[00:00:05] Speaker A: Welcome to the Short Term Show.
[00:00:08] Speaker B: The show about short term rentals and long term wealth with real property owners hosting real properties who are crushing it in the vacation and short term rental space.
[00:00:19] Speaker A: And here's your host, Avery Carle.
[00:00:30] Speaker C: Hey y'. All. Welcome back to another episode of the Short Term Show. I have recently redone my office and I'm like halfway through that, so sorry, I'm in a weird place I think sounds okay, but I don't have my good camera and things like that. Anyway, today we have a cool guest, Wade Hall. He is one of our agents here at the Short Term Shop in the Smoky Mountains. He was actually with us in Orlando for several years, but now he's been with us in the Smokies for a few years and he is really, really good. He was, we were on a team call last week and he was showing us how he uses the Price Labs market dashboards, which for those of you who don't know what the market dashboards function of Price Labs is, it's the data, the income data section. So it's a separate section. You have to pay. I think they're 37 bucks per month per market.
So it's kind of an alternative to an air DNA or a rabu. I really, really like it. It's one of my favorite data sites to use. I mean, I use all of them. But anyway, Wade's going to talk about how he uses it in his day to day. How's it going, Wade?
[00:01:37] Speaker B: Going good, yeah. Excited to talk about Price Labs.
It is such a phenomenal stinking tool to understand. It's complex too, but it is absolutely game changer if you're wanting to understand a bunch of niche details about a market and getting familiar with them.
[00:01:56] Speaker C: Cool. So let's, let's talk about what they show a little bit. So I think we'll just, I don't want it to make it a let's compare this to air DNA conversation, but since that's kind of the big brand name that most people are going to be familiar with already, let's talk about how it's a little bit different than that and then we'll go into the nuts and bolts of how you use it as an investor.
[00:02:16] Speaker B: Okay. Yeah. So the core difference in my opinion is probably how much data it provides. Where air DNA I think is. It's a little bit more of an entry level software where you can get very high level information.
Price Labs from the start, actually only for about 10 bucks, by the way. It's cheaper than you might think. You can basically go in, carve out a region of wherever it is. You're trying to analyze and, and search between a thousand to five thousand listings to see what their real rental history has been in terms of income. And it gives you more information in terms of whether or not homes have pools or not. It'll separate that out for you. It'll give you their, in individual cleaning fees, their individual occupancy rates going back the last 12 months. It just gives you more niche data on a granular level, which I tend to like. It can kind of lead to a little bit of an analysis paralysis in the event that you're just, you know, completely getting in the weeds.
This tool though, is more for kind of establishing patterns though, for a lot of data at once. That's how it's excellent.
[00:03:34] Speaker C: Okay, so you're not going in there and treating this data like the Bible, which you shouldn't do that with any data, guys. No, data is the, the right and only piece or data point. But you're using it to identify patterns. And so you're saying you can go in and like use a draw tool and kind of carve out the area or the neighborhood that you want to look at.
[00:03:58] Speaker B: Yep, exactly. And so if you want to get around a specific address, you can do that too. But say in our market in, you know, smokies, you're just looking at Pigeon Forge or you're just looking at Gatlinburg, or maybe you're not wanting to be on the outskirts of the city limits and that kind of stuff. You can intentionally carve out an area and it will report to you all the listings up to 1,000 or up to a 5,000, depending on how much you pay. It modifies how much data it'll give you off of your subscription starting at 999.
But I think I went in for Pigeon Forge the other day and I think it's every 5,000 listings it goes up by 10 bucks.
So I went in for Pigeon Forge, I think it was like 29.99 to see all of Pigeon Forge within like a 8 mile region. It was fantastic. And the reason I did that is because I was going in to, to see, you know, a pattern between R8 occupancy rates and how many guests are inside a home. So I was looking at three bedroom properties and I was actually changing on its filters homes that allow for 10 people versus 12 people. And I was trying to see if that actually led to a significant increase in revenue. And that allowed me to establish a pattern Just between that one data set, it was fantastic and you can get a lot more granular. You can even filter it off, you know, a cleaning fee of 100 bucks versus 150 bucks. And it helps you whether or not on that, you know, pattern level if those minor tweaks actually help your listing to a significant degree.
