How Much Do Short Term Rentals Make in Broken Bow? A Deep Dive Into Vacation Rental Income Potential

Avery Carl [00:00:02]:
Hey guys, it’s your host Avery Carle with the Short Term Shop. And I’m really excited to dive into the Broken Bow market with you guys. We’ve got 10 episodes on everything you need to know about investing in short term rentals in Broken Bow. A couple notes that I want to give you guys before we get started. Any up to date purchase prices or income numbers on this market you can find on our website theshortermshop.com and if you’re ready to buy with us in any of the 20 markets that we work in, not just Broken Bow, if you want to work with one of our agents in any of those markets, you can email us at agents the shorttermshop.com be sure to follow us on YouTube and Instagram and Facebook at the Short Term Shop and of course join our Facebook group. It’s called Short Term Rental Long Term Wealth. It’s just me and 60,000 of my closest friends in there talking about short term rentals all day, every day. Again, if you need anything from us, you can email us@agentshorttermshop.com let’s dive into Broken Bow.

Avery Carl [00:01:11]:
Hey guys, welcome back to the Short Term show special episode series. We’re on episode three of Broken Bow. Today we are going to talk about income and numbers. We are not going to talk about expenses. Those are going to be on the next episode. But today we are talking about all things income with some very familiar faces. If you’ve listened to not only this series, but other series on other markets that we have, we’ve got Kathy, our expert agent in Broken Bow. You want to introduce yourself really quick, Kathy, even though they’re familiar with you.

Cathy Craig [00:01:38]:
Kathy Craig, I work in Broken Bow. I have multiple SCRs of my own and 25 long term. So been doing this a long time and I love Broken Bow. We have a great time up here.

Avery Carl [00:01:50]:
All right, and next we have the Airbnb data guy, John Bianchi here to talk through the data with us. So, John, do you want to introduce yourself to those who may not be familiar with you yet?

John Bianchi [00:02:01]:
Sure thing. Again, always thanks for having me here. Always appreciate it. But for anyone who doesn’t know me, I’m John Bianchi, the Airbnb data guy. I am the head of data for TechVestor, which is a short term rental investment fund, the largest one in America. And we have bought 120 properties in the past 18 months. 72 of those we have live and 72 for 72 are cash flow positive good properties. So we have, we have not missed as of yet.

John Bianchi [00:02:27]:
And additionally I also have my own Airbnb data consulting business coming out with the software and have three free Airbnb data courses on YouTube as well. Strongly recommend everyone to check those. So awesome.

Avery Carl [00:02:37]:
Thank you very much. So today we’re going to talk about numbers, but before we do that, we’re going to touch on analysis just very quickly for those of you who are not familiar with analyzing short term rentals. So typically the metric that is used most often when it comes to analyzing short term rentals is cash on cash return. And that can be a number of things, but typically cash it is going to be the amount of money that you put into a deal up front. So that’s your down payment, your closing costs, any rehab costs that you do versus the amount of money that you have in your bank account at the end of the year after all your mortgages are paid, after all expenses and expressed as a percentage. So that’s going to be your cash on cash return. That’s typically what we look at when we are measuring their performance of short term rentals. We’re going to talk mostly about income today.

Avery Carl [00:03:26]:
So it can be a true apples to apples comparison because once you start looking at cash on cash, returns of properties, they are, are very subjective to how much somebody puts down, what their interest rate is, what type of loan they’re getting, things like that, all the way down to just slight differences in management. So in order to keep everything apples to apples, we’re just going to talk mainly about income. So John, without further ado, would you like to kind of give us an overview of what you found in the data for Broken Boat, Oklahoma?

Speaker D [00:03:57]:
Sure.

