Airbnb how to start?

[Michael Guzik]

Hey guys I am looking to getting into Airbnb here in San Antonio and am wondering where to start? Should I be looking for 2,3 or 4 bedroom houses? What do you guys look for when searching for a STR or house to Airbnb? Is there any advice on houses or things to stay away from when just starting that you suggest? Any and all advice or wisdom is much appreciated!

[Rick Baggenstoss]

I would start at a higher level.  Do a brief business case.  Something like the below.  If you're not clear why you're doing this, then you're not likely to start off as well as you would otherwise.  By the way, I wouldn't encourage anyone just to plan for one short-term rental.  Plan to do 5+ where the first one is a prototype for you to learn.

Fill out something like this:

Mission:  

Provide short-term rentals in the San Antonio market to cater to value-oriented travelers.  

Vision:

Provide various housing options ranging from single travelers to small groups less than 10.  Achieve some scale where this can provide $10k per month net income.

Strategy:

Start small with 2BR houses with rental income yield of $3k for purchase price of $200k.

Purchase, quality duplexes ...

Control costs and learn business by self-managing for a year.

Leverage W2 to ...

Leverage FHA to ...

etc.

Risks ....

- Regulatory

- Neighbors 

- Competitive

......

5 Year Financials:

Purchase $200k

Loan $180k

Rents:  $3000

Mortgage: 

Utilities:

Maintenance:

Cleaning:

Setup:

Improvements:

Net Income:

Appreciation:

Equity Build Up: