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  • 🔥 STR Homes for Sale | Scouting Report 03/30/24

🔥 STR Homes for Sale | Scouting Report 03/30/24

STR's in MI, TN, GA, FL, GA, MA, AZ!

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STR Scout
March 30, 2024

TOGETHER WITH:

🔦 Register for Host Financial’s live Q&A webinar on April 4th at 12pm CST. Bring all of your STR lending questions for Co-founders Dan Ramirez and Adam Windham.

🐣 Happy Easter! In this week's scouting report:

  • STR Classifieds: STR deals in MI, TN, GA, FL, GA, MA, AZ!

  • Blog Spotlight: Airdna’s U.S STR February Market Review!

  • News Nuggets: Hot news nuggets trending this week!

  • Upcoming STR Events: Best STR events to attend in 2024!

STR Scout Team

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Whether you're exploring your first investment or aiming to expand your STR portfolio, consolidate, or cash-out, this exclusive STR lending webinar is tailored just for you!

🗓 Date: April 4, 2024
🗓 Time: 10:00 AM PST / 11:00 AM MST / 12:00 PM CST / 1:00 PM EST

  • Expert Insight: Open Q&A session with Host Financial’s Co-Founders, leveraging their deep expertise in STR financing.

  • Interactive Q&A: A unique opportunity to get all your pressing STR lending questions answered, from loan products to market trends they are seeing in 2024.

  • Actionable Strategies: Equip yourself with loan product knowledge you need to navigate the evolving STR real estate landscape successfully.

📣 Seats are limited, reserve your spot today!

FEATURED PROPERTIES

Luxurious 3/3 Trout Stream Retreat in North Carolina

🏡 $610K | Glenville, NC: Luxurious 3br 3ba trout stream retreat, 1549sqft in a gated community offering privacy and natural beauty. Revenue projections range from $47k to $104k, with distinctions for Average and Super Hosts. This picturesque property features a serene trout stream, a private oasis with a pizza oven, fire pit, and hot tub, perfect for relaxation and entertainment. Ideal location near Cashiers, Highlands, Cullowhee, and Sylva, with Western Carolina University and Lake Glenville a short drive away. Experience luxury mountain living at its best. View Property Details
STR Agent: Tyler Coon
Text or Call: +1-828-620-2541

Charming STR on Golf Course Near Glacier National Park

🏡 $850K | Columbia Falls, MT: Charming 4br 3ba home on the golf course, 1873sqft with majestic mountain views near Glacier National Park. A rare find in a STR friendly community, offering fabulous views and year-round recreation including Glacier National Park, Whitefish Mountain Resort, and golf. Prime location for STR with easy access to shops, dining, and entertainment. Experience the perfect blend of comfort, luxury, and adventure. View Property Details
STR Agent: John Hayes
Text or Call: +1-850-375-4113

STR CLASSIFIEDS 
😎  STR For Sale by Owner (Off Market)

$480K | Saint Louis, MO: Fully furnished 4-bed, 3.5-bath home with 2-car brick garage. Owner financing available with 25% down at 9% interest. View Post.

$210K | West Coast, FL: Turnkey 2-bedroom property newly listed on Airbnb. Recently remodeled, metal roof, and new windows. Close to Gulf beaches, kayaking, snorkeling, and more. View Post.

$1.8M | Lansing, MI: Portfolio of STR homes generating $15,400/month in NET INCOME. Annualized income around $185k. Ideal for mid-term to long-term rentals due to GM expansion. Access to maintenance team included. View Post.

$525K | Nutrioso, AZ: Short term rental with 4.98 rating on 2.5 acres (1 acre fenced), creeks on property, private well. Year 1: $70k revenue, Year 2: $50k revenue. View Post.

$325K | Kissimmee, FL: Fully approved 3/2 condo in Oakwater Resort, 10 mins to Disney World. $500/month HOA fee. Includes all furniture/supplies. View Post.

$135K per cottage | $250K together - Monroe, MI: Two turnkey side-by-side cottages near Lake Erie. Fully furnished, not listed on MLS. Combined revenue $58K in 9 months. View Post.

😎  STR Selling Agent Listings

$699K | Branson, MO: Newly constructed 4-bed, 4-bath lodge near Table Rock Lake and Silver Dollar City. Ideal vacation destination. View Post.

$1.249M | Wears Valley, TN: Modern 5-bedroom cabin on 3.7 acres with stunning mountain views, large pond, and brand new septic tank. Fully remodeled with hardwood floors, custom kitchen cabinets, and more! View Post.

$850K | Mineral Bluff, GA: Turnkey luxury cabin with year-round long-range mountain views, 2 wood-burning fireplaces, open layout, tiered decks, game room, and more. No HOA. On track to outperform 2023 revenue. View Post.

$275K | Nancy, KY: Lake Cumberland Retreat currently operating as a successful Airbnb/VRBO. 1 mile from Lake Cumberland. Complete RV setup. Hot tub, fire pit, and more. View Post.

$369K | Jacksonville, FL: Historic Airbnb property with $44k revenue in 2023. New 2024 roof. Walking distance to Avondale shops and restaurants. View Post.