John Bianchi [00:03:58]:
So I’m super intrigued by Broken Bow. I find it just as, you know, a Canadian and somebody who’s never been there. Just to see all these new builds that are going into Broken Bow and like how beautiful the properties are is extremely interesting. So the revenue as well is also interesting because of that. There’s obviously a lot of money to be made in that specific area. And I’m just going to start off by saying that I think this is going to be like the, the next Gatlinburg in a sense where people will are how do I mean that there’s still a lot of room for improvement with these properties in comparison to what you see in Gatlinburg. And so what I mean by that is that, you know, at one point someone in Gatlinburg put an indoor pool into their property and then everybody started putting indoor pools into the Properties because they saw that drove up revenue and then they were starting to do all these different little things and you would like add a movie theater, then you see other people add movie theaters and you’d see all these different little things kind of trickle in around the amenities side. So but beyond just the home, it would also be the.

John Bianchi [00:04:56]:
Just the amenities. And, and I feel like this market lacks amenities and is something that you will see a lot more of over time as people get smarter and smarter and try and outdo their competition as time continue, continues to go on. So that’s one little insight that doesn’t necessarily have to do with the numbers, but in my opinion, I think that there’s room for improvement with what you would see here. Now, what I always do whenever I’m looking into these markets and this is actually something I started developing for this podcast and it turns out to be extremely beneficial that I take all the revenue for the area and break it up by the bedroom count and I kind of put them in order side by side where I’m just looking at the revenue of how much all the three bedrooms make. How much do all the two bedrooms make?

Speaker D [00:05:38]:
Right.

John Bianchi [00:05:39]:
And the interesting thing that always tends to happen is that you, you can see that one bedroom count actually outperforms another bedroom count when you wouldn’t think that would be the case.

Speaker D [00:05:48]:
Right.

John Bianchi [00:05:49]:
So without a doubt, the three bedrooms within this area are performing extremely well. Like for. For the size of their property, they’re performing extremely well. Now mind you, there’s the most of the properties are three bedrooms. However, the most of these three bedrooms are outperforming the four bedrooms, which is just to me like a super clear indicator that why would you go for a four bedroom. For three bedroom could do almost the exact same amount of revenue.

Speaker D [00:06:12]:
Right.

Avery Carl [00:06:12]:
Especially interesting. And I don’t want to interrupt you, but no worries. Yeah, I’ve seen in other markets sometimes that a three bedroom can be kind of like a no man’s land. Like it only makes a little bit more than a two bed, but a four bed makes a lot more. So it’s opposite here.

John Bianchi [00:06:26]:
Yeah, exactly. Yes. Which is. Do you. Kathy, you sound like you got something.

Cathy Craig [00:06:29]:
Well, okay, so this is really interesting about Broken Foe. Broken Bow is a little bit of a time warp. Oklahoma is a little bit of a time warp technology wise where realtors are concerned. I am in Oklahoma and from here, but I did live in Houston for 28 years, so one of the largest markets in the country. When you see a three bedroom, you have to really look, because the three bedrooms, I would say 50 or 60% of the time are a three bedroom with a loft with bunk beds. So they’ll list it as a three bedroom, but it really has a whole other room with bunk beds.

John Bianchi [00:07:12]:
So would that be happening with the two bedrooms as well? Because. Because technically. Because what is likely happening here is that these are two bedroom homes with a loft and they’re turning it into the loft into a bunk bedroom and then they’re showing up as three bedrooms on Airbnb.

Avery Carl [00:07:24]:
That’s probably happening.

Cathy Craig [00:07:27]:
Oh, go ahead, happen. Anyway, but what, what I see happening is people. Yeah, I mean it can’t. Yeah, that could be happening. I mean, I think it happens at every stage.

Speaker D [00:07:37]:
Every stage.

John Bianchi [00:07:38]:
Yeah.

Avery Carl [00:07:38]:
Okay.

Cathy Craig [00:07:40]:
Stage now.

Avery Carl [00:07:41]:
Okay, so this is an important thing to remember then, I think because this happens in several of our mountain markets where it’ll be listed as like a 2 or a 3 because maybe the septic smaller or they’re not counting that extra loft area as a bedroom. So when you put it on Airbnb, like I own several like this where they’ technically a one bedroom on the mls, but on Airbnb they’re actually two bedrooms. So you’re saying, Kathy, that when we’re looking on the mls, we need to make sure that we’re looking at all sleeping areas to make sure it might be listed as a three bed, but it might actually sleep like a four bed, which would then be showing up as a four bed on John’s data or a two bed showing up.

