All Forum Posts by: Zach Plackemeier

Hey All - we have a few STRs in a suburb of the St. Louis, Mo area.  They are doing well.   The local city municipality is considering banning STRs in residential areas and making it only in option in commercial zoned ordinances.  

I have an opportunity to present some points to the local municipality on STR advantages to the city.

The crazy thing is the city (Saint Charles) does not have much of a hospitality infrastructure but does see a lot of visitors.  It’s not an area that people will come to “party” it’s mostly an area people come to visit for our historic Main Street, shopping, business and a local university that as grown a good amount (a large part of enrollment is out of state).  

I have a good list but curious if anyone else has been in a situation like this and looking for a few quick bullet points on arguments why STRs are a good thing for a community.  

Thank you all! 

@Avery Carl - I understand I guess - really CoC is what I'm asking and it sounds like 25%+ is the target. Would you agree on that?

@Collin Hays totally agree. I think that is the interesting thing about this type of investing. Traditionally you can analyze real estate much more universally but this not so much. I totally am all in and this is where a good chunk of my future RE money is going - I think CoC is really only way to analyze and to me that should be net after all expenses including debt service. Thanks!

sure.  I guess your answer is a key part of my question.  The person that is in the 200/nt market is probably “netting” a decent amount less than then 500/nt market unless expenses are much higher in that higher nightly rate market. 

@averycarl @Bruce Woodruff @Collin Hays  for reference.  I am debating on buying a 820K house here.  Let’s just say I put 20% down (160K).  
this place will gross 100K. Being local and having the boots on the ground here + it being in a low tax, insurance, HOA expense market it will bet about 40-45K after everything including debt service on the loan. 160x30% = 48K. So that is about as solid as people are seeing at these current purchase prices, correct?

@Jake Cohen. Thanks Jake. Congrats on the purchase

@Joshua Strickland

@Joshua Strickland

@Joshua Strickland

@Joshua Strickland thanks Josh.  Is that 75K+ after the mortgage (debt service) is paid or is that not in the calculation.  

@Luke Carl Yep, me too.

@Collin Hays Thanks!!

@John Underwood Thanks John.  Yeah I am not expecting a magic bullet or really trying to re-create the wheel.  Honestly, my thing is I am doing this for 100% investment purposes - i personally don't care to use these places.  My biggest question is how people calculate their returns... its just a little different and obviously the expenses very a ton market to market.   The market I am in is 40 mins from my house - we enjoy getting away up there if there is every a "vacancy" but my PP was 625K it will gross 80K this year.   The taxes are super low ($3500/year), insurance cheap (2K), and other than that its utilities... Now COVID really did accelerate this market but my only hesitation is I would hate to buy a property 10 hours away that ends up "netting" me what I could get in my backyard that in all honesty is "Stress-free" if I am missing 10%+ somewhere though that is worth it for me. 

Hey all. I have a few STR in a lake community near my home in Saint Louis. It performs well (in my opinion) however we are starting to want to look elsewhere. I am curious for those that self manage if you were buying a 1MIL place what would you hope to "net" after all expenses?

Thanks!

Hey all!

I have a few short term rentals locally in Missouri (lake communities) so I know my numbers. But am curious just for quick reference in any one of this STS markets if your buying a property for 1MIL and set managing - what would you hope to “net after expenses”?

I know markets very a ton with cleaning demand, taxes and insurance

Thanks

Zach

I know I’ll ultimately be getting some legal/tax advice on this but I am looking to raise capital for essentially a fund I guess you would say. It will be 100% tied to RE but I want to offer investors a return of around 10%. They have no ownership in the RE or any role they are strictly passive investors. Anyone’s thoughts on what type of agreement I would want or need?

Looking to connect with a realtor that has specific knowledge in the STR market in Blue Ridge, GA or Cherry Log, GA area?

Thanks!

Looking for a realtor with knowledge in this market for STR investment?

Hey all,

Curious where you think the best Florida coastal market is for STR.

Thinking of more or a house rather than condo - up to 1MIL budget.

Would be curious to hear anyone’s feedback but also looking for realtors in:

Lee County

Pinellas county

Marco island

Thanks!