STR Scout
Posts
💰STR Scout Deal Alert: Big Easy $261k Instant Equity in this Airbnb Deal

💰STR Scout Deal Alert: Big Easy $261k Instant Equity in this Airbnb Deal

1 Click STR Poll: Tell us your #1 interest right now?

(click one answer)

Advertise Airbnb Homes for Sale on STRscout.com to reach STR target audience.

STRSCOUT.COM

List your Airbnb deal on STRscout.com today! Reach the largest marketplace of active Airbnb investors with 88000+ engaged STR investors in our private Airbnb Homes for Sale group and 40000+ active STR Scout Newsletter subscribers looking for Airbnb Homes for Sale.

This weeks STRscout.com listings:

GA: Beautiful Off Market Turnkey STR in Elijay, GA - $829k

TX: Beachhouse in South Padre Island, TX - $2.16m

LA: Deal Alert: New Orleans 4bd Condo Conversion with $240k Equity

AL: 2|2 Beachfront Gulf Shores Rent Ready only $305k

THE BIG EASY DEAL

Create major instant equity with this minor $60k light rehab. Great BRRRRSTR (Buy, Rehab, Rent, Refinance, Repeat, STR) turnkey Airbnb deal in a top destinations.

Back on Market - Deal Alert

We shared this deal with special developer offer with our members a couple months ago. One buyer’s financing fell through last week resulting in 3 of these opportunities coming back on the market.

Only (3) Conversion Unit (pairs) Available:

501 & 502: $301,630 + $352,102 = $653,752

401 & 402: $321,630 + $352,102 = $673,732

509 & 510: $352,102 + $371,921 = $724,023

All units are prime units in the building, either on a corner or end.

The Details (example):

You buy (2) 1 bedroom condo units, units 501 and 502
= $653,752k acquistion cost
Light rehab budget for conversion to 4 bd units runs $60k
= $713,752k total cost
Developer will provide a furniture budget to make rent ready
Recent traditional lender appraisal (non-arms length):
= $975k - $1.048m (w/comps in the same building)
Investor value-add equity potential based on ARV:
= $240k to $334k
Timeline for Completion: 60 Days (light rehab conversion)
Local Contractor: Use the existing contractor who is already familiar with building and has already completed conversions in the building
All units already inspected with previous buyer, and developer has agreed to all the inspection item repairs (which are minor)
This is as close as you get to having instant FMV equity served to you on a platter

Tip: Write your contract with a appraisal contingency of $975k after repair value or greater. This would lock in your profit potential above your total acquistion costs of approximately $735k. Always do your diligence.

Why is This Deal Unique:

Regulations: Building is zoned and licensed for STR (new strict STR rules effective July 2023 do not apply to building)
Light Value-Add Rehab: Low cost conversion, high yield return
Proof of Concept: You are following a model for conversion that has already been completed in the building with other investors
Unit Demand: Prime units, corner or end units, highly desirable
Supply: There is a shortage of 4 bedroom Airbnbs downtown, high demand with bachelorette parties and large groups
Contingencies: Write your contract subject to meeting your after-repair-value appraisal to lock in your profits
Location: Prime location in downtown New Orleans, walkable to French Quarter and Superdome
Turnkey: Developer will furnish, and on-site management is in place with Hosteeva who has history with the building
Flexible Usage: HOA allows for personal usage, nightly use, weekly, or monthly rentals

Link to Listing Details

Schedule Info Meeting w/Developer

IN THE KNOW: TRENDING HEADLINES

📈 April AirDNA Market Review is out. Get all the details. U.S short term rental demand is heating up and supply is starting to stablize, pressure is rising to fill beds creating concerns for hosts to fill beds.

🥃 The overwhelming popularity of bourbon is not waning anytime soon. Airbnb released their travel trends earlier this month and the demand for whisky tours is very popular. Plenty of great things for Airbnb guests to see and do in and around the Louisville destination.

📃 Chattanooga City Council ok’s new rules for short-term vacation rentals. New rules limiting short-term vacation rentals to commercial areas that allow hotels, leading to potential lawsuits by Airbnb owners who claim their property rights are being violated.

📉 The Hamptons prices are declining as Airbnb owners contend with potential oversupply. Oversupply spurs price cuts as deep as 20% and rising inventory leads to price drops. Is it a race to the bottom on pricing to stay occupied?

💰 AirDNA announces new “Ranked Series” to help investors find the hottest cities for short term rentals. New monthly ranking for US markets equips Airbnb investors with revenue maximizing strategies.

💥 Summer 2023 occupancy is lagging behind for Airbnb bookings in the FL panhandle. Vacation rental performance has been slowing the past couple of years since its peak. These popular Airbnb markets are showing the greatest declines. Key Data report.
______________________________________________

Sponsorships & Partners

Do you have an Airbnb property, product, service, or Airbnb friendly real estate project you would like to share with our Airbnb investor community? Contact us to ask about advertising and sponsorships, or reply to this email with questions.

Note: This is for informational purpose only and not an offering or investment advice. Always seek professional legal advice and conduct your own due diligence.