STR's are HOT

Happy Tuesday! This is The Real Deal. The email that tells you the latest that's going on with Real Estate in plain jane english.

Email Read Time: 3 Minutes & 15 Seconds

In Today's Email:

  • 🧠 10 Terms Every Investor Must Know
  • 5️⃣ What Interest Rates Are We Underwriting Deals With?
  • 🔥 STR's are HOT


10 Terms Every Investor Must Know

Real Estate lingo is fun.

It makes you feel like you're a part of the gang.

So speaking in code is a must to be a successful Real Estate investor...

Well, not actually, but we like to think that it does.

Here are our top 10 favorite terms we use:

EO: Escrow Officer

DD: Due Diligence

Contingency: Ability to back out of a contract during key moments and still maintaining all of your EMD

EMD: Earnest Money Deposit

Cap Rate: Measures the profitability of a deal without financing taken into account

M2M: Month-to-Month

Escalation Clause: Automatically increases your purchase price by a certain amount above competing offers until the offer reaches the maximum price you are willing to pay for the home

EMD Going Hard: Your Earnest Money Deposit becomes non-refundable after a certain point

DSCR: Debt Service Coverage Ratio

POF: Proof of Funds

What Interest Rates Are We Underwriting Deals With?

Interest rates have been on the move lately.

About every month or so, we connect with our preferred lenders on the residential and commercial side to get the latest on where interest rates are at so we know what to underwrite our deals with.

Here's what we took away from the conversation:

Right now, we should be underwriting our residential loans that are non-owner-occupied investment properties at 5.625%.

For our commercial deals, we should be underwriting them at 5.0%.

STR's are HOT

A recent survey by CoStar's analytics team revealed that over the past two years there's been a surge in consumer demand for Short Term Rentals (STR) across the United States.

Here's what CoStar had to say, "Results from this current survey cement the changes observed in accommodation preference due to the pandemic over the past two years. As has been the case throughout the pandemic, travelers are more interested in self-contained forms of accommodation. In STR’s latest survey, net interest for short-term rentals stood at 16%, which was similar to previous research conducted during the pandemic."

The best part about this is that not only are STR's skyrocketing with demand but also the demand for other accommodations are lessening.

Take a look down below to see the chart for yourself...

If you have the time to read the full report, feel free to check it out here.

Learn More About Team Kekoa

We're your partner for sourcing, analyzing, and negotiating long/short term rentals. Go to to get started today.