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Why Branson Condos Are Still One of the Best STR Entry Points · Short Term Shopping

• 0:02
  Speaker A: Welcome to Short Term Shopping where we explore homes for sale in the best vacation markets in America. Some homes we do like, some homes we don't like. Brought to you by the Short Term Shop. It's Short Term Shopping. It's Branson Moe. And we're doing the Branson Real Estate podcast to talk about what's doing in the world of overnight rentals and the Midwest premier vacation market. What's going on, David?
• 0:43
  Speaker B: A whole lot
• 0:46
  Speaker A: coordination, cold weather, which I know you have a lot of in Missouri.
• 0:51
  Speaker B: We do. We've been spoiled with 70s for December and January and now we got snow coming. So we're finally going to get a taste of it.
• 0:59
  Speaker A: Yeah, you deserve it at this point. But. Well, what's going on out there in the world of, of real estate? Can I get a deal? What does it take to get a deal or how long are things sitting on market, all that kind of stuff?
• 1:16
  Speaker B: Yeah, absolutely. Deals are definitely out there. You gotta look for them. I mean there's a lot of properties have been on the market for 90 plus days. Average days on market. Right now I would. Sitting right around that 70 to 80 depending on the, depending on the size of the property. Obviously if it's priced right, if it's been updated, it looks good, it goes quick. I've seen a lot of them been beat out on a couple of them and you know, been on the market under 30 days. But there, there's plenty of deals to be had, you know, interest rates down a little bit. So things are starting to, starting to pick up for sure.
• 1:55
  Speaker A: And, and you own, you own there, right? What's, what is your property? What is it?
• 2:01
  Speaker B: I do, I have. Well, everything in Branch is a condo. So I have your traditional condo. It's a 3:2, just under 1200 square foot and it's, it's doing well. I did just, just shy of 60, 000 gross for year one.
• 2:19
  Speaker A: And what did it cost?
• 2:21
  Speaker B: I paid. They're going right now for 2, 225. 5 is what they're listed at. Brand new, unfinished.
• 2:29
  Speaker A: I'm happy with that deal. That sounds like a pretty good deal.
• 2:32
  Speaker B: Absolutely, absolutely. And there's still some, there's still some available.
• 2:36
  Speaker A: When did you put it in service?
• 2:38
  Speaker B: I put it in service the last week of February 25th.
• 2:44
  Speaker A: So yeah, you did get a whole year out of it.
• 2:47
  Speaker B: A whole season. As far as the seasons go.
• 2:50
  Speaker A: Yeah. Okay. And why do you think they're still available? I mean those are pretty good numbers. Is it just that people, you know, Branson's not like first on their mind or are they?
• 3:02
  Speaker B: I, I think so. I mean, there's, there's a handful of different ones being built. I mean, honestly, they're. If I was going to buy another one, it'd be on one of my top fives, depending on what I'm looking to spend, for sure. I mean, it's, you know, there's some other units that might have a few more amenities. You're paying a higher coa fee, HOA fee. You know, maybe they got a little bit more square footage so you can get a little bit more, you know, beds, you know, heads and beds, as far as the occupancy goes, as far as the numbers. But I mean, it's, you know, it fits, it fits the avatar that's coming here. It's in a great location and they're, they're new.
• 3:46
  Speaker A: Is new the way to go or it just so happens that they happen to be new and they're, you know, I, I think.
• 3:56
  Speaker B: Well, there's, there's a couple of different classes out there. You have, you have some that have, you know, that are ordered, that need to be updated. They still have carpet in them. There's some older ones that have been updated, you know, that are furnished. Depending on how they're furnished and they want, you know, fairly high dollar for them. You know, it just, just comes down to the, the individual buying it. You know, do they have the, the money and the time to put in to getting it furnished or if they want to buy something that's turnkey, which we have a lot of those as well.
• 4:29
  Speaker A: It's funny you say carpet because, I mean, it's pretty common to see carpet in the Midwest, is it not?
• 4:35
  Speaker B: It, it is. But I mean, obviously as, as a short term rental, I wouldn't want carpet in my unit.
• 4:42
  Speaker A: Yeah.
• 4:42
  Speaker B: I don't even have rugs.
• 4:44
  Speaker A: Yeah, I hear you. It gets dirty quick. And of course, that is the goal. That is, he was mentioned short term rental. The goal is to provide these folks with a right place to have their vacation. That's the whole point of the whole thing. And I don't want to overlook that. But what do you got for sale right now? You can show me a house or two that's available and like, talk me through, you know, good stuff, bad stuff. Maybe some of them aren't any good. Whatever you got.