Cathy Craig [00:08:19]:
It’s the MLS where they do not put it, where you have to like really, really read it because you’ll see something that have a lot of clients that will pass something up that, that they think is a two bedroom. It’s really sleeps a lot more than that or you know, something else because we’re, you know, we, we have a lot of things that most people don’t. So.

John Bianchi [00:08:40]:
Yep, that, so that actually doesn’t surprise me even a little bit, especially after looking at all the properties you have. There’s so many two bedrooms that are like 2,000 square feet and even one bedrooms that are, that are over a thousand square feet. It’s like they’re these massive properties for the amount of bedrooms that they’re that they have. And also on top of that broken bow is in my opinion the like leading location for bunk bed game rooms. So if you were to look in all of these properties, there’s so many of them where they have all these stacked up bunk beds that are built into the wall and then they’ll have a game room right beside that.

Speaker D [00:09:16]:
Right.

John Bianchi [00:09:16]:
And it’s super interesting. I think it’s a great use of space. It makes a lot of sense. And that is probably the lofted general area kind of what you’re referring to, that they’re able to turn into another sleeping area. So that’s even more interesting because one other thing that I noticed when I was going through this is that the two bedrooms were roughly the same price as the three bedrooms. Right. And so now, like, if you were to go and you were to look at all the different properties that are out there, there’s a big range.

Speaker D [00:09:40]:
Right.

John Bianchi [00:09:41]:
So like, I just looked at all three bedrooms or. Sorry, I just looked at the two bedrooms and they can go for a million or they can go for like 500,000. And there’s a ton of properties in between there. And then the three bedrooms are kind of in that same sort of range as well, with there just being more options for over a million dollars. However, if you’re telling me that, you know, a lot of these two bedrooms come with a lofted space that could be turned into a three bedroom on Airbnb, then the reality is that the two bedrooms that are for sale, that could be three bedrooms that are roughly the same price as a regular three bedroom already would technically be the best thing. And then if you can convert it into that three bedroom. Is that making sense what I’m saying?

Cathy Craig [00:10:16]:
Yeah. Or it can already be like, I mean, it’s, it’s the way they’re listing it on mls. You have to really talked, you know, you have to talk to me, and we have to really look at it because sometimes they won’t even list it in the descriptions, it’s just in the picture. So people are passing up things that are just super great deals because the MLS hasn’t listed it or the agent hasn’t listed it correctly. So you can have a three bedroom that’s really a four. You could sleep like a four or a two that you sleep like a three. It’s really an individual kind of thing. And then of course, there’s the one bedrooms, which I’m sure you’ll get to.

Cathy Craig [00:10:50]:
But I mean, it’s, it’s a, it’s, it’s the kind of market where there’s so much opportunity because it’s like, it’s like the, you know, an MLS listing that has horrible pictures, but it’s really gorgeous in person. Right. That’s your deal, because nobody’s looking at it. And so there’s a lot of things like that here where people are just scooping up things because, you know, and that’s why I tell clients, look, I’m going to send you, I know you want a three bedroom, but the ones that I send you can sleep like a three bedroom. You know, don’t discard it because we can, you know, really make it work.

John Bianchi [00:11:27]:
Yeah, that’d be the inefficiency within the market, which is something that I always like to look for.

Speaker D [00:11:30]:
Right.

John Bianchi [00:11:32]:
And kind of to, to continue on that. So that is that. I’m glad we cleared that up right off the bat because that is something I find super interesting about this market, especially with the new builds and the way they’re built and like how the size that they’re built.

Speaker D [00:11:45]:
Right.

John Bianchi [00:11:45]:
So there’s, there, there’s that opportunity there. I’ve got a lot of other little things that I kind of noticed about the market. So one being that almost all of the properties are secluded. It seems like every single property that is, you know, performing well or whatnot is in its own space. It’s got the forest around it in some sort of way, which just kept showing up over and over and over again with a lot of the properties I was looking at. And then, but then on top of that, a lot of these people were not actually maximizing their backyards. They were. They.

