Real Estate Crash thread

[liv2ski]

My neighbor told me his STR is booked 95% of the time but Mammoth Properties take 50% of the rents to cover everything for him. All he does is cash a check, but damn, 50%.

[AdironRider]

Frankly, after my last two airbnb experiences were less than stellar, I'm wondering if people are reverting back to hotels somewhat as well.

First instance the place was beat to hell, broken appliances and fixtures, etc. It was a cabin built in 2018 so not old in the least.

The second instance had a list of, no joking, 23 different chores to complete prior to leaving including changing the sheets, and they had the balls to charge 200 to clean the place after I did all that. Fuck right off with that shit.

It is still a good deal if you are traveling in a big group (6+) and want a house to rent vs multiple hotel rooms, but for just my wife and I and maybe the kiddo, I'm a hotel guy.

[Supermoon]

Frankly, after my last two airbnb experiences were less than stellar, I'm wondering if people are reverting back to hotels somewhat as well.

First instance the place was beat to hell, broken appliances and fixtures, etc. It was a cabin built in 2018 so not old in the least.

The second instance had a list of, no joking, 23 different chores to complete prior to leaving including changing the sheets, and they had the balls to charge 200 to clean the place after I did all that. Fuck right off with that shit.

It is still a good deal if you are traveling in a big group (6+) and want a house to rent vs multiple hotel rooms, but for just my wife and I and maybe the kiddo, I'm a hotel guy.

Pretty much this. For traveling with just my wife and myself, airbnb is usually at least 50% more expensive after fees. More if it's only for one or two nights. Hotels are easier, cheaper, and you're a lot less likely to get screwed over last minute.

[dcpnz]

The second instance had a list of, no joking, 23 different chores to complete prior to leaving including changing the sheets, and they had the balls to charge 200 to clean the place after I did all that. Fuck right off with that shit.

Yep, F that.
Asking me to do much more than stick sheets in the washer and start the dishwasher when I leave kind of pisses me off. If I wanted to clean a god damn house I’ll stay home and do my own.

[mud]

Builder confidence at lowest level since COVID but the bounce is there.

https://www.mortgagenewsdaily.com/ne...confidence-hmi

[oldnew_guy]

Frankly, after my last two airbnb experiences were less than stellar, I'm wondering if people are reverting back to hotels somewhat as well.

First instance the place was beat to hell, broken appliances and fixtures, etc. It was a cabin built in 2018 so not old in the least.

The second instance had a list of, no joking, 23 different chores to complete prior to leaving including changing the sheets, and they had the balls to charge 200 to clean the place after I did all that. Fuck right off with that shit.

It is still a good deal if you are traveling in a big group (6+) and want a house to rent vs multiple hotel rooms, but for just my wife and I and maybe the kiddo, I'm a hotel guy.

+ a million.

Historically stripping the sheets, starting a load of laundry and starting the dishwasher was about all that a house rental required.

All this other crap is just BS and I’m guessing it goes away as the vacation surge cools off.

[Harry]

We have a couple days until everyone is here for their ski vacations, but based on last weekend the skier numbers seem way down. Great conditions and pretty much ski on for almost everything. I'll be curious to see how my STR owning clients do this winter, but I am guessing their numbers will be down significantly.

Let me know when my old place in Big Sky goes belly up. I’ll buy it back for 50 cents on the dollar [emoji3]


Sent from my iPhone using TGR Forums

[Kevo]

The really high end stuff here is full occupancy, but everywhere else has availability and discounts. You can feel the lack of people while out and about. But things usually start hopping on the 26th.

Things are eerily quiet at Targhee and around town in Driggs.

Targhee lodging is apparently at 30% capacity for Xmas week. The parking lot is empty- lot 1 parking was available at 10AM yesterday. I think lot 3 has been used only one day this year and lot 4 and 5 have yet to be used. There also hasn't been a single lift line all year. Empty chairs are the norm.

[RoooR]

Sounds like Mr. Market is about to take some STR owners for a bath. Personally if I was leveraged on a second property I'd want a more known source of revenue than short term renters.

[lowsparkco]

Sounds like Mr. Market is about to take some STR owners for a bath. Personally if I was leveraged on a second property I'd want a more known source of revenue than short term renters.

I’ve put together a few deals that were turned into STR’s. Several were empty nesters that went ahead and bought their retirement home, rent it as is, and plan on freshening it up before they move into it. None need the income from the STR to stay solvent. I haven’t seen a lot of appetite for leveraging into rental real estate since the big bust in 08.

[Foggy_Goggles]

I’ve put together a few deals

Congrats on winning realtor buzzword bingo. Do you suck your own dick before or after you buy the bottle of wine?

Every real estate transaction is leveraged unless its a cash purchase. That's what the word means.

Around here, there was a time a few years ago when you could cash flow a condo or small house with STR income. As prices increased, that became less realistic. What you do still have is people that purchase a home and STR some of the time strategically.

It is one of the odd talking point around STRs. STRs absolutely decrease the supply of LTRs, but as a business move, you would have to purchase in about 2018 or earlier to make it work.

Around Winter Park, I haven't heard anything about soft bookings for the holidays. We will see how it pans out.

[paulster2626]

Frankly, after my last two airbnb experiences were less than stellar, I'm wondering if people are reverting back to hotels somewhat as well.