• 5:07
  Speaker B: Yeah, yeah, 100%. All right, so hold on a second.
• 5:11
  Speaker A: Before we get into this, explain to me what the deal is with the hoas and the, and the pods and the condos. And you know, the whole thing.
• 5:21
  Speaker B: Yeah. So every, everything for the most part, 99, 95% of Branson is a condo. Whether it's a what we call a traditional condo, which is going to be your multiple units in a single building, or if it's a detached condo, more like a pud, where it's. It looks like a single family. It is a single family, but it's in a community. They're cookie cutter. They have shared amenities. They don't have a garage. Typically those are what we refer to as the detached condos. Those are something that's a little bit newer to the scene. They've been around for a few years now. But every. Everything's in Branson's a condo. It's got a COA or hoa, however you want to look at it, that's going to take care of typically the building insurance, the exterior, the maintenance. Some of them include different utilities. Just depends on which community you're in.
• 6:16
  Speaker A: Okay, great. And right here we've got a. I'm not super familiar with your mls. How big is this thing? Where is it?
• 6:24
  Speaker B: This, this one right here. And I can pull up the pictures as well. This is a, this is in the Roark community. So these are, they've all just recently been redone in the last couple years. This is actually a one one. I believe there's two of them out there that are similar. I believe it's actually a walk in unit. So you actually don't have stairs. That's a big, big bonus when you're talking condos. But what's nice with this community here and what draws my attention to it is it's unlike. It's one of the few that's within walking distance. So I mean, our, our three kind of big attractions, I would say with Branson is you have the Landing, which is right across the street from the convention center, and historic Branson, you have the Strip and then you have Silver Dollar City. So this one right here is within walking distance of both the Landing and the historic district area of Branson. It also has the amenities, you know, indoor pool, outdoor pool, fitness center, even has a boat ramp. It's right there. It's actually on the water. And with this coa for this one, all of the utilities are actually included in there. So I think this one's. Yeah, 2, 270amonth gets you all the amenities. Trash, water, sewer and electric are all included. The only thing you're paying is cable.
• 7:58
  Speaker A: All right, let's take a look at it. It's the Right hand side or one of the two sides?
• 8:02
  Speaker B: It's one of the two sides there, there's, there's some, this, there's some up top here. These are one bedroom. I think the ones below it are two bedrooms because actually I've actually looked in person at the two bedrooms. Now when you go to a two bedroom, your, your fees are going to jump up. I think they're around five something. So by going with the one bedroom, you're getting half the, half the fees.
• 8:27
  Speaker A: Well, this is cute. It's been redone.
• 8:29
  Speaker B: Yep. Every, everything's all, I said all the community. I mean it's got new, new cabinets, countertop flooring. Within the last couple years, all these units did okay.
• 8:42
  Speaker A: Any idea what something like this would rent for? Just not gonna hold you. Just a random number depending on the season.
• 8:49
  Speaker B: I mean peak season, you probably look in around that 150, maybe 200. You know, if you really push it, you know, off, you know, lower seasons, you might be, you know, 75 bucks, 100 bucks.
• 9:06
  Speaker A: So we like this deal.
• 9:09
  Speaker B: I, I, it's at 160. I mean I personally, obviously if I could get it cheaper, I'd go cheaper. But you know, I've, I ran the numbers personally. It's, you know, if somebody's looking to, to get their first one or if they just want to get one that's, you know, I mean under 200,000, I mean, not too much to choose from. I don't think any other market can, can give you that.
• 9:35
  Speaker A: Okay, let's take it. And these are not just to be, just to be clear here, these are not your listings. These are just things that you, no,
• 9:39
  Speaker B: no, these aren't my listings. These are honestly all four of these I have up here, right here. I would, you know, if I was in the market and had the money, I would, I'd be writing offers.
• 9:50
  Speaker A: I hear you. Okay, so these are something that you decided were pretty good deals. Let's go there. Look at that. North vineyards.
• 9:57
  Speaker B: Okay, so this, this is actually where I own at. All right. So this, if you look at the map here you have, this is phase one, phase two. My unit's right here in phase two. There's a handful of these are still available. These, the back rows here face the wall. So they call them a wall wall view. Wall facing, rock wall. The ones that are out facing have an actual view of. You can see the Ferris wheel at night, a little bit of the strip. They'll charge a couple dollars, you know, a little bit more for those typically Premium. But these are all, they're all, all the same. They're all three, two on the lower. Lower level or lower two levels, depending on which side of the street you're on. And then the upper levels are four threes. So the one I got pulled up is a three two. Now these are, these are furniture. These aren't furnished. These are brand new, unfurnished. They just have the staged for pictures. So these are going for 2, 225. 5 as well. What they got them for right now.
