STRonomics Don't Even Ask For The Seller's Rent Roll
This episode of STRonomics is proudly sponsored by MarketMySTR.com, the leading marketing platform for STR Industries.
Welcome to another episode of STRonomics! In this episode, hosts Bill and Kenny discuss why relying solely on rent rolls when purchasing an investment property is a mistake.
They point out that it's common for properties to be marketed based on a specific rent roll history, but the real potential often lies in property improvements. However, location is absolutely crucial, and they emphasize the importance of Location, Proximity, and Views.
Kenny shares his negotiation strategy of using rent rolls to challenge numbers and potentially negotiate a lower price or walk away from a property. Bill talks about switching agents if they push rent rolls too hard, as it may indicate inexperience in the short-term rental (STR) market.
They stress that property owners often sell "desirable" properties when they're not making money and can't show a clear revenue proforma.
Bill and Kenny advise against buying based on potential and suggest evaluating offers based on projected revenue from comparable properties in the area.
They reveal a savvy investor tactic: requesting sellers' tax returns to get a more accurate financial picture and verify if tax and rent roll figures align.
[00:03] Intro to STRonomics
[00:07] Rent Rolling
[02:22] Right Location
[05:00] Negotiations & Proformas
[06:57] Off Platform
[08:42] Kenny’s Reel
[11:08] Not Making Money
[13:02] Penciling It Out
[14:17] Paying Taxes
[15:31] Gulf Shores
[16:39] Wrapping Up
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