John Bianchi [00:12:12]:
Most of the Airbnb listings I was seeing had fairly boring backyards in them. To be honest. I actually find Broken Boat to be a fairly complicated market due to how nice the homes are built. And so what I mean by that is you have all these brand new builds and they’re great pieces of property.

Speaker D [00:12:31]:
Right.

John Bianchi [00:12:31]:
And usually what tends to happen when you have these beautiful properties in these beautiful areas is that you get people with money who don’t want to actually manage the properties, but they tend to just buy the properties and have somebody else manage them for them.

Speaker D [00:12:44]:
Right.

John Bianchi [00:12:44]:
And so then now what you have are a good amount of people who are not managing their property like an individual owner would be.

Speaker D [00:12:52]:
Right.

John Bianchi [00:12:53]:
Because individual owners tend to put way more into it, especially people who don’t have a ton of money. They put a lot of more love into that property and it tends to perform a little bit better.

Speaker D [00:13:01]:
Right.

John Bianchi [00:13:02]:
And so what you end up having is you have a property that is maybe an older looking property or, or not as nice as a property outperforming these absolutely beautiful new builds that look like they should just be. Absolutely, should be absolutely crushing it.

Speaker D [00:13:16]:
Right.

John Bianchi [00:13:17]:
This is something that I Notice as I’m going through the data, I’m like, I’d be going through and I’d be like, this home is so nice. It’s a, you know, brand new build. It, it looks beautiful, it seems to have all the things you would want to have, but it’s not hitting the numbers that this other home, which is not as as much of a new build, but it’s, it’s clearly outperforming and you can, you can. And once you see this enough times, you’ve gone through enough data, enough information, enough different markets, you start to realize that there’s, there’s these underlying reasons behind why this is happening. It’s likely due to the way it’s being managed, the way it’s being priced, the way it’s being promoted, those different things that’s causing that to happen. And the reason I’m pointing this out right now is because other people are going to go into this market and take a look at all this data and they’re going to go, well, if I don’t have this multimillion dollar new build, I’m not going to be able to hit the numbers that I want to be able to hit.

Speaker D [00:14:03]:
Right.

John Bianchi [00:14:04]:
Which I don’t think is going to be the case in this area. I think it’s more of just understanding that there’s not a lot of people that are providing a extremely curated experience for the people that are going to be going to this area and that you could take a slightly more affordable home and give that same experience or a heightened experience to these people, even though it’s not a brand new build. So that makes sense.

Avery Carl [00:14:27]:
Okay, yes. So you’re saying that the performance is as subjective to how well it’s managed as it is to the quality of the property itself, which we tell our clients a lot of times that the rental history doesn’t necessarily mean anything because if it’s being managed by one of these big old dinosaur property management companies that isn’t optimizing it the way it should be, or just, you know, a person who isn’t optimizing it the way that it should be, that those numbers will not reflect the potential of the property.

John Bianchi [00:14:59]:
Exactly. Yes. And go ahead.

Cathy Craig [00:15:01]:
That is 100% correct. And broken Boat it up until a few years ago was pretty much all property management companies and they are dinosaurs and they’ve been there a very long time and they set it and forget it. And so there is a ton of upside for people that want to put a little love into it, whether it is Lights or swings in the backyard or everything pretty much has a fire pit and a hot tub, but people are starting to put in circle swings and, you know, cool gyms, jungle gyms outside and stuff for kids. Lots of outdoor areas. So there is a ton of upside for people because just the personalization of the property and paying attention to it. Our STS clients have done extraordinarily well with that. Just putting a little love into it has made a huge difference.

John Bianchi [00:15:59]:
Yeah. So to kind of add on to that.

Speaker D [00:16:01]:
Right.

