New to STR questions

[Ted Caputo]

I am researching STR and multi-family. I just watched a video by Avery Carl on STR analysis and had two questions.

1. As she was determining gross income she used average daily rate and multiplied by 355 days. Isn't that very aggressive?

2. As she calculated down payment she used 10%. I thought less than 20% triggers PMI or other expenses? Are there different rules for "second homes" as compared to primary? She mentioned that she would use the property personally a few times a year.

She was analyzing two of her own properties so she may actually have 355 days occupancy? I have been looking at year round destinations and seasonal destinations and try adjust accordingly. I'm usually very conservative with year round and figure at 70% occupancy. I have also asked Property Managers for occupancy rates and will have to try Pricelabs and/or AirDNA.

[Luke Carl]

If you're trying to use a property manager you wont get these numbers. Avery is very pro "self management"   

355 is not quite realistic I'm not sure where she said that lol. But depending on the property 85%+ is totally do able. But also not necessary. The more occupied it is the more you're working. One of my favorite properties makes a ton of money and it sits around 69% occupancy (large beach property).

Also 10% is not necessarily for renting. It is a "second home" and you would of course need a big enough day job to pay the mortgage with no rental income. So if your purpose is income you will want to do an investment loan for sure. Although you are allowed to put your second home on VRBO when you're not using it. But you can not use a property manager.

You can also tag @Avery Carl she hangs out here.