Welcome to this weeks STR Scouting Report!

• Featured STR Property: Top picks from local experts.

• STR Classifieds: Top 10 trending STR FSBO’s, off-market, listed picks.

• Market Report: AirDNA’s STR report and our thoughts about the market.

• Trending Industry Headlines: Here is what’s trending this week.

• STR Loan News: Rates and economic trends for STR financing.

Let’s dive in!

STR Scout Team

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CANDLER, NC | FEATURED STR PROPERTY
STR with Expansive Mountain Views and Dual Masters Suites

$1.25m | 2 bed | 3 bath | 3288 sqft

💰 Revenue: Contact Tyler for revenue history, details, and ideas to optimize STR revenue at this location.

• Two meticulously designed master suites

• Expansive mountain views and low maintenance grounds

• Vaulted ceilings, wet bar, flex room to maximize revenue potential.

Contact Local STR Agent:
Tyler Coon
Cell: 648-286-0251
Website

WHITEFISH, MT | FEATURED STR PROPERTY
New Upscale STR Residences Close to Glacier National Park

$1.25m | 4 bed | 4 bath | 2069 sqft

💰 Revenue: Contact John for revenue details on unit type and availability.

• Luxury living with Lake & Big Mountain Views within walking distance to downtown

• Experience the ease of thoughtful, quality, design with private garages, elevator access, high ceilings, beautiful finishes, fun entertaining layouts.

• Seller Financing and Furniture Packages Available - Turnkey Investment!

Contact Local STR Agent:
John Hayes
Cell: 850-375-4113
Website

STR HOMES FOR SALE | TOP 10 CLASSIFIEDS

😎  STR FOR SALE BY OWNER (FSBO’S)

$425k | Canyon Lake, TX: Off-market turnkey, 2023 revenues of $41k, prime 1-acre lot with secondary build location, no HOA, lake views and proximity to entertainment hubs like White Rock Amphitheater and Guadalupe river rafting! View Post

$500k | New Braunfels, TX: Wrapping up renovations, granting access before listing; Zoned commercial for STR permit, 4 bedrooms, 2 bathrooms, spacious lot, partially furnished. View Post

$649k | Gulfport, FL: Perfect STR snowbird retreat. Buy 2 houses for the price of one! Avg mid-term rent $3000/mo per unit, garage may be converted into a 3rd unit for additional income. View Post

$875k | Sevierville, TN: Hidden Springs with revenue history: $105k (2021), $116k (2022), $93k (2023). Many updates. View Post

$430k | Gulf Shores, AL: Turnkey, penthouse view 1/1, grossing 60k avg year over year with potential increase to 70k in 2024, remodeled. View Post

😎  STR LISTINGS

$2.875 | Fredricksburg, TX: Grossed over $500k. Prime Main St location, turnkey, 4.94 Airbnb rating; Texas Hill Country gem, endorsed by CNN Travel & Condé Nast, wineries, breweries, festivals, Austin/San Antonio nearby. View Post

$599k | Freeport, TX: Turnkey STR beach home in Treasure Island. Many updates and creative finance deals welcome! View Post

$785k | Nashville, TN: Price reduced $115k! Furnished 4 bdrm commercial (MUL) zoned with 3 yrs rev history $100k+ actual. Request financials. View Post

$725K | Hollywood, FL: Waterfront Gem with ocean access, updated 3/2 house, gorgeous pool, revenue projections $77K to $125k. Link to my local STR buyer list. View Post

$579k | Phoenix, AZ: Dream oasis, new luxury home with 4 bedrooms, 2 bathrooms, chef's kitchen, private heated pool, mountain views, dedicated dog run, RV parking, and paid off solar system. View Post

STR MARKET INSIGHTS
AirDNA Market Review | December 2023

AirDNA Metrics | Dec 2023 | At a Glance:

• RevPAR declined 8.1% YOY to $155.37

• Available listings reached 1.61 million, up 14.3% year-over-year (YOY)

• Total demand (nights) rose 4.3% YOY

• Occupancy was 5.8% lower YOY at 49.9% (-0.6% vs. 2019)

• Average daily rates (ADRs) fell 2.4% YOY to $311.09

• Nights booked increased 11.5% YOY

Current State the STR Market:

The AirDNA Market Review reflects the U.S. experienced a mix of record-breaking performance and economic challenges in 2023. Despite economic uncertainties such as high inflation and recession concerns, the industry demonstrated resilience, with robust job growth and stable unemployment rates.