John Bianchi [00:16:02]:
Some things I notice is, you know, these bunk bed game rooms that I was referring to, most of them are for kids. And if you were to look at them, they look like they’re for adults. They look like these sort of staged home, kind of boring looking game rooms that a kid would look at that not get excited. Right. There’s almost. There’s no color to it. There’s no like kid things in the game room. It’s just more of like this adult sort of setup, but in a, in a bunk bed, a room for kids.

John Bianchi [00:16:27]:
It just doesn’t make logical sense.

Speaker D [00:16:29]:
Right.

John Bianchi [00:16:30]:
And then another thing I noticed was that a lot of these properties were like, everybody, everybody shows off the, what their property looks like from the front and this new build with the lights and how beautiful it looks, which is very similar to what you would see if you go on the mls. And then they also show off the interior. Like, look at our kitchen. Look at our high ceilings in the living room. And I look at this and I’m like, everybody has this and. But nobody’s showing off all of the entertainment and fun and amenities that you’re going to get from staying at that place.

Speaker D [00:16:59]:
Right.

John Bianchi [00:16:59]:
There’s no com. Like, if everybody has a brand new build, there’s no competitive advantage to having a brand new build.

Speaker D [00:17:04]:
Right.

John Bianchi [00:17:04]:
It’s almost like showing off that you, you’re like, hey, guess what? I have a kitchen. It’s like every single Airbnb has a kitchen. Why are you highlighting that as like the main feature? It’s like show off what is actually going to be interesting and a competitive advantage about your property that’s going to allow you to perform a little bit better. So anyways, that was one of the things that I noticed about this market. I know that’s not directly tied to, you know, what are the numbers for this prop. For this market, but it’s a, it’s affecting the numbers in this market. And that’s why I’m kind of spending a lot of time talking about it right now.

Speaker D [00:17:32]:
Right.

Cathy Craig [00:17:32]:
So Anyways, define new build, because everything in Broken Bow is new, sort of. There are some homes that were built in the 1990s, and we’ve been there for 150 years. But.

Avery Carl [00:17:48]:
The.

Cathy Craig [00:17:49]:
The ones that were built in the 60s, 70s, 80s, those have all been torn down. So pretty much everything that you look at in Bro Broken Boat is going to be 2005 and above. So it. It’s, you know, newer when you look at other markets. So, you know, it doesn’t have to be. There are a lot of new builds, for sure. A lot of those new builds are in the wrong area. They’re an area 10 miles out of town, which we’ll get to that.

Cathy Craig [00:18:15]:
But, you know, it doesn’t have to be a new build and broken.

John Bianchi [00:18:19]:
Actually, that’s a good question. I. What you said 10 miles out of town.

Avery Carl [00:18:23]:
The.

John Bianchi [00:18:23]:
I’m gonna get this wrong. I know it. Hoocha Town. Is that okay? That was better than. That was better than yesterday.

Avery Carl [00:18:32]:
It’s Hocha Town.

John Bianchi [00:18:33]:
Hocha. Okay. Is that. Would that be considered 10 miles out of town, or would that be considered where to be?

Cathy Craig [00:18:39]:
So let me explain how this works. So if you’re looking at a map, you’ll see a 250. There’s 259, which runs through the middle of everything, kind of like a Branson, Missouri type right in the middle. And then you’ll see a 259A, which is a circle that goes to the east that is. Goes through the lake area. Okay. Ho Cha town is actually, if you think of it this way, Hoja Town used to be where the lake is. Okay.

Cathy Craig [00:19:11]:
It was covered up when they built the lake. Okay. So Hoja Town is really right there on 259 where the lake is. It. It all has a Broken Bow address. Everything does. Ho Chi town was just recently incorporated, so everything is really Broken Bow as far as an address is concerned. Hocha Town now has its.

Cathy Craig [00:19:32]:
It’s going to get its own zip code, but Hocha Town is right in the middle. Okay, so Hoja is right where that 259A circle is. Okay.

John Bianchi [00:19:43]:
Yep.

Cathy Craig [00:19:43]:
When I say 10 miles out. If you go 10 miles. So there’s a lot of neighborhoods that are on something called Carter Mountain. East Carter Mountain, West Carter mountain. Those are 9 to 10 miles from that 259A area right at that split. And that’s where the casino is going to be. Okay. The ones that are that far up, which it doesn’t seem like it’s a long ways, but there’s Nothing up there.

