20k in bookings in the first week with Evolve!

[Marcello Di Gerlando]

Two years in the making - one year late and we have our 1st STR just outside Breckinridge CO. We chose to go with Evolve vaction rentals because of the low cost, low hassle and professional recommendations. So far so good. More to follow as far as Evolve is concerned. My pro formas have been blown to bits. We were aiming for gross rents of between 50 and 60k for the first year. With a goal of getting to 75k in year 2. We definitely came out the gates blasting with 5k of bookings on day 1 and just shy of 20k in our first week. (33days booked) We haven't had any guests yet! First group arrives tomorrow. I'm not sure BP will let me get a link posted here..here its is. Check out this Vrbo rental:

https://t.vrbo.io/T1Ja0EvKq2. We bought the house in marginal condition and then expanded the existing kitchen and installed a second kitchen in the mother in law. Bathrooms rehabbed and new fireplace installed. Paint, tile and furniture. All in at 600k. We already had an offer to sell for 880k but I think I might have a cash cow. Feed back, comments, experiences tips tricks welcome.

[Tim Schroeder]

I assume you paid cash and you have no mortgage since you said you were "all in at 600k". Assume that 60k gross nets you 30k. That's 30/600=5% ROI. You can easily make 5% in an index fund with less risk and less work. Remember that you could be investing that 600k in other places. If you had a standard 80% 30-year mortgage, that would be 30/120k = 25% ROI which is a respectable ROI. For what you put into that place (600k) you could have FIVE properties at 120k down each. Theoretically, anyway. Of course, your mortgage payment would eat into that 30k profit, and I'm not accounting for many other factors so my numbers are not accurate, but you get the idea. Leverage your capital, don't leave it tied up in one place. It makes you think the cash flow is good --- and it is --- until you divide it by the money you invested, at which point it may look inadequate.

The other thing is 880/600 = 146%. That's a sweet profit most people would die for. Take it and go buy another deal. The market is likely at its peak and there isn't a better time to sell. There is likely a recession coming in the next few years.

Having said all that, this is early days for you. Wait and see how your 12-month numbers look. 20k for 33 days is impressive, but how will that pan out over 12 months?  You really don't know yet. That was probably ski season, how will you do in summer?

I'm in Castle Rock, CO, btw. I have 2, soon to be 3, vacation cabins in TN doing very well. But I want something in CO that I can take the family to now and then. Breckenridge has been on my radar for a while. Would love to talk more with you, trade ideas and spreadsheets, who knows, maybe even go in together on something. I've been toying with partnering with other investors to go after bigger projects.

Also, GOOD JOB!  Everybody here has a lot of (constructive) criticism, but you've still done a good job turning a fixer into a money-maker. Don't take our suggestions the wrong way. That is a hellofa success in any case.