First-Time STR Buyer --- Feedback / Guidance Requested

[Eric Carlstrom]

Hi all,

I have a few long-term rentals and am exploring a STR for the first time, and am seeking guidance / advice on my expected expenses (and ideally what i'm missing that i should factor into my calculations). Part of the value of the STR is that we will plan to use this property 4-8 times per year.

The property is a few hours from the major metro that I live in, and is a vacation destination for lots of people in my area. So much so, that according to AirDNA data there are 4000+ properties on airbnb / vrbo in this destination, though the property that I am evaluating has been used as a primary residence and has no rental history. As I'm sure most of you know, a long-term rental is simple since the only recurring expense I own is the mortgage, whereas with a STR I'll own the mortgage, internet, utilities, furnishings, cleaning fees, etc. which just makes my projections a bit foggier.

I'm looking for feedback on the below expenses and wondering what else I should be thinking about, that I don't currently have listed. I have spoken with the realtor at length and gotten copies of utilities bills, internet expenses, trash fees, etc. so I have reason to believe most of these are pretty accurate, but again, would like some feedback from the community on what i'm missing and what else i should be considering. Here's what I'm accounting for currently:

Mortgage (P&I)
Insurance
Taxes
Electric
Water
Trash
Internet
VRBO/Airbnb fees
General/Repairs
Cleaning (though these will be passed through)

If i'm super conservative on my monthly rate, I will need to rent the unit 10 nights/month to break even, if I am more realistic with the rate (according to my realtor who runs two STRs), i'll need to rent it 7-8 nights/month to do so. Also looking for best practice guidance on the risk tolerance based on these numbers. Thanks in advance.

[Lauren Kormylo]

I assume there's no HOA?

Re trash, you may have to pay someone to take the cans to the curb for you, as you can't expect guests to do that. Either a neighbor, cleaner, or some trash companies you can pay extra to pull the trash cans out for you.  

Another expense is replacing items that are broken, stolen, or worn out over time.  It's usually not a lot, but I've had to replace a broken office chair that was only 2 years old, had better quality bed pillows been switched with cheap Walmart ones, and had a blanket go missing.  Things like that.

Make sure to get fairly fast internet if you'll host a lot of guests.  I assume you'll use streaming only for TV, no cable or satellite?