We walked away from a $708,521 STR deal in the Southeast — 15 turnkey units, great design, strong

Michael ChangJul 2, 20250m 6s1.2K viewsScore 80
Pricing & Profitability
intermediate
Pricing Strategy
Profitability
Revenue Management
Multiple Properties
Investors
M

Summary

AI-generated

The video discusses why the creator walked away from a seemingly promising STR deal involving 15 turnkey units in the Southeast, despite its fast-growing market, consistent performance, and fully operational status. The deal was rejected because the seller's asking price was 1.7x the annual cash flow, resulting in a 20-month payback period, which didn't meet their investment criteria of a 6-9 month payback (12 months max with strategic upside). The speaker emphasizes the importance of disciplined financial analysis over emotional attachment to deals to ensure portfolio performance and scalability.

Key insights

  • A key rule for this investor group is to aim for a 6-9 month payback period on STR investments, with a maximum of 12 months for deals offering strategic upside.

Mistakes to avoid

  • Don't fall in love with a deal, as emotional attachment can lead to overpaying and hinder your ability to scale.

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial