Should I sell or hodl?

I’m highly considering holding every unit on my project.

Last month, I posted about how someone could purchase one of my homes and Airbnb the home for a profit. 

I received significant resistance to both the potential rental rate and occupancy numbers. I became curious and decided to do some more digging. As I've researched the idea, I’ve become more convinced I was correct in my original expectations. 

I’ve gained enough confidence that I’ve begun to wonder why I’m selling any units and instead just holding them to rent together. 

Here is my idea in a nutshell. 

I have a world-class surf break on the beach next to my property, but there isn’t a place to stay there that I would consider higher-end. I have an opportunity to provide an ideal spot for someone looking to take a week-long surf trip with their family. 

I build the subdivision as I already have planned. 

I create shared amenities inside, like 

• pickleball courts

• Gym

• sauna 

• yoga studio

• kids playground

I also build a unit mix within the 42 homes with a wide range of options. The smallest starting at 3 beds, 3 baths, and the largest, potentially 8 beds, 8 baths. Each home would come with an individual private pool area. 

I can offer a mix of services, including

• Airport pick up

• Personal Concierge

• Daily Cleaning

• Chef & grocery pickup

• Car Rental 

• Surf Lessons

• Surf Rental

• Recreational Vehicle Rental

The idea would be to take full advantage of the surf break that is constantly available all year round. 

Here is what the numbers could potentially look like. 

This would be at an average of $700 a night, 60% occupancy, and 40% expense ratio.

Total Construction Cost 25,000,000

Annual Gross Rent 6,300,000

Expenses 2,500,000

NOI 3,800,000

This would be before any additional income from the add-ons mentioned above. 

I’ve been inspired by many on X who are doing experiential hospitality, and I think this model is possible here. 

Why I moved my business from Utah to Costa Rica

Reason #6 Health

I want to start by saying that I am no health expert, but what has become increasingly apparent is that our health is deteriorating in the United States. 

I believe that corporations have conspired to keep us in the dark. It is easier to make money on things that have a longer shelf life and sweetened with sugars. 

The food infrastructure and habits built in this country have made it very difficult to stay healthy. As I’ve traveled more frequently, it’s become apparent that I can eat more outside the US while maintaining more energy and less weight.

I believe this will be a driving influence in pushing more families to consider leaving the US, creating a tailwind for home building. Costa Rica has the marketing benefit of a blue zone within the country, attracting those who are specifically looking for healthier places to live.

I’m simply not an expert in this subject, but here is a good thread from someone who is breaking one example of how this has become entrenched in our society. 

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