All Forum Posts by: Tyler Solomon

the gulf coast is worth a look - @Napoleon DeCiutiis can help you out down there

@Leslie Anne Morris may have a connection!

There are DSCR lenders that will still lend on rural properties, with reduced leverage however. Is this the issue you are running into?

 This.

I think the people who saw str's as truly passive streams of income and are not upper end operators are the ones who will get taken out over this economic down turn. Increasing regulations from cities will also begin to wipe out un licensed operators. I very much like @Account Closed's banana sales comparison 

There are gems out there regularly that are waiting to be found. Don't be surprised if your due diligences actually find/produce an asset that is within your buy box and is cash flow positive - especially in the STR space. I see investors fall into this trap regularly and succumb to the paralysis by analysis conundrum. After months of due diligences, (sometimes folks get lucky and it's weeks or even shorter) , they find a property that actually will perform well and meets most or all of their criteria - only to talk them selves out of it for one reason or another. Have a mentor review your underwriting to be sure you accounted for all expenses. But don't be surprised when the numbers pencil for a particular property. Seeing double digit returns on ConC and ROI is not unusual, see it on strong STR's regularly.

Keep in mind - operating the STR to it's peak performance will require diligent thought and effort to best generate reviews, drive up the nightly rate and occupancy, and maintain an edge over your competition! 

As someone who has stayed in both a cabin and a condo in the Smoky Mountain region, I enjoyed being a little more secluded and surrounded by nature, and really getting that "cabin feel" while being able to take in the beautiful scenery. While the condo was not bad, its proximity to town did elicit that "cabin feel", nor did its views. That is just my annectodal account however.

As for financing, condos are typically going to be more difficult to find conventional financing for, however most DSCR lenders can work with them - whether they are warrantable or non warrantable. @Brian Barch makes a good point as well with regard to the difficulty to differentiate, as well as strong (and often pricey) HOA's.

Facebook Groups is where I have had borrowers source a few of their own, but as @Nathan Gesner mentioned, these are typically going for top price and often end up with multiple offers on them because of their marketability. A good property will have more than one set of eyes on it typically in those groups.  Not saying you cant find a deal on there, but to really find deals you need to do your own search.

Think about places that YOU would want to go visit - or places where you know others visit frequently. Then check in on that city's zoning and regulation guides. AirDNA is a useful tool to help narrow down markets as well!

Depending on the property and available space you have, a small shuffle board table, or foosball table as @Leslie Anne Morris mentioned are great value adds IMO. Even more so, do the little things right, like @John Underwood mentioned. you would be surprised how many people lapse on keeping the essentials stocked. I stayed in an AirBNB recently in which there was no hand soap available in the bathrooms or kitchen, just some good ole dawn. Very minor thing to miss, but quite annoying to have to go purchase as a guest. Doing the little things right allow you to do the big things right!