Short-Term Rentals in Philadelphia

[Andrew Reyes]

Hi All:

I have a group of like-minded investors in NY that have has a great deal of success  with short-term rentals (AirBnB). They are expanding to PHI and have approached me about partnering with them on a deal.

Below is the info I have so far, looking for advise on what I am missing from a data standpoint, and what I should know about the market in general.

Property type: Townhouse

Listing price: $550K

Layout: 2bd/2ba

Property taxes: $13K

Income expectation: $200-$300 per night

Leverage: approx. 85% LTC

What is a good estimate for the following:

Financing fees

Closing costs

Vacancy rate: (I was told 80% is a conservative estimate for the area)

Repairs & Maintenance

Cap Ex

Thank you all in advance for the advice!

[Paulette Midgette]

@Andrew Reyes, have your potential partners explained to you or have you researched yourself the short-term Airbnb regulations in Philadelphia?  If not do you homework and include in your figures, the tax and fee assessments.  Also, there are certain residential neighborhoods where short-term rentals are not allowed.  Is the property you are considering one of them?

I will say this again, do your homework.  It is great to ask the advice of folks here but nothing substitutes for getting the information yourself.  Especially, if you are doing business in a city you don't live in or is not familiar with.