[00:05:34] Speaker A: We have live one on one coaching sessions available with our wonderful top notch coaches at Short Term Shop plus and we would love to help you in your vacation rental journey.
The mission remains constant to provide amazing homes so that our guests can create awesome memories with their families.
If you need help to set up your systems and processes, how to communicate with guests, how to improve your systems, how to find and hire housekeepers and all of the above, you are looking for short term shop plus you can find
[email protected] and the best part is the price is right, reasonably priced and if you are a short term Shop client, please use the code client at checkout for an even better deal on SDS plus.com I love that because a.
[00:06:37] Speaker C: Lot of times you how many people a property sleeps, it totally makes a difference if you're, if you've got a three bedroom that sleeps six people or a three bedroom that sleeps 10 people. And maybe you're like me and I don't want to sleep 10 people in my three beds but it's, I just like that you have the ability to kind of drill down. Like I know when I'm looking at a new market I only want to see properties that have a certain amount of five star reviews. So I don't want to see anything that's brand new that hasn't been listed for longer than a year. I don't want to see anything that doesn't have like super host level reviews even though super host doesn't really matter.
But I want to see somebody who's very established and been around for a long time.
So then you can see okay, this is a, an established listing. This is kind of what you're looking at once you get up and running. And it's not like a fluke as of the last year or what have you. So I really like to filter that way by number of five stars.
Let's talk about how you use it in your day to day as an investor and as an agent.
[00:07:42] Speaker B: Yeah. So on a day to day for me I usually use price labs to try and find out what type of home I'm going to buy from. A 1 to 2, 3 to 4 or north of that I'm more Just looking to see. All right, price for purchase versus revenue averages.
Where in air DNA, you might just be trying to prove a point where like, oh, can this. Too bad, get to 75k.
Awesome. Okay, that's great. And Price labs, you can actually kind of say, all right, well, two beds going to be probably around 450 to 550 here versus a six bed that's going to be, you know, north of a million.
Do I have a better opportunity of buying that two bed or a better opportunity of buying that six bed? And which one kind of gives me more revenue for output for the level of risks that I'm putting in for a home, that might be a pretty high level.
Usually you're kind of going to get to that point whenever you have several homes behind you and you know what it is you're looking for on an acquisition level.
But I use it specifically to kind of, hey, am I going to be targeting this type of asset of one to twos or north of. And kind of just shifting from there whether or not I need to adjust my purchase price, whether or not I need to adjust maybe homes in a different area. So instead of targeting Pigeon Forge, maybe I'll go look at Gatlinburg and compare twos in Gatlinburg versus Twos and Pigeon Forge.
So I, I use it to kind of compare areas between one another.
[00:09:16] Speaker C: And what I like too is that you can see the cleaning fees.
[00:09:20] Speaker B: Yeah. So the cleaning fee is another great tool in there where if you don't have any idea what to price your home at for a cleaning fee, you can go in and actually see ratios of all your competitors of a thousand listings. It'll tell you, you know, 20% of them have a cleaning fee between 100 and 125. 40% of them have a cleaning fee of 125 to 150. And then if you have a random cleaner that tells you it's going to cost you 210 bucks, you know, you're going to have one of the highest cleaning fees on the block. You're probably not going to be as desirable, maybe some of your other homes that are in the area there.
And earlier you actually mentioned occupancy rates as well as homes with reviews. One of the excellent things about price labs is you can actually filter for that. So, so say you only want to see homes between 4.6 and 4.8 stars on Airbnb, you can actually only see homes between 4.6 and 4.8, then you can save it and then Compare it to homes from 4.8 to 5. And so if you ever wanted to see how significantly your reviews affect your revenue, that's an excellent thing that Price Labs can also do as well.
