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Updated over 7 years ago,

User Stats

4
Posts
1
Votes
Sam Tee
  • Investor
  • Palm Desert, CA
1
Votes |
4
Posts

Which cap rate would attract investors for short term SFR?

Sam Tee
  • Investor
  • Palm Desert, CA
Posted

Hello, everybody, first post here. Currently I have 3 properties in desert cities near Palm Springs, CA. I rent them all short term through Airbnb, each property brings roughly $6K each month, season or not. All of them I purchased for $350K with 20% down plus closing, reno and furniture took about $50K each. My cap rate calculation give me 12 x $6K = $72K - 36K(operating cost - mortgage, property tax, insurance, utilities, maintenance) = $36K : $125K = 0.288 = 28%, average cap rate I see between 8-10%, that's pretty much high in my case.  I have couple properties for sell which fits purpose and I need an investor/partner to go 50/50 or 30/70? Thank you

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