Property Analysis: Lake Anna, Virginia

Walk through a short-term rental property analysis with me! Its always an adventure; never know what we'll learn.

One goal I have for 2024 is to help as many folks BUY RIGHT when getting into short-term rentals. I've worked with a lot of folks who came to me who said "I wish I'd know that BEFORE I bought". I'm committed to giving more real world examples outside of my pay wall; so at least once a month I'll publish a video analysis. If you have a market you'd like to see analyzed, I'm always open to suggestions!

Now, if you've spend any time with me you know I think these "Best of" lists of places to invest in short-term rentals are misleading. While they can be a resource for exploring markets, the measures are rarely correct. The easy button rarely shows up; much like a well-trained Jedi, though, with practice you'll be able to almost intuit what makes a great investment with minimal time looking.

So this week I opted to take a location from a recent "Best of" list. I wanted to do it because I actually looked at this market in 2022 when it made Vacasa's "Best Place to Invest in STR" list, and now its showed up on Bigger Pockets "Top 5 Places to Invest in Short-term Rentals". So, lets take a look at Lake Anna.

In the end, this short query into a property on Lake Anna ends because of the back of the envelop numbers and an understanding that the regulatory shifts in this market suggest its not eligible as an STR. So a few take aways;

1. The median home price and the home price for a good short-term rental are rarely the same (hint; a good STR is usually well above median)

2. Taking a minute to understand a little bit about the regulatory environment will save you lots of time

3. The "back of the envelop" analysis is the annualized total expense of taking a loan out on the potential property today (mortgage, interest, property tax, and insurance) with a general multiplier to estimate expenses. On the more expensive properties I use 1.30, on mid-range I use 1.4 and lower budget these days I often use 1.5

4. AirDNA numbers are good..to a point.

As always, this is one property and a short foray into the data. If it were a market I really wanted to be in, I'd spend hours digging in to understand the regulatory environment in the different townships and cities, the price drivers, and talking with a short-term rental focused realtor. One of my markets hit the "Best of List" a couple years ago - it actually drew my attention in a more focused way on that specific market, but it was a couple of months and a lot of properties analyzed before I found "the one" - I could see the potential, but as always - the property matters a lot.

*******

Looking for Expert Input to Your Deal? Or wondering if your existing STR is netting all it can? Leverage my experience and expertise and get eyes on your deal. Learn More HERE.

If you'd like to receive updates from The CEO Host, join our email list. No spam, just the occasional update to help your Short-term Rental business! Sign Up HERE

Find Me on FACEBOOK or Instagram or LinkedIn as @theceohost

*****

Hey Boss! I'm Kate, owner/founder of The CEO Host. If you are interested in taking a leap into short-term rentals - or have some questions about your existing business, my goal - passion, and career, is to help YOU succeed. I've coached hundreds of folks getting started or looking to optimize, analyzed more deals (and duds) than I could count, completed thousands of hours of education and training, attended conferences... So don't be shy. A good CEO knows to bring in expert help - and that's what I'm here for! Lets HOP ON A CALL and chat!

Categories: : property analysis