[00:10:36] Speaker C: Well, I think as a buyer that is really helpful because if you're buying a property where the rental is not good, or maybe you're new and you don't know enough to know that the rental history on a property isn't good, and you just say, well, you know, I like this property, it looks good, but the numbers don't make sense. You can then go into Price Labs and look at the competitors of this property. You know, you can use the little draw tool and see, okay, well there's another property in the neighborhood that's very, very similar, maybe even the same. If it's in like a development, all built by the same developer and it's making a lot more or a lot less. You know, maybe, maybe you're looking at one that has really great rental history. The opposite. And you can see, okay, well this property is the same as the one that I'm looking at. The rental history on this one is terrible. The rental history on the identical one down the street is really, really good. Let's see what they're doing. And if it's all stuff you can replicate like just managing it well, then you're in a good position to, on the property that has bad rental history to go make a really low offer and negotiate. Because if that, if that property that's identical, that hits the market and it's got good rental history, they're not going to negotiate with you. That seller, most likely the typically sellers, the better rental history they have, the less negotiable they're going to be. Even though the house is not that the income does not determine the value of the house anyway. I just, I think that's a really cool feature being able to look at, okay, well, here's this rental history that isn't that great. I think these numbers don't work. But then you can go in and look and see properties that are similar. But filter by number of 5 star reviews and say, oh well, you know what, if that property can do this and it's the same as mine, well, I can do that also. So I like, I like that a lot. So people can compare.
[00:12:23] Speaker B: Yep. And one thing too is on Price Labs, it doesn't just give you that one home or two home in the area, it pulls for you a thousand homes. So if you wanted to see 30 examples of properties that are Performing really well and it'll give you a ton of them. Of course, you know, change your filters around. Maybe you're only looking at maybe, I don't know, two or 300 houses, but you can see 10 homes in a row and compare all 10 of them to one another and see what these 10 have in common versus the bad ones that are way at the bottom. And, and you can basically from there to say, all right, avoid what all these guys are doing. I'm model these 10 homes because they've got the thing going that's actually, you know, clicking in the market.
So it's, it's such a fantastic tool especially if you're kind of looking for a little bit more intricate data at a high level.
[00:13:21] Speaker A: Are you a real estate agent that wants to work in a fun family environment?
Then join us at the short term shop if you are interested in moving to the beach to sell houses, we can help. Theshortermshop.com careers we are hiring in the best vacation markets in America.
If you are a rockstar agent or want to become one, please contact us.
The shorttermshop.com careers are you worried about your market being saturated?
Too much competition?
Well, join us at short term Shop plus and we can teach you to be the best in your area.
STS Plus.com to sign up for on demand online courses, one on one live coaching, weekly group calls, everything you need to know about being the best in your field. In the world of vacation rental and short term rental we say saturation smatteration.
Stsplus.com yeah, another thing that I think.
[00:14:44] Speaker C: This really helps with is so like here at the beach this can happen a lot. So if you're looking at one of the other tools it just kind of goes on averages and the area is pre selected for you and you can't change it at the beach. This can make a huge difference because a property that's on the sand, that's Gulf front and a property that's even, you know, a few hundred yards behind it, not even a quarter of a mile, they, the income on those is going to be wildly different because one is Gulf front and one is not.
And in the tools where it just uses averages, I've, I've seen people sometimes they'll come to us and say hey, I think I found this really good deal. It's 1 million and it's, it should do, you know, 350,000 a year. I'm like wait a minute, let me see that. And when they showed us the data, the data was pulling a Lot of this house was in like a residential neighborhood that's meant to be cheaper down here. But it was pulling all the data from these.
There's still the same number of bedrooms. They're just huge, nice, crazy houses. In Seaside is the name of the, the little community it was pulling from. So it's pulling the income from the Seaside homes that do make 300 to 500,000. I regularly see 500,000 incomes in Seaside. I mean it's going to cost you 10 million to get one. But it's pulling data from these properties that are not the same as the property this guy's looking at. Same bedroom count, but some of these are Gulf Front even though they're only a few, few hundred yards away from each other. So that's not going to be the same income. And we're able to stop him from making a bad decision because this million dollar house is not going to do what these big, huge same bedroom count, Gulf Front, Seaside homes are doing. And I think that this tool is really helpful for that because you can carve out with that draw tool rather than just using averages and pre selected areas.
[00:16:38] Speaker B: Yeah, it's definitely a big sanity check. And you're not always, you know, you're not looking for. This is what it's going to be, this is what performance is going to be. Because it really depends on the host. It depends on a ton of other variables. You know, if the home is dated versus modern, it's location.
