[Calc Review] Help me analyze this deal

[Maverick Farr]

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey, my names Maverick and I'm very new to real estate investing.  I'm 19 years old and dropped out of college to get my real estate license and invest in real estate.  Im trying to analyze as many houses as I can in my local area (San Diego area) and this is my first one.  I've done a lot of research on bigger pockets and even bought pro.  I just need any feedback on whether this house is a good deal to pursue for making it a rental property (short term/airbnb).  My numbers I feel are moderately conservative and It looks like the owners did a fix and flip.  Any feedback would be appreciated and how I could possibly go towards investing in this with no money down.  Thanks!

[Dan H.]

Quote from @Maverick Farr:

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*This link comes directly from our calculators, based on information input by the member who posted.

Hey, my names Maverick and I'm very new to real estate investing.  I'm 19 years old and dropped out of college to get my real estate license and invest in real estate.  Im trying to analyze as many houses as I can in my local area (San Diego area) and this is my first one.  I've done a lot of research on bigger pockets and even bought pro.  I just need any feedback on whether this house is a good deal to pursue for making it a rental property (short term/airbnb).  My numbers I feel are moderately conservative and It looks like the owners did a fix and flip.  Any feedback would be appreciated and how I could possibly go towards investing in this with no money down.  Thanks!

 Some comments:

- property tax is ~$100 low.  1.2% of sold price is safe, 1.1% is possible, it will be more than 1%.

- Vacancy is way too low. What will typically happen is you start the STR and the vacancy will be high. As you get more positive reviews the vacancy will decline. STR vacancy is unlikely to ever hit 4%. Even if it could, eventually unit needs to be taken down for a maintenance/cap ex item. For example, One of my STR units is getting a new roof in february but due to the location of another STR unit, both STR units will be down for a week.

- are you planning on self managing. PM for STR going rate is 25% with a low of ~18%. In PMs the budget PMs usually are missing something. Some are missing owner's portal. Self managing STRs is more work than managing LTRs.

- I saw no furniting budget.  The cost to funish is inversely proportional to the time you have to furnish.  However, there is a trade off as the earlier you can get unit listed and rented the earlier it starts to bring in some money to offset the costs.  

- What loan terms did you use?  I used 30 year fixed at 6% and get payment of $1732.  You can get better rate for shorter term but it would have increased risk.  You show principle paydown so it is not an interest only loan.

good luck