Cathy Craig [00:20:09]:
So the issue that we’re. That’s starting to happen is that because we’re, because it’s so far and there’s nothing up there with traffic, it’s taking you 30 to 45 minutes to get to. Right. So our focus really is more in the center. For my clients, the SES clients in the. More in the center. Unless you just prefer to be, you know, way out there. Because there’s literally.

Cathy Craig [00:20:35]:
And the roads are rough off of 259 in that area. So it’s, it’s a rougher. They’re beautiful. They’re all new builds. But it is a rougher, you know, area.

John Bianchi [00:20:46]:
Yeah, gotcha. So the reason, the reason that I asked about that is because pretty well every single property that’s doing over $150,000 is in the Hocha town area. So like they’re almost all in that general space right there.

Avery Carl [00:21:00]:
So it’s probably that Hocha town area that envelops everything. It’s kind of like the Smokies, where the Sevierville dot on the map is like way up here. But Sevierville unincorporated, like envelops Pigeon Forge and Gatlinburg. So even if stuff is like one step outside of the city limits of Gatlinburg, it’s going to have a Sevierville address, even though it’s not actually in Sevierville. So I think it’s kind of the same thing.

Cathy Craig [00:21:21]:
Here it is. Everything is hedgertown, everything is broken bow. It is the same thing.

John Bianchi [00:21:26]:
Yeah. Where that, that, the, the 259A. That sort of split that you’re talking about there, like, that’s kind of what I’m referring to. Where the, that, that’s the general spot that I’m, I’m trying to say, like right to the left of the lake. Let’s put that way, if you’re looking at a map, right?

Cathy Craig [00:21:39]:
So it’s within, it’s typically within three to four miles north, east, south and west. Just a circle right there.

John Bianchi [00:21:47]:
Yeah, yeah, yeah.

Avery Carl [00:21:49]:
All right, cool.

John Bianchi [00:21:51]:
So, which is interesting, you know, I mean, for me as an outsider looking in and I look at the, I look at the area and I can see that all of the higher performing properties right there. It’s like, well, I’m just going to look there, you know what I mean? I’m like, what’s, what’s going on there? At least that’s where I’m going to start my research.

Speaker D [00:22:03]:
Right.

John Bianchi [00:22:04]:
To be able to understand it. So thought that was super interesting. Another little thing Was that, you know, none of the three bedrooms over a certain size were. Sorry, most properties did not have views until they had. Until their three bedrooms are larger, which was another common. There’s another thing that I noticed.

Cathy Craig [00:22:18]:
Let’s talk about that real quick. So when you talk about views, there’s no. I don’t know how to say this. There’s no really such thing in Oklahoma. I mean, we are mountains in the technical sense only. Right. So they’re big hills, but they’re mountains in the technical sense. So when you see a view, it’s typically something that’s just higher up.

Cathy Craig [00:22:43]:
So I mean, it’s a very, you know, I mean, it’s a curvy. I mean, it’s, you know, But a view is not important there. Most people don’t have it. There are no lake views. There are no true mountain views. It’s just not something that is. 90 of them don’t have any views. There’s just nothing to view except, I mean, look at the window and you see woods.

Cathy Craig [00:23:04]:
That’s what you’re gonna see. But you’re not gonna see the typical Smokies or that kind of view. It’s just. It’s just not there.

John Bianchi [00:23:11]:
Yeah, so I, I can tell that that’s a. Something that you have to fight against with clients, I’m guessing. Yeah. So the reality is that a lot of the. I mean, if you just go and look at the top performing properties, the vast majority of them, or pretty well, everybody doesn’t have a view.

Speaker D [00:23:24]:
Right.

John Bianchi [00:23:24]:
So then therefore it does not matter.

Speaker D [00:23:26]:
Right.