For, for perfect example, you know, I'm a Disney agent so I'll refer to Disney too here.
In the event that you know, you're in a neighborhood that has a resort versus you know, neighborhoods that have nothing, you can carve all that out and say all right, well now I'm really looking and like kind areas for the asset that I'm trying to purchase.
So I would really recommend for anyone who's on a high level just going in to try and you know, hey, I'm not looking for this is law here but I do want to see, you know, what do homes really do 70k here? Do they really do 300k? Do they really do 200k?
It's definitely a great sanity check tool for you.
And there is a second tool as well in price labs. If you're not wanting to do the entire market, like say you don't want to see all of Pigeon Forge or you don't want to see the entire coastline, you can always just use the rentalizer tool. I believe it's actually called the Revenue Estimator Pro that just gives you targeted data at that point. So say you've already identified your market, you're only looking in, you know, the panhandle, you're only looking in Texas or wherever it is, and you just want to see two bedrooms in this one area. The market dashboard on Price Labs gives you everything from one to six to ten bedroom homes. But the revenue Estimator Pro, that just gives you two beds. So say, you know, you want a two bed, you want it on this coastline here, you want it in this particular area, it'll give you just two beds. And it saves you all the time for having to comb through all the extra data as well. And that's also a lot cheaper than paying for the rest for the actual market dashboard too.
So there's multiple tools with the platform that you're able to use and utilize.
[00:18:51] Speaker C: Yeah, I think that's really important and a really important call out I think here for new investors especially is we're not looking for what you call the law or what I call like gospel or the bible of like, okay, yes, type the number of this house in and this is what it will do. You're looking to identify patterns, so you're looking to identify patterns in the type of house, the style of decor and the income. So we're not looking to be told this is exactly what this house will do. And frankly, if you need somebody to tell you exactly, you've got a lot more work to do in learning how to analyze and learning how just, you know, how this business works because it's extremely subjective and if you're having a lot of people just tell you what to do and tell you what to buy and analyze things for you and do everything for you, you're not going to learn.
And if you don't learn, you're not going to be successful in the long term. So it's really important that you guys learn how to do this and how to. When you're analyzing. We're looking to identify patterns and not for one right and only number.
[00:19:54] Speaker B: I would go as far to say too, when you are learning these platforms, you, you don't need to be a data scientist if you just want to do the surface level stuff as a mental check. The Revenue Estimator Pro is excellent for that. It can just tell you straight off the bat, all right, are there 10 homes in the area that are doing this, this revenue? Yes, it can. It's a much easier tool to use and you can filter it off some extra stuff. You know, you just Want to see some, some higher rated homes? You just want to see homes that have, you know, north of 20 reviews, simple things like that. The revenue Estimator Pro on Price Labs is fantastic. If you're like me though and you really want to get in the weeds, I don't recommend this because it has consumed my life and I love establishing patterns for, you know, even pet versus non pet friendly homes. You can do that kind of stuff on Price Labs. If you really want to get into the crazy nitty gritty, you can.
But do know that you can use Price Labs as just a surface level. All right, I need this little gut check. I need to make sure that I'm not being told something different. I need to make sure that I have maybe a few examples of what I'm trying to do in this market. And so it is great for that too.
[00:21:11] Speaker C: Yeah. Basically guys, what we're trying to tell you here is always be analyzing. I wish I'd come up with a abc like always be close but always be analyzing. So don't just take the rental history at face value. Don't just take what your agent tells you at face value. Always do your own due diligence. Get your own subscriptions to these services. So Price Labs, we actually have a discount code. It's not an affiliate code. I don't believe in affiliate codes. I believe in recommending companies that I know, like and trust will do a good job for you guys, the listener. So we do have a discount code for Price Labs Market Dashboards. It's short term shop, I think that's good for one free market dashboard, I think.
But definitely check it out anyway. You need to be getting your own subscriptions to not just the Price Labs Market dashboards to all of the data services because they're all going to pull things a little bit differently. Things are going to look a little different on all of them. And again you are looking to establish patterns and eventually you probably will end up with one data service that you like the best that you just is your go to.
