

Time for NNN residential lease. Then when property taxes go up more then 3% the city can sue itself.

Hi @Matt Cox! 

We are a couple hours west in Eau Claire WI and have a lake home Airbnb - in town, not a vacation area.  Since May we have had very steady demand.  To @Corina Eufinger 's point I wouldn't be excited about having Detroit fans come visit :) and parties in general can be dicey - though we are overly strict up front to discourage those folks from renting in the first place.  Though if you just come to all the games  that will be a moot point. :)

Our model is that people like to share space - a four+ bedroom house is much preferable to two to four hotel rooms.  As people travel like this more the demand will continue to expand for that product.  We have lots of first time users still - probably in the 70% range.

Wisconsin is decent from a legal standpoint (though going down hill a little with Evers) I would guess Green Bay might be a little different because of the Packers games but a quick call to the county health department and city zoning would answer that.  Also there is an Airbnb facebook group that is pretty knowledgeable.  Plus home prices aren't crazy.  

Good luck! 

Hmm not a good response rate.  Though hard to know if that's effort related or program related. 

@Kaynea Bingham your property looks great. Thanks for sharing! I will look at adding to my single STR this year mainly so I am knowledgeable when the cycle turns.

@Paul Sandhu - great source of leads for your properties. Thanks for sharing.  

@Kaynea Bingham Are your STR's in Orlando? (or some other city) Seems like your units may be in apartment/condo spaces. An airbnb four-plex of 10 unit would be interesting. Based on tor REA experience do SFH's with a pool provide a decent return in the Airbnb market? Thanks!!

@Paul Sandhu - that's a cool niche! Thanks for sharing.   How to you target them?  Do you have much concern of noise impact on weekends?  All around Kansas or one area?  

Sorry - lots of questions.  I have one local unit in Wisconsin as a test and personal use deal.  It's good for that but not sure it would be good for an investment only option.  Like the idea of doing a number of units in one city that is big enough to have more short term travelers.  

This is great to hear - thanks everyone!

I am looking at the 5-50 unit space and see all kinds of versions of this.  I was concerned that I would come off just as an unserious lowballer, or I was missing something obvious.  

I am going to make my first offer this week but didn't want to be rude.  When I adjust to more typical costs I expect the Cap rates at asking drop quite a bit. (which leads me to submit an offer 20 to 25% below asking.   

NOI missing HOA fees dropped the NOI to almost $0.

NOI at 75% of total revenue

Vacancy at 0%

Working a little in retail inventory liquidation I am not interested in any retail space.  The online competition is growing so fast it’s crazy.  Pier 1 is a fairly old brand too so on the weaker end of the retail list.

I just checked out the stock price - from $20 a share five years ago to $1.5 now. Lots of investors think this place is going down.  Good chance they won’t last through the lease,let alone renew.

If you have a unique play and you can be ok with the thing being empty for two years during the next recession then it might be interesting.  For me it would be a hard pass. Good luck. 

Over in Wisconsin east an hour and siimilar to @Daniel Kurkowski’s experience the cost to build gives a pretty poor cap rate project. We looked at duplex’s to eight units with a builder just copying other recent projects, so a bunch of costs saved.  The rent rates here are probably lower but lot cost and building probably lower too.   Maybe a builder for their own account could do ok but here it didn’t work.  Maybe if you did the general contracting or had some good deal on a lot.   Good luck.