John Bianchi [00:23:27]:
So I agree with you on that. Just want to point out that I thought it was interesting that it didn’t show up till three bedrooms. So for whatever reason, two bedrooms didn’t have that. But the other thing I want to point out that has to deal with numbers is kind of the last one I think I have here is the one bedrooms do significantly better than the studios. So. But there’s only a handful of studios. But there is like a very clear difference between the two, between a one bedroom and a studio. In the revenue potential of those properties.

John Bianchi [00:23:55]:
It just seemed like a lot of the studios were older builds. Maybe like nobody’s building studio cabins anymore. And I’m not surprised by that because the studio cabins are not a common thing. The one bedrooms seem to be like the newer, nicer sort of properties and the revenue reflected that very clearly.

Cathy Craig [00:24:09]:
Yeah, our one. Our one bedrooms. And as you mentioned earlier, a lot of them are pretty big and then they’re a thousand square feet they’re, you know, 900, 800 square feet. They’re not 400 square feet. Our one bedrooms. There are one bedrooms that outperform two bedrooms. So we are a huge one bedroom community. A lot of couples, a lot of small families.

Cathy Craig [00:24:34]:
A lot of our one bedrooms do have a loft. You know, there’s one on the market now that’s $600,000. It’s on 2 acres and it’s doing $97,000 a year. So you know, it’s, it’s a, it’s a big deal. Our one bedrooms are huge. So a lot of the sts clients are starting with a one bedroom, doing really well and then buying another that’s a little bit bigger. But our one bedrooms are, they’re booked constantly. We’re an all year round place.

Cathy Craig [00:25:03]:
This is one of our, we get really busy in the fall. So one bedrooms are definitely really, really good. In Broken Bone, that’s something that a lot of the clients that have bought in the Smokies or other areas, they don’t really understand it and once they do it, they’re like, oh my gosh, this is, you know, I’m so glad I did this and, and got a one bedroom.

John Bianchi [00:25:25]:
Yeah, I, I didn’t mean. The data clearly shows that because they, I’m looking at 27 properties right now that are all doing over 75, 000 as one bedrooms, which is a, a lot for a market.

Speaker D [00:25:35]:
Right.

John Bianchi [00:25:36]:
And they, they, they’re up in. It’s not just like a hint, like it’s not like majority are doing 70 either. Actually fewer doing fewer are doing 70. Out of that 27 properties I’m looking at. And, and then the one bedrooms, you know, or sorry, the two bedrooms are not like significantly higher.

Speaker D [00:25:51]:
Right.

John Bianchi [00:25:51]:
So it’s not like this huge jump from one to a two. So I agree with the, the fact that the one bedrooms are doing really well. The data clearly shows that. And again, it comes kind of comes back to that romantic getaway for couples going out to that area and wanting a place like this. But also those one bedrooms are just absolutely beautiful. This is actually an interesting thing because a lot of the times I can find there’s sometimes where I find these properties that are one bedrooms. They create this romantic getaway and the properties really aren’t that luxurious. Right.

John Bianchi [00:26:19]:
Like it’s almost like it’s, they’re only paying because it’s a romantic getaway. They’re not paying because it’s a luxury property. Whereas with a lot of these one bedrooms, they are these higher End properties that are worth the amount of money that you’re paying on that nightly rate to be actually staying at.

Speaker D [00:26:32]:
Right.

John Bianchi [00:26:32]:
You’re getting high end for you’re getting a high end property along with your romantic getaway. So it makes a lot more logical sense that people would be willing to pay, you know, whatever that costs on a nightly basis. So. Which is interesting. I just realized that as I was talking about it. But anyways, those are, that’s everything that I kind of noticed about the area. I think if I was going into the market, I would stay up in the, the Hoocha Town area. I hope I said that right.

John Bianchi [00:26:54]:
Hochtown and Hoochie Town.

Cathy Craig [00:26:57]:
Yeah, that’s about right.

