All Forum Posts by: Vinod Badami

I agree with @Thomas Don. Taking 2020 and 2021 data will skew expectations significantly. You have to go back to 2018-19 to get some dependable data on what to expect in 2023. Also with the number of new STRs in the Poconos 2018-19 data is not available. Hence necessary to do a deep dive. I have seen listing prices drop by 20 to 30% in the last 3 months. However they are up 150% to 250% since 2018-19. Even if the current list price is dropped 30% it is still at least a 120% above what it was just 2.5 years ago!!!! So assuming prices normalize over the next couple of years one would have to have some pretty healthy occupancy just to make up for the potential loss in value. I think it is time to wait and watch. There will be bargains a plenty in the next 6 months.

Thank you all again. Great nuggets of information. It is definitely helping me make up my mind.

All,

Thank you very much for your replies. They are very helpful. 

@Luke Carl, @Brad Hughes, @Collin Hays

Since you all have properties in the smokies I have a couple of questions:

1. How many years have you folks owned your properties in the Smokies and typically how long would it take for it to start paying back?

2. One of the points that have been brought up on several posts is 'make you property unique'. However it is obviously not possible to know what thousands of other properties in the smokies have to make them unique. So if I were to go with the basics - for example - 2 bedroom, reasonably well furnished, no unique differentiators. Would that rent? What would be the occupancy rate to expect - just a range?

What I am thinking is rather than go crazy trying to start off with spending a lot of money on making it 'unique' what could I expect as a return for a basic 2 bedroom?

@Collin Hays

Thank you for your suggestions of Maggie Valley and Bryson City. Would you recommend them over the othe places where have properties?

Thanks in advance all of you for your replies.

@Christian Wilson I have been looking at the Gatlinburg market also for STR. However I get a strong feeling that it is saturated. The vacancy rate for STRs that are there is higher than some of the statistics that are published...when I read between the numbers. Hope to be proven wrong but will need it to be backed up by hard facts/data.

@Paul Wolfson thanks for your post. Have also been looking at the smoky mountains and buying a STR there. However my analysis has shown that there is a lot of saturation of STRs in Gatlinburg and Pigeon Forge leading to lower rates and occupancy. Of course you will always find the property that will make a $100K+ but the question I have is how does that compare to the average Airbnb property? I was told Bryson city is still not saturated with STRs. I will follow this thread because am still very interested in buying a STR there. Thanks.

@Dan T. have read this thread from your first post back in Feb of 2020. Just a great wealth of information. Thank you for sharing. Now that you are at 6 properties with REI in OKC and Memphis which location would you say is better? Also as one of the posts over the 2 years said - buying rehabbed property in OKC at around $200K does not make sense when new properties were available (and there are today) in the same price range, what was your reasoning for going for a rehabbed property? Thanks.

@Arron Paulino...have you spoken to any investors who have invested with Martel Turnkey?  How did you get in touch with them. I would be interested in speaking with them to see what they have to offer. Thanks.

Hi Ritu, you need to look at a 10 year plan with RE. There are various 'levels' as I call them with how you can invest in RE. Level 1 is doing everything yourself from identifying the property, doing the analysis for CF or appreciation, doing the rehab if required, leasing and PM. You may also consider farming out the PM to a PM company. Level 2 is where you want to be a passive investor and you go the turnkey provider route. As mentioned above there are companies that do everything from soup to nuts. However my concern with these is the fact that they do not provide any guaranties on CF (forget appreciation) and even PM costs. I feel that I would be much more comfortable with a turnkey provider who says I have built or rehabbed the property and stand behind it for 5 yrs. They only offer 1 yr. Level 3 is where you take passive to the next level and fund with crowd funding companies like Crowdstreet, Realty Moghul etc. There are some very good deals to be had here and your risk is also reduced. So all depends on what your strategy is. All the best. 

@Bradley Sriro - Hi Bradley, are you working JWB? In my introductory call with them 2 years ago or so they used to say that their recommended holding period is about 5 to 7 years. Now they have upped that to 10 to 20 yrs. That tells me that Jacksonville has peaked. Also their home are mostly in C and D class neighbor hoods with a demographic that are permanently renters. That means resales will be a problem and limited only to other investors. Do you have such a long horizon? and what is your exit strategy? 

Wow great posts and experiences. Thanks @Jenning Y..

@Tushar P. you referred to syndications. What are those?