First instance the place was beat to hell, broken appliances and fixtures, etc. It was a cabin built in 2018 so not old in the least.

The second instance had a list of, no joking, 23 different chores to complete prior to leaving including changing the sheets, and they had the balls to charge 200 to clean the place after I did all that. Fuck right off with that shit.

It is still a good deal if you are traveling in a big group (6+) and want a house to rent vs multiple hotel rooms, but for just my wife and I and maybe the kiddo, I'm a hotel guy.

There's a 100% chance you took a picture of this list. Can we see it for the LULZ?

A new common one I've found is taking all your garbage to some nasty disposal room.

[yeahman]

Glad to see so many people wising up about what a hassle and waste of money it is to stay in a STR. Fuck those JONGS.

[kathleenturneroverdrive]

Ugh to that. I got a shit review from an owner after staying in a remote Airbnb cabin because we couldn’t find where to put the trash, the place had zero cleaning instructions, and came with a $200 cleaning fee. So we figured the cleaners must haul it out. Nope. I was supposed to have somehow deduced that I was expected to drive the trash 5 miles away to a communal dumpster.

I also had a different Airbnb owner try to extort a friend for all these insane additional cleaning/repair fees. It was clearly a scam where the guy would make shit up about damage to the house and threaten your Airbnb rank to try to get renters to pay extra. We didn’t pay. House ended up burning down a few years later, which I would guess was an insurance scam.

Anyways. Hotels all day.

[smmokan]

+ a million.

Historically stripping the sheets, starting a load of laundry and starting the dishwasher was about all that a house rental required.

All this other crap is just BS and I’m guessing it goes away as the vacation surge cools off.

It’s a way for them to get renters to do most of the work and still charge a shit load for cleaning fees, so they can make a little extra margin by not paying their cleaners as much. I’ve seen cleaning fees of $400+ for a 3-4 night stay in a three bedroom condo, fuck that.

I use Airbnb and Vrbo a decent amount for my business, but we’ve established relationships with many of the owners so it’s a much better experience. I’m always hesitant when we have to rent a new property since you never know what you’re going to get, and I can’t risk a shitty experience.

[Foggy_Goggles]

Are these chore lists advertised ahead of time? Or are they just dropped on you when you check in?



Sent from my SM-G990U using Tapatalk

[liv2ski]

When you check in

[Toadman]

No surprise;

https://www.yahoo.com/finance/news/m...100000026.html

A report from ATTOM reveals that new mortgage originations were down 47% in the third quarter of 2022 compared to the year before. That's a 19% decrease from the previous quarter and represents the biggest annual drop in 21 years. And while the chill in the market affects all lenders, non-bank lenders — especially those who deal in NQM — are bearing the brunt of it.

[Name Redacted]

The number of Airbnbs increased 24.7% year over year.

[yeahman]

You'd have to think a lot of these places will be coming up for sale next year. The Airbnb bubble is bursting.

Just checked holiday availability in Big Sky and as somebody noted, many are still unrented. Prices appear to be slashed, unless that's just bullshit marketing. In any case, if you can't rent your "investment" out over the Christmas/New Years holiday during a great snow year, yer probably fukd as far as making money goes.

[panchosdad]

Things are eerily quiet at Targhee and around town in Driggs.

Targhee lodging is apparently at 30% capacity for Xmas week. The parking lot is empty- lot 1 parking was available at 10AM yesterday. I think lot 3 has been used only one day this year and lot 4 and 5 have yet to be used. There also hasn't been a single lift line all year. Empty chairs are the norm.

The building boom doesn't seem to have abated though. Wonder if it's the next to fall?

[fastfred]

The building boom doesn't seem to have abated though. Wonder if it's the next to fall?

well yeah it is without a doubt

the question is how far will everything fall?
watching real estate in a few different "undesirable" markets prices are still holding firm and high with the 10k or 20k price drop which is pennies on the dollar

on the other hand I'm still dealing with people who happily have heavy six figure stockpiles of cash or lines of equity to spend upgrading their homes

[4matic]

I’m still expecting big declines in yoy rent prices next year or two. The new complexes near me and all around Northern California look like China: Folsom, Lathrop, Hayward. Those are just the ones I’ve seen.

“Number of multifamily housing units under construction has risen to highest since December 1973”

https://twitter.com/LizAnnSonders/st...gGBgQRwY8PbZTQ

Throw in these household formation and population stats.

https://www.yardeni.com/pub/hseholdform.pdf

[Name Redacted]

The building boom doesn't seem to have abated though. Wonder if it's the next to fall?

I'd look at housing starts, not construction that was started back when we were in a good place with interest rates and such. Much of the construction going on right now was planned and started many months ago before rates started going up.

[Percy Rideout]

The building boom doesn't seem to have abated though. Wonder if it's the next to fall?

Colorado ski country here....

Less plan sets coming across my desk for midvalley spec homes, so that portion of residential is definitely slowing down.

High end homes are still going upvalley despite the city and county's best efforts at hitting the pause button. Also, lots of government construction projects either going already or in the pipes for 23/24. They gotta spend that sweet, sweet COVID money.

We are fairly booked out through 2023. Will be interested in 2024 projections though. We expect things to slow.