All Forum Posts by: Andy Plattner

Only speaking by my exp. I live in a small resort area and I have a small 1 br condo.  Bought it at a low price so fixed it up and hoping to sell it but in the mean time, I am doing short term vacation rental.  Because it is a condo, I dont want to hassle with all the other condo owners, tenets and onsite management, so I let a management company take care of the unit to field all the complaints.  I am breaking even because I am in competition with about 800 other similar units all trying to do the same thing.  

I also have a house that will sleep 24 persons.  I am doing well because I am doing the mgt myself and using airbnb, vrbo and flipkey.  Not that my opinion is very valuable to you since you are in a different area, but to those where I live, 1.  do you own management and 2.  dont go into competition with 800 other similar units unless you are going to offer something different or unique.  

So know your market and study the numbers.   

Hi Brandon,

Thanks a bunch. I am looking a calculator and looking at the numbers, it is better to try to include any repair/upgrade cost in the loan. I did talk to the mort broker and he is having no problem including some of the upgrade cost in the loan. Using the calculator, I am showing a much better ROI vs not including the upgrades in the loan.

I just got on Airbnb and I like that because I also get to rate the guest.  That is cool.   But I also use Vrbo/homeaway and flip key.  All three have been very successful.   

Hi John, Thanks for your reply

I actually own a similar property which is a duplex and that is where my potential income/expense numbers came from.  I tore down the middle fence dividing the property and it has been successful  as probably 1/2 of the market in the area are vacation rentals close to the beach (1 to 2 blocks)  While this could be a multifamily home for long term rentals, I took the concept of renting both duplexes to only one family/party/family reunion/etc.  parties up to 25 persons.  Thus they share the same back yard.  I agree with you sharing the backyard/pool is not healthy for vacationers renting a home.  I do have several exceptions of renting more longer term ie 1-2 months and that is during the down time and I let the couple(s) (usually retired couples) know ahead of time that the backyard/pool is shared.  I have not had any problems yet.  The difference is now this is a triplex (meaning I can possibly accommodate bigger families)  The property I have now I own free and clear so is pretty easy to make a profit.  Do the numbers work on the one for sale?

I am looking at purchasing a Duplex with an apartment on the bottom floor, I guess this making it a Triplex.  I am looking at possibly turning it into a vacation Rental.  I am thinking this is a good deal but can someone tell me why I should not buy this property based on the numbers.  

List Price is at $330000, but I haven't looked at any specific comps even though this property price per sq ft is considerably lower than any other listed or sold in the area.

Looking at getting a mort for 80% with a 2nd mort  10%.

Possibly looking at putting in $10000 (Furniture, paint, small stuff, minor main) plus a swimming pool at $30000.

Sq Ft Total is 4000, Top two apartments 3br and bottom is 2br.   Tax is 6400, I am guessing no more than $8000 insurance (This is property on the coast)

Supplies and Main including cleaning at 900 per month

Monthly Mort Payment 1530

Potential Yearly Income at 74000.  Some of these numbers are based off of a similar property I have.