All Forum Posts by: Brian Barch

No.

the beauty of real estate is the long term net worth impact. You don’t want to be doing arbitrage for 10 years with little to show for it

Do all of the following:

1) the enemy method on local comps

2) free sites like Rabbu, awning, and freemium Airdna. Search a radius and determine what the low/med/high properties are making by bedroom count.

3) make note of what the top 5 properties have in common. Do those things.

I would not use the rentilizer portion of these sites.

Airdna

Pricelabs market dashboard

Rabbu (free)

Awning (free)

others: chalet, remedy, bnbcalc, STR insights, StrIQ, arbtics

1) location

2) design and amenities

3) revenue management 

Quote from @Emily Poerio:

Thanks for the reply Dustin! Yes, I have subscription to AirDNA and the analysis states expected income at 63.5K.  I do have the actual rental income for the past 3 yrs at 69K, 55K, and this year 40K to date as of beginning of Aug.  It was built in 2021; purchase price 615; was planning downpayment of 25% or possibly 30% if rates better.  

Assuming this is purely for investment sake, $55k on a $615k property isn’t a good use of your $$$. You want to target homes/markets where %15-20 of the purchase price in yearly revenue in possible. Meaning this place would have to do $100k/yr in revenue

I want to know:

High/med/low revenue by bedroom count in a market. I then want to compare this to the median home price by bedroom count in each market. I want to compare these ratios.

I also want a summary of features of the “high” category above.

lastly, I want to know where those high properties are clustered, and if the market is saturated or not via comparison of supply vs demand growth.

Hope that helps! 

My primary cleaner gets a text via hospitable that she has a cleaning.  When cleaning is done, she sends a text and a Venmo her.

She recently got a different primary job, and thus she can't do same day, weekday turns.  So I started using a backup cleaner on Turno.

I agree that Turno is expensive, at the same time, part of self managing and scaling is that I make it manageable.  I don't want to get into a scenario where I have 6 STRs and have to text and Venmo all of them.  TBH, despite the cost I prefer using Turno.

It depends. Is it costly? Yes, but that doesn't make it bad if it unlocks future profits for you. I would use the minimum I needed to make the STR successful, and have a backup plan if the STR lost money.

In other words, this might be best suited for someone with a big W2 shovel, they just don't have the full downpayment built up yet, but if they ran into future issues or slow STR months, their W2 could cover it (and the HELOC payment).

Also, you have to really research your STR investment first to be almost certain it will profit.  
But STR investing can be fickle over a SHORT TERM horizon.  I remember when people were doing whatever they could to buy a rental cabin in Blue Ridge GA near me.  So many gold rush stories.  Two years later and that market is down 30% while costs are up.  What seemed like a great investment 2 years ago would be a poor one now......which is why you need to go in with a long term horizon in mind.

I certainly view STR as higher risk, higher reward.

You are dealing with discretionary spending from your customer base vs necessity spending with an LTR.  Factor in regulations and being dependent on OTAs, and it seems pretty clear to me.  That said, I might find a different lender.

I use it. Cuts down on the back and forth. Haven’t had any issues yet