$849K | Cape Cod, MA: Fully furnished STR with untapped revenue potential. Grossed over $60k in 3 summer months and $30k in the off season. Walking distance to non-motorized boat drop. Optional management available. View Post.

BLOG SPOTLIGHT
Demand for Short-Term Rentals Grows, Signaling a Positive Shift

February witnessed a notable increase in demand for short-term rental (STR) accommodations in the U.S., rising by 15.6% year-over-year (YOY), showcasing a recovery from the previous month's slow pace due to adverse weather conditions. Despite this surge, average daily rates (ADRs) saw minimal changes, indicating that the occupancy boost didn't translate into significant pricing power for hosts. Here are the key takeaways from the recent trends in the STR market:

  • Growth in Demand and Occupancy: The demand for STR accommodations has seen a healthy increase, with occupancy rates surpassing those of the previous year. This recovery suggests resilience in the market, bouncing back from January's lows.

  • Stable Average Daily Rates (ADRs): Despite the increase in demand and occupancy, ADRs have remained stable, with a slight decline of about 0.1% YOY. This stability in pricing, amid growing demand, points to a competitive market environment.

  • Economic Indicators: The economic landscape, marked by the addition of 275,000 jobs in February and a slight uptick in unemployment, suggests potential interest rate cuts. However, inflation rates have also seen a marginal increase, leading to mixed signals about the future economic direction.

  • Listings Dynamics: There has been a decrease in available listings, with a notable drop in February. This trend reflects seasonal adjustments and possibly the impact of January's unfavorable weather conditions on the market's inventory.

  • Booking Trends: Bookings in February indicate a promising outlook for the spring and summer travel seasons, with an increase in nights booked and solid demand pacing already noticeable for the upcoming months.

  • Regional Highlights: Specific regions, including cities in Texas, are gearing up for high demand during the North American Eclipse on April 8, with occupancy rates and ADRs increasing in anticipation of the event.

Stay informed and engaged with the latest STR market trends and insights by visiting the Airdna.

NEWS NUGGETS

💰 Airbnb Tax Contributions: Airbnb has remitted over $10B in tourism taxes globally, with $2.4B generated in 2023 in the US and Canada, supporting local services and highlighting the importance of streamlined tax collection — Airbnb

Real Estate

🌪️ Florida's Condo Crisis: High insurance rates, HOA fees, and interest rates lead to a freefall in Florida's condominium market, with a 30% increase in listings and significant price drops in major markets — Yahoo

🏠 Housing Market Warm-Up: Recent indicators reveal the U.S. housing market is gaining momentum with a significant rise in existing home sales, new construction, and building permits, suggesting robust growth for 2024 — EFT Trends

📉 Florida Housing Dichotomy: While Florida’s housing inventory surges by 34%, South Florida’s commercial real estate remains robust amidst national concerns. Foreclosure rates rise notably in Orlando and Miami, as home prices hit record highs, challenging buyers further — Florida Trend

📈 Fannie Mae Predicts Mortgage Rates: Economic forecasts suggest mortgage rates will remain "higher for longer" due to strong job markets and rising inflation, with Fannie Mae adjusting its 2024 outlook to reflect an anticipated year-end 30-year fixed rate of 6.4%. Despite challenges, the housing market is expected to see a gradual increase in activity and transactions — Mortgage Orb

📉 Housing Market Struggles: New home sales dip in February amid high mortgage rates, despite being nearly 6% higher year-over-year due to low pre-owned inventory. Median new home price falls to $400,500, the lowest since June 2021 — Washington Examiner

🏠 Rising Insurance Costs: Homeowners insurance premiums are intensifying the housing affordability crisis, with Freddie Mac noting a significant increase in costs, particularly affecting low-income borrowers — HousingWire

🏡 Pandemic Optimism and Mortgage Payments: Research shows that during the COVID-19 pandemic, homeowners with higher expectations for future housing price increases were more likely to halt mortgage payments when their optimism faded, revealing the significant impact of borrower expectations on the housing market — Fortune

🏠 Dubai's Airbnb Surge: Listings have doubled in three years, Dubai one of the most profitable locations globally for Airbnb landlords in 2022. Occupancy stands at 56%, w/average profit margin $1,000 per unit monthly. The market is diversifying with larger units and longer rentals becoming popular, and social media plays a crucial role in marketing. Despite challenges like high rents and the necessity of careful cash flow management, the sector's growth is anticipated to continue — The National

Economy

📉 Labor Market Warning Signs: Eye-opening data reveals rising unemployment in key U.S. states, casting shadows on the national employment picture; this uneven job market landscape spotlights potential challenges ahead, with California leading at a 5.3% rate amid tech sector cutbacks — Axios

📉 Housing Bubblenomics: Chart analysis, March 2024 data show substantial price declines in cities like San Francisco, Seattle, and Denver from 2022 peaks, indicating shifts in some of America's most inflated housing markets — Wolf Street

