All Forum Posts by: Amity Word

@Amity Word, very curious about where you're getting these AirBNB rental rates from. An SFH sub 300k in ATL mostly points to B-/C+ class submarkets (30-40 mins from Midtown). Are you noticing a vast difference in rent rates between 3-bedroom homes vs. 4-bedroom homes? That just seems very odd to me considering your purchase price criteria. Not to mention, location is the primary driving factor when it comes to Airbnb rental rates. Yes, property condition, layout, fixtures, and bedroom count all play a role, but your predominant Airnbnb tenant decides to stay based on location and proximity to attractions. To answer your question, I see far too many newer investors become fixated on cash flow and end up never taking action because of it. The first deal does not need to be a home run, you just need to get on base to build momentum and gain some experience. Hope this all makes sense and helps! Feel free to reach out if you have any additional questions.

I believe if you look hard enough, you'll be able to find a deal that will meet your ROI goal. It's going to take you searching high and low to find that right deal. If a deal doesn't meet your criteria, pass on it. Where are you looking to find deals?

If you think you can get a better deal then don't settle.  From your post, it is not easy to determine how hard you have searched for a great deal.  Is this home a deal?  Is it priced under the market? 

If you turned over every stone and this is the best property there will likely be then go for it. If you think there is likely a better deal out there...then keep looking!

Thank you that doesn't look far off from my rates. But any suggestions on ..what if I only have 3 tenants vs. 4? Then do I set the rent for each room higher to make up for not having a 4th tenant?  Or keep it at what you said; $1300-$900. 

@Amity Word Hi Amity, I would suspect you can rent the rooms for more with a private bathroom but when I had my bed and breakfasts I discovered that sometimes people just want the cheapest option and maybe you rent 2 of the room on the higher end at say $12-1300 apiece each with a private bathroom and then rent the other two rooms at the lower price point of say $900 apiece with the shared bathroom.

This would guarantee you the highest cash flow but you also might have to take into consideration some house cleaning of the shared bathroom and common areas in your monthly expenses. It probably wouldn’t cost much to get a house cleaner to come in for 2 hours a week to clean the living room, kitchen, and shared bathroom unless you live close by and want to do this yourself to keep the house in great condition for your tenants.

Hey Amity,

Well it all depend.

1- Do a research on your market to see how much comps of your property are generating in your area?

2- How much are you comfortable cash flowing per month? $100 or $1000? 

Today's markets are very turbulent and things can change very fast.

Amity Word - How did you determine the range from $950 to $1300?

I look for room comps and amenities at Spareroom.com and https://www.padsplit.com/