John Bianchi [00:26:59]:
Yeah, I’d be looking, I’d be looking up there. I would definitely be, you know, studying the one bedrooms and then I’d also be looking into the two bedrooms that had a lofted space. And I would be without a doubt trying to figure out a way to create a better experience than what everybody else has around me that would be more desirable. Focusing in on more of the amenities and trying to one up people that way. And then lastly, I had one other thing I wanted to add in there and I can’t remember it. Oh, well, I can’t remember it. So it wasn’t that important is what it is. But that’s what I’d be.

John Bianchi [00:27:26]:
Oh, sorry. There are some cabins that look a little bit older.

Speaker D [00:27:30]:
Right.

John Bianchi [00:27:30]:
Like you can tell there’s some that are older in comparison to the other ones. I didn’t get to do this. But what I would have done if we were going to that market is I would have studied the older looking properties to understand what their revenue potential would have been because they’re a fraction of the cost in comparison to the brand, brand brand new builds. And so I would have seen like what is the potential with those ones because they’re definitely making less money, but I don’t know how much less. And so I would actually would have compiled a list of all the ones I would have considered to be older even though they’re not that old and seen what their revenue is and then compare that directly to the price of those properties for one bedrooms and three bedrooms and all those different things. So just for anyone who wants to do that research project.

Avery Carl [00:28:07]:
Yeah, 2005, nowadays, I mean, we don’t like to realize this, but 2005 is almost 20 years ago now. So, you know, technically a little bit not old, but a little bit older. Like a 2015 or 2019 build is going to look vastly different than a 2008 or 10 build. So, yeah, I think that’s. That’s very interesting.

John Bianchi [00:28:27]:
Yeah.

Cathy Craig [00:28:28]:
So one thing I want to mention is that we have a pretty diversified group of people that come to Broken Bow. I mean, you know, the bigger North Texas has gotten in Dallas has moved north, the bigger Broken Bow has gotten, but we do get people from everywhere. So you get a pretty good swath of people that want different things. For the longest time. The longest time, it’s all relative. For the last couple of years, everybody wanted modern. You know, all the windows, glass, those kinds of cabins. Now we’re kind of.

Cathy Craig [00:29:01]:
It’s reverting back to more of a cabiny cabin. So it doesn’t really matter which one you like personally or, you know, the. The buyer, what you like personally. If you want something that’s more cavity or you want something that’s more modern, either one of them will do well. So you have people that really do want that rustic kind of, you know, really cabin getaway, and then you have others that want that more modern feeling place. So we get. We get all those people. I think the biggest thing with Broken Bow is, like you said, John, amenities, people doing things to their cabins.

Cathy Craig [00:29:41]:
But the biggest thing that I see that our clients capitalize on is just answering people’s questions, just being available. I cannot tell you how many times they’ve gotten reservations because they. Somebody tried to book with a management company and nobody answered them. A lot of these management companies only have it on, and even other people, they only have it on one or the other. Airbnb or vrbo, it’s not both. So all fine cabins, they’re doing really well, and they’re still not on one or the other platform. So that’s just another boost. So there’s all kinds of things in this market that people just aren’t doing that with just a little bit of attention.

Cathy Craig [00:30:29]:
They’re. They’re doing extraordinarily well.

John Bianchi [00:30:31]:
Yeah. I mean, there’s clearly money to be made in this market.

Speaker D [00:30:33]:
Right.

John Bianchi [00:30:34]:
So just about finding the right property at the right price to ensure that you’re not overpaying and you’re doing all the things that you need to do to make sure that that property is going to be able to beat the competition and be able to cash flow. So I agree with everything you’re saying. There’s just all. There’s a whack love of these little things that could be done.

Avery Carl [00:30:49]:
All right, so there you have it. So, guys, if you are ready to buy or maybe start looking with Kathy and Broken Bow. You can email us at agents the shorttermshop.com and we’ll get you connected with her. Or if you want to just ask some questions, learn more about it, and network with other short term rental investors, you can join our public Facebook group. It’s the same title as my book right behind me, Short Term Rental, Long Term Wealth. Join that on Facebook and come hang out with us. Or we have a live Zoom call every Thursday where we answer any of you guys questions on short term rental investing and you can sign up for that@strquestions.com catch you on the next one.