🚨 CEOs Highlight Debt Crisis: Leading CEOs identify the surging U.S. national debt as the foremost geopolitical risk in 2024, amidst global economic instability. Urgent calls for action to mitigate this "homegrown" challenge emphasize the need for strategic measures to ensure fiscal sustainability and protect U.S. leadership on the world stage — Banking and Finance 2024

🏛️ Echoes of Rome: The U.S. grapples with political polarization and the use of the justice system as a political tool, mirroring ancient Rome's conflicts that led to autocracy, despite the key difference of a politically neutral military today. — Time

💳 Credit Crunch Shift: February sees a slight decrease in credit card delinquencies to 3.20% from January's 3.24%, yet net charge-offs ascend to 4.44%, signaling a mixed financial health landscape among consumers and hinting at cautious credit management ahead — Seeking Alpha

💳 Credit Card Struggle by State: Despite avoiding a recession, U.S. states face unequal credit card debt burdens in 2024, with Louisiana, Mississippi, Oklahoma, and West Virginia most stressed by low incomes and modest debts, contrasting with higher-income, less-burdened states like Massachusetts and Minnesota — Yahoo Finance

🔴 Orlando Foreclosure Surge: Metro Orlando faces a troubling uptick in home foreclosures, ranking as the seventh-worst in the U.S., with 808 homes entering the process in February 2024, spotlighting ongoing housing challenges post-moratorium — Orlando Business Journal

AI Trends

🌍 Vacation Home Matchmaking: Homes & Villas by Marriott Bonvoy introduces a revolutionary AI search tool, enabling travelers to find their perfect vacation rental through natural language descriptions, from city escapes to beachfront bungalows, enhancing personalized travel experiences — Marriott

🚀 AI Economic Boom: As AI technology advances, researchers predict potential economic growth rates of 20-30% per year, dwarfing historical growth rates and potentially reshaping society with wealth levels previously unimaginable, here is a deep dive — Vox

🤖 Real Estate AI Transformation: AccessibleAI, led by visionary Edward Lewis, unveils a groundbreaking initiative and book to empower real estate professionals with AI, aiming to revolutionize efficiency and deepen client relationships through innovative, intuitive tools — EIN Presswire

🔮 Predicting Real Estate's Future with AI: Hopewell Residential and OpenHouse.ai partnership highlights the use of AI for forecasting real estate market trends, offering a futuristic approach to homebuying and construction. This strategic alliance focuses on utilizing predictive analytics to adapt to market changes proactively, ensuring homes meet future buyer needs while remaining accessible and cost-effective — CNW

🏗️ AI's Construction Revolution: Compass invests over $1 billion in tech to streamline the entire real estate process with AI, including tools for predicting sales and automating listings, amidst a backdrop of market challenges and potential for sweeping industry transformation — Fortune

STR Regulations

⛷ Summit County STR Struggle: Short-term rental owners in Summit County, like Laura James, face a projected 42% revenue loss and consider selling due to new housing regulations, impacting tourism and local businesses — Summit Daily News

🏡 Short-Term Rental Regulations in Nashville: Legislation limiting non-owner-occupied short-term rentals in residential areas has not halted their growth citywide, despite incidents like Daniel Hernandez's lawsuit for zoning non-disclosure. Nashville sees mixed effects, with investor-owned Airbnbs still on the rise, affecting neighborhood dynamics and housing costs — Nashville Scene

🏨 Biloxi Room Tax Proposal: The Biloxi City Council considers a 2% tax increase on hotels and short-term rentals, potentially raising the city's STR tax to the highest in Mississippi at 14%, to fund tourism and recreation — WLOX

💸 Tourism Tax Loss from Short-Term Rental Restrictions: Cities imposing strict short-term rental laws, like NYC's Local Law 18, face losing $2.4 billion in tourism taxes. Meanwhile, Airbnb has contributed over $10 billion in taxes since 2014, highlighting the tension between regulation and tourism revenue, especially as cities like NYC spend significantly on migrant services — Benzinga

🏠 Santa Fe Short-Term Rental Tax Revisions: Owners face steep tax increases as properties are reclassified from residential to nonresidential, doubling tax bills for some. The county uses business licenses and rental data to determine property use, with appeals possible for disagreeing owners — The Santa Fe New Mexican

🛏️ Zoning Amendments to Regulate Short-Term Rentals in Athens: Athens officials pass zoning rules to curb the spread of non-owner-occupied short-term rentals, particularly in single-family areas, with a "sunset" provision that may lead to legal challenges. The amendment aims to address community concerns over noise and disruption while considering potential "relief valve" options for affected owners. This legislative effort reflects the complex balance between property rights and neighborhood integrity — Athens Herald

STR LOAN SOLUTIONS by HOST FINANCIAL

💵 DSCR rates NO CHANGE from prior week.

💸 Treasury yields DECREASED slightly from prior week to 4.20%.

🏦 Conventional mortgage rates DECREASED  slightly from prior week to 6.79%.

2024 CONFERENCES & EVENTS

📅 STR conferences to learn, network, and grow in 2024:

That’s a wrap for this week!

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Happy scouting!