• 11:05
  Speaker A: And yours did like you said, about 60.
• 11:08
  Speaker B: I did, I did, yeah. Just under 60.
• 11:15
  Speaker A: I, I don't see why. This is not a deal. You know what I mean? Like, this makes perfect sense to me.
• 11:20
  Speaker B: Yeah, I mean it's. I think I just was running some of my numbers. I think I put maybe. I think it was right around 25,000 to furnish it. So all in about 250.
• 11:31
  Speaker A: 260 comes not furnished at all.
• 11:36
  Speaker B: No. Yeah, they're. Now there, there are some people selling, which I would love to see some of them sell so I can refinance for, for comps wise. But yeah, there's, there's some of them for sale. In my opinion, they're a little high. Most of them are around that 310 to 325 is what a lot of them are asking. You know, they're anywhere from a year to two years of service furnished. But like I said, obviously if, if you put in the work, you can get a brand new one, furnish it the way you want it for, you know, 20 to 30,000 less than what they're trying to sell their, their used stuff for.
• 12:20
  Speaker A: All right, well, I make. Has a pool.
• 12:24
  Speaker B: It does. Hasn't the HOA covers the trash. Got a gazebo. It's actually got two pools. So it has a pool in each one of the phases. So, you know, it keeps it from getting, I guess, too crowded maybe, but I'm sure they're crowded during peak season. But.
• 12:39
  Speaker A: And how, and how much is my HOA again on this?
• 12:42
  Speaker B: HOA on this one's 300. Yes. That's what includes your, you know, the, any outside maintenance as well as the trash.
• 12:58
  Speaker A: Fantastic. Okay, and let's go. I might come back to this, but let's go to that next one there. The.
• 13:03
  Speaker B: These are, these are coming soon to be built. I think they only have 17 lots available. Several of them have already already been sold. Let's see what this one.
• 13:15
  Speaker A: What the hell is that? It looks like the Jetsons, right?
• 13:19
  Speaker B: They got A couple different, different models. They're doing, you know, this. This is something that's. Doesn't really exist right now in Branson. So, you know, if you want to, you know, obviously they have the. The larger detached condos that look like a typical single family home. Most of them are kind of positioned towards the lake, so they do have a view at least. And then you have your traditional condo. So this, this would kind of fall into that detached condo still. But you're getting, you know, it's a high rise in a way, so you're getting that view, you know, hot tub space, kind of, you know, elevated patio. But something, you know, something unique, something different that's not. Not available right now as far as this market's concerned.
• 14:17
  Speaker A: It's cool. It's definitely different. And it's pricey. Right? Like, this is almost twice as much money as the one before. And they're about the same size, aren't they?
• 14:26
  Speaker B: Right, Exactly. Yeah. You're looking at, yeah, 450. They got some other models, I think, that might, you know, they're a little bit higher. Um, you know, so it's hard, hard to say what they're going to do. You know, if you want to go with that. Safe bet. You know, clean, comfortable, you know, keep that occupancy, you know, keep your price per night a little bit lower. Keep the occupancy up. That vintage is hard to beat.
• 14:54
  Speaker A: I got to go up two flights of exterior staircase to get to the unit, right?
• 14:58
  Speaker B: Yep, 100%.
• 15:00
  Speaker A: That's kind of weird. Some. Somebody that loves Airbnb designed this thing, which is. Nothing wrong with that, but it's weird. But something tells me he probably could crush it pretty good, though.
• 15:16
  Speaker B: Yeah, I think there. I think there'll be a little bit of a hit, you know, it's hard to say, you know, with them being. It's a. It's a different. Different take on everything, how they'll actually do.
• 15:25
  Speaker A: And what's. What's number four there? Let's take that. Take a look at that one for.
• 15:29
  Speaker B: Here's. Here's what we have on our detach. So is a. Believe this one's a four. Yeah, this is a four bed, four bath. We are looking at just under 2300 square feet. Listing price at 725. So these are. See what. I think these are just a couple years old. Yeah, built in 23. So there's a couple of these for sale in this community. This is the Summer Bay community. It's over towards the lake. Actually. Only a Few minutes from where the vineyards are located at. But they got, you know, some great amenities. They got the lake view as well. Not all of them do. Some of them do. But they got the indoor pool, outdoor pool, pickleball is all part of your. Your hoa. This particular one's on a corner. So this is kind of what your. Your detached condos are going to look like. You know, they're all. All very similar, you know, stacked on top of each other. No garages,
• 16:30
  Speaker A: but it's got a view.
