🔥 STR Homes for Sale: Hottest Deals & Housing Crash Signals

STR WEEKLY DEAL FLOW

🔥 Top 10 Trending STR Homes for Sale

✅ $739k | Kissimmee, FL: Fully loaded with all the amenities and close to Disney with 94.8% occupancy.

✅ $570k | Big Bear Lake, CA: This unique “A” frame grossed over $94k and is only 3 minutes to the ski resort!

✅ $300k | Pensacola, FL: The ultimate downtown cottage, many upgrades and optimized for Airbnb.

✅ $399k | Wilmington, NC: Downtown urban living that brought in $30k ytd and $48k in 2022.

✅ $380k | St. Pete, FL: Attractive location for STR and snowbird rental close to beach and downtown.

✅ $410k | Hoodsport, WA: Absolute gem tucked in the forest near Olympic National Park entrance. A must see.

✅ $549k | Inlet Beach, FL: Desirable high demand condo in prime inlet beach location along 30a.

✅ $415k | Durham, NC: STR and mid-term rental potential that draws on the college tourist crowd just minutes from Duke University.

✅ $825k | Paupack, PA: Loaded with amenities including private boat house and 70 ft dock.

✅ $1.095m | Indian Wells, CA: Unique luxury STR in desirable Indian Wells that allows 2-night minimum stays. A beauty worth a look. MLS Listing link.

🔥 STR Expert Agent Top Pick

Tyler Coon - Local STR Expert Agent

• Savvy Realty

• Asheville & Western, NC

• Cell: 828-620-2541

• Text or call to get added to my STR VIP Hot List

✅ $630k | Beech Mountain, NC: SELLER FINANCING! Incredible home walking distance to Beech Mountain Club. View listing details.

🔥 STR Expert Agent Top Pick

Cole Schlack - Local STR Expert Agent

• eXp Realty - The Resort Team

• The Big Island and Kauai (Local Team STR insider in Oahu - coming soon!)

• Cell: 808-740-0555

• Text or call to get added to my STR VIP Hot List

✅ $335k | Kauai, HI: Unheard of 12% ROI and 90% occupancy rate in this beachfront condo on beautiful Kauai. 4.9 star reviews! A must see. These deals go fast so text 808-740-0555 today!

🔥 STR Expert Agent Top Pick

Tracey Lightfoot - Local STR Expert Agent

• Lightfoot & Youngblood Real Estate Investment

• Branson, MO

• Cell: 417-251-3039

• Text or Call to get added to my STR VIP Hot List

✅ $1.250m | Hollister, MO:  MOTIVATED SELLER! PRICE REDUCED $45,000! This 9 bed, 9 bath lodge was built in 2023. Seller willing to carry or do a “subject to” deal. Value, creativity, quality, prime STR destination!

💰STR Sellers: Thinking of selling? Post your property and reach 95,000 STR active STR buyers and 40000 newsletter subscribers. It’s free.

MORTGAGE RATE WATCH

Interest Rates Surge to 22 Year High

 🔦 What is happening: The current state of mortgage rates is a matter of concern, as they have recently reached a peak not seen in the past 22 years. The average rate for a 30-year mortgage has risen to 7.31%, the average quote for a conventional 30-year loan tends to range between 7.5% and 7.65%.

💡 Why does it matter: This has an adverse impact on the demand within the housing market, and detrimental effect on the cash flow of investment property. Consequently, capitalization rates and cashflow have experienced a decline. Both pending new home sales and existing home sales have plummeted, reflecting the current record-low demand for housing.

🔮 What happens next: At current rate levels, buyer demand will continue to decrease, while the availability of housing inventory remains limited. At some point, the Fed will break the market.

• In order to accommodate the diminished demand and attract qualified buyers, sellers who are compelled to sell their properties will likely be compelled to lower their prices. 

• Should high mortgage rates persist or continue to rise, billions of home equity could erode as prices adjust to meet the demand.

• Consequently, there is a potential for an increase in short-sales, seller carry (wrap around mortgages), and "subject-to" sales to offer creative solutions to exit high leverage assets.

RENTAL RATE REPORT

September 2023 Rent Report Trends

 🔑 Key Takeaways: Long term rental trends and the potential impact on mid-term and long-term furnished rentals.

📉 National Rent Trends Report 2023

• While national rent prices increased by 0.71 percent in August compared to July, a growing number of markets are experiencing declines in long term rental rates.

• In the highest decreasing rental markets, such as Portland-Vancouver-Hillsboro, OR-WA, and Las Vegas-Henderson-Paradise, NV, which saw declines of -13.41 percent and -11.90 percent.

• Respectively, the impact on mid-term and long-term furnished rentals could be of growing concern for declining LTR markets.

• Investors in declining markets may face challenges in maintaining rental income for mid-term and long-term furnished rentals, potentially leading to longer vacancies and reduced profitability.

💣 Investors Strategies

• To counteract this, property owners may need to offer competitive pricing and consider additional amenities or services to make their furnished rentals more appealing.

• Investors should also explore diversifying their portfolios by considering markets with more stable rental rate trends for their mid-term and long-term furnished rentals to mitigate potential income fluctuations.

🤘 Regional Variations

• The highest decreasing rental markets are primarily located in the Western region of the United States at this time, where market conditions have contributed to declining rental rates.

• Investors in all markets should assess the potential impact on long-term rental rates in case they have to shift to Plan B (converting STR to Mid or LTR).

• This may include adjusting pricing structures and offering incentives to attract tenants to their furnished rentals.

• Exploring markets with more favorable rental rate trends for furnished rentals or enhancing the quality of furnished rental properties through renovations and amenities can help property owners and investors navigate these challenging conditions.

🔮 Crystal Ball Strategies for Furnished Mid and Long-Term Rentals

• The impact of decreasing long-term rental rates should be monitored in markets where you own or are considering buying an STR.

• A growing number of STR investors are shifting to mid-term and long-term furnished rental strategies to generate revenue.

• It is important to monitor the changing LTR rental environment and adjust your strategy accordingly to remain competitive.

TRENDING HEADLINES

🏦 DSCR Cash Out Loans: Tap your STR equity with the most competitive DSCR cash-out short-term rental loan. Get a Quote in 60 seconds to see if you qualify.