Under writting vrbo

[Ryan Webster]

Curious as to how experienced vrbo investors are doing under writting.

How are you pulling comps? What are the most important metrics ie( sleeping capacity, amenities, location, bath rooms)

Where do you find short team occupancy rates for your market?

Where do you find tourism statistics for your market?

Do lender structure debt differently for short term rentals?

How do you estimate cleaning cost, is it simply a multiple of projected occupancy?

What is the target cashflow when considering a property?

Besides cleaning, and platform advertising expenses are they any other expenses unique to the vrbo strategy to take into consideration?

[Paul Sandhu]

To answer your questions:

Comps are motel rooms with 2 beds.  Bathrooms and sleeping areas are important.

Occupancy rates are similar to motel occupancy.

There is no tourism in my market.  Just guys with neck tats that drive jacked up 4x4s and chew tobacco in their sleep that come here for contract work in a refinery.

Can't answer the lender question.

My cleaning lady does it for free, and I get to sleep with her.

6 months gross rent should be greater than the purchase price of the property.

One of my properties has needed an exorcism ever since I bought it.  I've been postponing this as long as possible, if not permanently.  I've had people that don't know me call and ask if they can stay in the haunted house.  They heard about it through word of mouth.  It's a 3 story house with 4 full baths and 8 beds.