So, but always my point here is don't just say, oh, this rental history looks great, I'll buy this. You need to be doing this deeper analysis or you know, don't say, oh well, the rental history on this sucks. I guess it's the house, which it can be if it's dated, but that's fixable. Or it can be bad if it's the manager. But also by the same token, you can't assume, well, I'm going to buy this grandma cabin that's not doing that well. And I'm not really going to do anything other than put it on airbnb and manage it myself and expect to do wildly better than this person. You do have to actually put some effort in. But anyway, using all of these tools to establish patterns to get you to a range to a number that you feel is attainable for you and the property is. Is what we're looking to do here.
[00:23:01] Speaker B: Yeah. And Price Labs honestly is my go to. If you're an Air DNA whiz though I will say Air DNA is a phenomenal tool. Just make sure you're using the map function on that because otherwise it can come. It can pull data from all different regions and stuff.
Air DNA. Sometimes you also have to do that little mini gut check too.
Both of them though are fantastic tools.
I don't know of anything else actually for other than Rabu. I think for analysis that I think I kind of would treat as a high level analysis tool. Do you.
[00:23:37] Speaker C: There's. There's a few other ones. There's. I don't even know how to pronounce this one. I'm going to say Aerobitics A, I, R, B T I, C S. That's a European company and I just kind of started playing around with it a little bit. So I don't have any feedback yet.
But there's that one. There's a few other ones popping up here and there, but I do like the Price Labs tool just because you can drill down a little bit further than a lot of other ones. So Wade, do you think we can get you back maybe for. We're actually starting to drop two episodes a week, so maybe for this Friday's episode maybe we could have you back to just do a little run through with us.
[00:24:16] Speaker B: Sure, yeah. I would absolutely love to.
[00:24:19] Speaker C: Awesome. So Wade, before we go, is there anything. I guess I'll ask you this for a new investor or an experienced investor.
What are the key like your, your one big piece of advice for if you're gonna go get a Price Lab subscription to check out their Market dashboards, what's your main piece of advice that you want them to take away from this chat?
[00:24:43] Speaker B: First thing is when you go in, it's a very detailed tool. Try not to get overwhelmed. If you just go into Market Dashboard and start clicking around, things are going to get look really, really weird for you really, really quickly.
I would recommend if you're looking in a particular market, just go in, carve out a little area and just go and look at it, sort it by price. I would add in.
If you're looking for homes that are a little bit higher performers, you're probably going to want to check two or three filters. So the first filter is going to be right in the top right corner is going to be. This is an active home that's rented from north of 270 days. That's going to be the first thing that's going to help you out because you know you're looking at full time rentals for that. The second one is going to be if you're going to be marking it for a highly rated home, you want to see homes that are probably ranked higher than 4.7 stars. So you know you're looking at good comps, not homes that are like 4.2, 4.3 that skew all your data down.
You want to make sure that you're actually looking at real data there. And then the third thing, start clicking around and sort the homes and click on their Airbnb links. Their Airbnb links are pretty present on the platform. And just go look at them and then check out what their revenue is. And you can do it for 10, 15, 20 in a row. And then just start mentally, you know, filing that away. And then when you go look at a two bed in the same area later that week, just say, oh, I saw twos in this area. I saw on the high end they were doing around 70 or 80k. On the low end they were doing around 50 or 60k. Why is that?
Go back, look at that spreadsheet and say, well, this is why that's the biggest thing that I love to do on price labs. All the other filters can kind of get lost in the sauce. You know, you can kind of get a little overwhelmed if you do those three things. That'll get you pretty much across the board. Everything that I would say is required when it comes to analyzing a home in a new market.
[00:26:46] Speaker C: All very good advice, Wade.
How can guys, if you want to buy a short term rental in the Smokies, Wade, how can they get a hold of you to do that?
[00:26:58] Speaker B: Yeah, so shoot me an email or reach out to our lovely team and ask for me. But email is Wade W a Y D
[email protected].
[00:27:10] Speaker C: All right, thanks so much, Wade.
[00:27:12] Speaker B: Thanks so much.
Ram.
