Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
New Member Introductions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply

User Stats

2
Posts
0
Votes
Jeremy Pieroth
0
Votes |
2
Posts

Vacation Rental Properties

Jeremy Pieroth
Posted

I'm new to real estate investing and have been looking to buy properties for vacation rentals.  Does anyone have good books or resources to educate myself more?

I live in Southern CA and most of the stuff is not within my current budget. I have been looking into Palm Springs areas for 3/4 bedroom properties with pools. I have been working with a realtor, going through the MLS, and have identified a property management company that provides ROI on properties I'm interested in.

I'm open to looking into other markets that I can get a better bang for my buck.  Besides the Socal areas I have looked into the Poconos, Orlando, and various FL beach cities.  Any suggestions on what areas or markets I should be looking into invest?

With having a good property management company in place and making solid returns I don't see why it would matter how far I live from the property.  What is a good projected monthly return I can expect?

Most Popular Reply

User Stats

59
Posts
91
Votes
Serena Kim
  • Real Estate Agent
  • Orlando, FL
91
Votes |
59
Posts
Serena Kim
  • Real Estate Agent
  • Orlando, FL
Replied

@Jeremy Pieroth

Education - YouTube University. There are a ton of blogs out there (especially here in BiggerPockets), but I’ve found YouTuBe to be a great resource for learning about the short-term rental market (Airbnb)

Location - I like the Kissimmee area a lot (right next to Orlando, 15mins from the Parks). My thesis is that people will prefer private houses with private pools vs hotels going forward. So far, a good percentage of my guests told us they used to stay in hotels but wanted to try “this airbnb thing”, and they loved the experience. For investors, Florida provides a great investment opportunity, no state income tax, and very low costs

Return Expectations - that will vary greatly, but the below can serve as a starting point:

House cost: 250k (around zip code 34746/34747)

Remodel cost: 10-15k

Insurance: can vary greatly, but 1,500 a year avg is a good starting point

Average nightly rate: 100-150 now, later in the year higher (200-300)

Expenses (monthly):

Electricity: ~250

Internet: ~60

HVAC and Pool maintenance: ~150

Landscape - usually covers by HOA, but if not ~50-75

HOA: the lower the better, but 50 a month is a decent average

Property management - 15-25% depending on level of service and company. I manage my own

County Tourist Tax: 6% (airbnb now allows hosts to charge it to guests, nice feature)

With that you can create an excel spreadsheet to get the numbers. When I model this I use 5 scenarios: Bear, Slow, Average, Above Avg, and Bull. The numbers will depend on the property and location, but you could start with 70 a night with 20 nights booked as Bear, and 200 a night with 25 nights booked as Bull, and fill the middle.

Hope that helps, feel free to reach out with any questions.

Serena

Loading replies...