• 16:32
  Speaker B: It does have a view. Not now. Not every one of them there, you know, at that community will have a view. But this one does.
• 16:42
  Speaker A: What's something like this do?
• 16:44
  Speaker B: This. I've actually talked to somebody and I don't know if he had a view or what. I have to go back and look at his listings, but I know somebody that did. I think he did a little over 120. Gross.
• 16:59
  Speaker A: This is a nice looking house. Go back one. The one more. One more. Yeah. The flooring's going the wrong direction. I want. I want the flooring to go towards the view. In my brain I'm like, why? Why is it. You know what I mean? Like in my brain it's like I'm getting a. Like this. But it's nice flooring. It's well done. Staggered. Yeah, right there. See what I'm saying?
• 17:24
  Speaker B: Yeah. Yep.
• 17:26
  Speaker A: It's crosstown traffic, but I get it. I would assume that the square footage goes that direction and. Or the front door.
• 17:35
  Speaker B: The front door. Yep. It does go that way. I've looked at a few of these in person.
• 17:42
  Speaker A: This is really nice. Yeah, this is a nice just, you know, rental. It's got the vinyl grates, surround shower. No. Or sets a. Yeah. It's a shower, not a tub. And it's got the shower curtain. No glass. This thing's. Because what I'm looking at when I'm flipping through stuff like this is what's it going to take to manage this thing? You know, like these people on vacation, are they gonna. Are they gonna beat this thing up and cause me problems or is it. Is it easy to manage? And I'd say this thing's expensive. Extremely easy to manage.
• 18:14
  Speaker B: Yep.
• 18:15
  Speaker A: Outdoor fireplace. This is cool.
• 18:17
  Speaker B: Yeah, there's. They have some different sizes. Some of them have a multiple deck levels.
• 18:23
  Speaker A: Whoa, whoa, whoa. Go back to. What's that staircase back to?
• 18:28
  Speaker B: That's towards. That's going out there. That's probably either. That might be going down to the
• 18:32
  Speaker A: water and that's an HOA staircase. I Would guess.
• 18:36
  Speaker B: Right. Yeah. You're not, you're not responsible for anything. You know, the exterior maintenance I believe is all actually maybe going down to this lower level.
• 18:48
  Speaker A: This is really cool. Pickleball.
• 18:55
  Speaker B: So I looked at, I looked at these two units right here. I think they were a little bit larger. I think the boat they both, they both sold and no view. Those, they do have a view knots because the lake, this is part of Indian Point. So the lake, the lake's over here to the left. This is actually one of the cuts that go back in a ways. So these, these up here would have a view as well. Here's some of the larger ones. You know, you got multi level decks on them. Some of them do have hot tubs.
• 19:37
  Speaker A: 20, 21, this thing would have sold like hotcakes.
• 19:40
  Speaker B: Yep.
• 19:42
  Speaker A: And, and where are the buyers now? You know, it's like, it's crazy. But sellers are tough right now too. Are you seeing that like sell where I'm at? Sellers are tough. I just made.
• 19:53
  Speaker B: Yeah, there's, there's a lot of.
• 19:57
  Speaker A: We got a contract on a house and they made it contingent on them finding. They didn't mention an exchange. They just said they were looking for a, you know, bigger or something bigger I think. And they gave us like a contract for a week with a contingency on them finding another, getting an offer, an accepted offer on the other house. And they didn't get the accepted offer and they told us to pound sand and then they told us they were going to take it off the market and not sell it and it's still for sale. And I'm just like, hello. I mean my offer was fantastic. It was pretty close to what they were looking for and it was an easy close. And they just, you know, they don't care. It's almost like they don't care. And I'm seeing that quite a bit. You gotta. In other words, what I'm seeing is that you gotta dig and make, you know, several offers and phone calls and connections to find the guy that's actually really ready to sell. Because a lot of folks are just kind of hanging. It seems like they're just hanging on for. To get the price they want from the COVID era or something like that or is that what you're saying? Right?