• Key highlights include unprecedented demand in July and a surge in available listings in September.

• However, supply growth outpaced demand, leading to a decline in occupancy rates.

• Regulatory changes, particularly in cities like New York, impacted market dynamics, with some areas experiencing significant shifts in demand.

• Notably, nearby alternatives like Jersey City/Newark saw substantial demand growth as travelers sought alternative accommodations.

Implications for STR Investors:

For STR investors, understanding the economic landscape and regulatory environment is crucial. While the market faced challenges in 2023, including declining occupancy rates and regulatory hurdles, there are opportunities for investors to navigate these challenges strategically.

• Monetary policy changes, such as anticipated rate decreases and reductions in mortgage rates, could influence investment decisions.

• The market's response to regulatory changes underscores the importance of diversifying investment portfolios and being responsive to evolving market dynamics.

• Despite short-term fluctuations, the long-term outlook for the STR market remains positive.

• Investors should focus on maintaining flexibility and adapting to changing consumer behaviors and economic conditions.

STR Outlook for 2024:

Looking ahead to 2024, AirDNA’s early indicators suggest a positive outlook for the STR market. AirDNA expects strong demand growth is anticipated, driven by events such as spring break and the North American eclipse. Lead times may fluctuate in response to economic uncertainty, but overall, the market is poised for growth.

• We remain more cautiously optimistic and expect more real estate headwinds, discretionary spending pressure, regulatory challenges, and downward pressure on net cash flows in many markets.

• Investors should monitor local economic indicators, STR supply/demand trends, local regulatory developments, local real estate market supply/demand/price trends, interest rates, and consumer debt trends to find the best on emerging STR opportunities.

Our Market Outlook:

• We expect challenges to arise for STR’s in 2024. Professional STR investors will need the best STR tools and resources and underwriting skills to make smart investment decisions.

• Those investors with commitment, experience, a sharp pencil, unbiased data, and market perspective will survive.

• There is still room to thrive in 2024 and many deals to be made from motivated sellers who exit the industry.

• However, the game is much different now than when I started with my first STR in 2014; from acquisition to set up, investors and operators will need to be on top of their game to survive and thrive in 2024 and beyond.

TRENDING INDUSTRY HEADLINES

• Airbnb to announce fourth quarter and full year 2023 results

• Housing Market to change in coming months, new prediction Shows

• Keller Williams agrees to pay $70 million to settle real estate agent commission lawsuits nationwide

• Has Knoxville’s housing market hit “rock bottom”

• In less than a decade, you will wish you bought a home in these 14 metros 

• Experience the future of home tours with Zillow Immerse on Apple Vision Pro

• Guesty raises standard in short-term rental management with launch of Guesty Lite

• Short-term rental bill passes in FL senate, what you need to know

• Short-term rental owners mount opposition to Colorado property tax bill that could crush the industry

• Short-term rental chaos in New Orleans rental market, here’s why

• Utah lawmaker proposes bill to create new short-term rental guidelines, what you need to know

• Las Vegas homeowner gets $180,000 penalty for unlicensed short-term rental

• More people touring homes but that hasn’t yet translated to more sales, here is why

DSCR LOAN REPORT presented by HOST FINANCIAL

💵 DSCR loan base rates UNCHANGED from prior week.

• DSCR STR Loan Scenario Rates DECREASED from prior week:

  • 6.875% for 75% LTV

  • 7.25% for 80% LTV

  • **Floor rate is 5.99%

• Baseline DSCR loan scenario: Assumes 760+ FICO, Purchase, 30 Year Fixed, No Add’l Buydown Points.

🏦 Treasury Yields DECREASED from prior week:

• 3 YR Treasury: 3.980% / -17.0bps (5 Day Change)

• 5 YR Treasury: 3.820 % / -23.0bps (5 Day Change)

• **as of 10.05am EST Thursday 2/1/24.

📰 In The News

• Federal Reserve leaves interest rates UNCHANGED after 1/31 meeting.

• US Economy Adds 353,000 Jobs in January, above expectations of 187,000

• Powell says rate cuts in March “unlikely”.

Get a DSCR Mortgage Quote in for Purchase or Refi in Minutes!