Build a strong team, prioritize cash flow, and take the time to understand the local market and regulations, especially for development projects.

We sold a wonderful two unit STR in Depoe Bay in 2024, which generally is a no-go zone but has neighborhoods with specific commercial zoning that allows for vacation rental usages as well as a brand new development of luxury homes that allows STR usages similar to Olivia Beach in nearby Lincoln City. 

When it comes to analyzing properties, I’ve developed a specific checklist to make sure the home fits both resident needs and operational goals:Square Footage: Ideally, at least 2,000 sq. ft. to ensure enough living space for residents and staff.No Stairs or Pools: It reduces liability and keeps the home accessible for everyone (this is just my preference).Corner Lots: I love corner lots because they often provide extra parking and outdoor space—both of which are critical for families and visitors.

It's in a newly developing area with houses being built and other lots selling nearby.

@Frankie Paterno In most places you will likely find that your $1.2MM will go much further with existing built as opposed to developing.

Depending on the number of jobs and number of new development going on in the area it may just be simple supply and demand.

I've asked my clients a similar question and have developed tools for them to minimize this, but I find there are a few different types of clients.Manager managed - these folks have no issues as they simply upload their year end statement from their property manager, their 1098 mortgage statement and any other one-off expenses they may have paid for outside of the management company. 

If the developer can do better than 35%, then the deal becomes even more profitable for them.

When you work at a large corporation (national or global) you learn a lot in your role, but also by osmosis, just by observing other people and seeing how projects are developed, business is done etc.

To meet this requirement, you must spend at least 750 hours per year actively participating in real estate activities, such as property management, development, or acquisitions, and these activities must constitute more than half of your total working hours for the year.