My clients in Sedona are averaging over 25% cash on cash returns with the current softened market.

In addition curious to see if anyone has noticed any softening the vacation home market?

Any input would be appreciated.Hi John.In the softened market, I'm consistently seeing my clients' super appealing luxury properties performing with higher occupancy rates and higher ADR's.

As of now it is still a sellers market but there were ALOT of loans that did not trade that lenders are looking to get off their books, so I anticipate loan pricing to soften slightly.

Prices will soften when inventory rises, however, due to the high interest rate there are less buyers.

I see this almost as an expansion of the same home, where potentially softens the rate of return slightly but increases my stake in the whole community- I am able to manage both of these very passively without needing to surrender a cut rn - I am very early days in my realestate investment journey and am interested in building a more diverse portfolio with a stable core (these SFHs stand to be a more stable, newer centerpiece that I could experiment with more lucrative high risk STR or rehab projects in the future)- I know the quality is very high, and I think with current demands, these properties fit nicely at the top end of the market - there seems to be a number of explored options yet, for finding quality tenants willing to pay better prices Why I don't like the deal:- It is almost definitely a worse deal that SFH1, doesn't feel good to be going in that direction on my second deal. - Doesnt feel like I am getting much of a discount at all on purchase- With these homes in a site-condo arrangement, future potential for STR/upside could be nonexistent, neighbors could start to make a big fuss and I would have to handle it I feel fairly isolated so far on this journey thus far, with only my partner to bounce ideas off of - so bringing this to you all.

That can soften blows and often can do cash for keys to remove them from your place, which is more cost effective than eviction.  

If rates go up, we might see some softening, but that's not happening currently.

The pros to multi-family would be that you have more units which will soften vacancy.

Turnarounds have been quicker recently as the market has softened.