Short-Term Rentals and there numbers. What is a good deal?

[Jennifer Soltis]

Hello,

I am new to this area of investing. I am looking to purchase a lake front property that is listed in my area. I have put the information in the Tools, Airbnb and not sure if it is a good deal or not. It comes up with a 20% property management fee. Who gets this portion, is it Airbnb with there hosting fees? But anyway, the PP is 370k and potential income is 90k a year with Operating Expenses of $25,949, NOI of $63,050 and cap rate of 17.05%. I have purchased Avery Carl's new book and still waiting for it to come. Thank you inadvance.

Jen

[Alesandro Breguez]

@Jennifer Soltis @Chase Lowry, Regarding the ''manage yourself'' I would be careful since you are trading your time for the higher returns.

Managing yourself would save you approx. 18k in PM fees, estimating 5h or work per week (dont estimate the headache of STRs) over 50 weeks a year = 250 hours = $72 per hour.

It would depend of your situation, if you are a highly paid professional who makes more than $70/h you might want to reconsider. If you are happy with this hourly rate, then Chase might have a point and it would be worth it to self manage...