• 21:01
  Speaker B: Yeah, they are price high. Some of them are. Some of them are down a little bit. I mean I've, I've looked at a few of them that have, you know, dropped several hundred thousand. You know, some of the. We got a few that, that Break the million dollar mark or up there in that 800, 900,000, some of the eight, nine 12 bedroom ones. And I've seen a few of them that have, you know, dropped quite a bit. I've seen a few of them. I mean, the, the asking price is below what they paid for it, you know, when they bought it brand new on furnished two years ago. So, I mean, there's a few, few decent deals out there. You just have to, you have to dig, make some offers and see, see what they say.
• 21:40
  Speaker A: I hear you. All right, so I mean, what's the dilemma? Uh, why, why are people not, not buying? You know what I mean?
• 21:52
  Speaker B: That's, you know, like I said, the only, the only thing that's keep me from buying is I don't have the down payment.
• 21:57
  Speaker A: Well, well, there's that. Yeah, that's, you know, that's, that's.
• 22:00
  Speaker B: But I mean, yeah, it's, I mean, a lot of people want to see numbers. I mean, that's why, you know, I think a lot of people, you know, some of the ones are for sale. Like I said, there's several of them in the vineyards community that, you know, they're selling because they, they just didn't do what they thought they would do. I mean, I've seen people that, they're doing 20,000, 30,000 gross. You know, I've seen some of these, you know, four, five, six bedroom ones that are doing 20, 30, 40,000 gross. I mean, I don't, I don't know what the story was behind it, whether they stuck with a property manager or maybe they just, you know, they kind of do it a little bit and just use it for their own personal use, but definitely not, definitely not maximizing what they could be doing out of it for sure.
• 22:51
  Speaker A: All right, what's the name of the game right now? Make a bunch of offers and find the guy that's really actually ready to sell.
• 23:01
  Speaker B: 100. Yeah, I mean, they've all, I mean, there's a few of them that popped up not so much recently, but they've all, they've all been on the market, you know, 60, 90 days plus. A lot of them have the ones, you know, the ones that are still out there. You go into the history, they've been on the market for a year, some of them, but yeah, you know, go through them, find the ones that, you know, make sense and make a bunch of offers and find the one that's willing to say yes.
• 23:30
  Speaker A: Do you find that people are turned off by the condo hoa stuff and Is it difficult to explain it to them or.
• 23:39
  Speaker B: I mean, some people, yes. You know, some people, you know, they don't, you know, I, I myself not a big fan of hoas for my personal home. Depending on what they do, I've had bad ones and good ones at the same time. If they keep the ripraff, you know, keep my property value up high, I'm okay with it. But I mean I'm, I'm personally a fan of them when it comes to the short term rental side of things. You know, it makes. You don't have to worry about hiring grass guys. You don't have to worry about who's going to take your trash cans out for you. You don't have to worry about putting salt down, shoveling snow. You know, you don't have to make any of those phone calls. You pay your yearly dues or monthly dues. However they have it set up and it's, it's taken care of. I mean if it's an older, older complex, you know, there's, there's a chance there might be an assessment coming up. I mean that's no different than setting up a capex account so that you can replace the siding or replace the roof when it needs to be done. They're just, they're taking that stuff off your plate for you so you can focus on bigger things.
• 24:41
  Speaker A: Okay. I mean, I'm loving it. I, I don't understand what the hiccup is here as far as like the, the market, I guess. You know, it's, it's, it's crazy. The interest rates are down too, right? What are you seeing out there for interest?
• 24:55
  Speaker B: Yeah, it's interest rates. I've talked to, talked to several lenders. You're looking right at about six and a half to even. I've had a couple that were under six. You know, if you do maybe a point or two.
• 25:14
  Speaker A: Yeah, I've seen a couple of couple under six myself. All right, well listen, if I'm a buyer and I'm looking at Branson, sell me on it, Sell me on it in two minutes, go.
• 25:25
  Speaker B: I mean it's, where else can you go for this price range? I mean to get a, a five bedroom, four bedroom for, you know, under 800,000 turnkey. You know, I don't think there's any other market where you can get in the market for under 300,000. And we, we have all that. You know, it's a 10 month a year market. I mean nothing, nothing to not like plenty of deals.
• 25:51
  Speaker A: All right, and how do I get a hold of you?
• 25:55
  Speaker B: You can David, at the short term shops, my email or give me A call at 417-924-0117. Call or text killer. Happy to help you.
• 26:09
  Speaker A: Appreciate it.
• 26:09
  Speaker B: Absolutely.
• 26:10
  Speaker A: The Branson Real Estate Show. And we'll catch you next time, brother. Thank you.