All Forum Posts by: Frank Patalano

 Thank God we did not buy our boutique hotel last year based on AirBnb proforma. We are performing at less than 50% of what the fake proforma numbers If we had told us.

 I am actually very excited about the current market. Being creative is back. It's not all about top dollar at the moment in many markets.

When you say new contractors, are you saying newer to the business or new to you? I am trying to get a sense if contractors are slowing down and have more free time. Not a ton of free time but at one point, some contractors did not even have time to breathe.

 If you are referring to passive investing, the return is different on every deal. On many deals, there is a projected annual distribution of 6-8%. After sale, most people expect to double their money in 5-7 years. Other deals might have a higher return but may also involve more risk.

What does CCNR mean?

You could consider doing a passive investment into a syndication or a crowdfund for $50k or less. 
The investment is rather illiquid so you may be stuck if you needed the money until you sell or refinance that is why I suggested a small amount.

I was working 7 days a week and still self managed 15 units at once. I had a list of people to call if I was not available. I had a preferred handyman, plumber, electrician, etc.

In short term rentals, I have heard 20% being common in some markets. Long Term rentals should be 7%-12% of gross rents.

I would pick Cashflow first. Appreciation is a bonus.
I haven't looked at San Antonio lately. 
If you plan on self managing you could see significant savings vs investing out of town or out of state.

Overall buying based on "AirBnb potential" sounds like a terrible concept. 1 excited municipality can wipe out your profit with the swipe of a pen.

1. Traveling is sometimes a trend. Tiktok has made it cool to go to one place one month and then another next month - Traveling is a trend? Nah. But today's technology and culture does allow more people than ever to work from anywhere.

2. Heard AirBnb is getting more strict with their regulations - larger companies/hotels are now listing their properties there. - Hotels have been on there for a while. I'm more worried about municipalities cracking down with regulations. Airbnb.com is actually aggressive watched by some towns and you can get fined if it is in an area not allowed by zoning.

3. AirBnb is getting more expensive. Recently found that it was $200 cheaper to use Booking.com than AirBnB. The nightly cost was the same. After all the taxes and fees being charged on AirBnb it didn't make sense for a short trip. Possibly for a longer stay it could be justified. - Are you talking for a hotel? Airbnb does a good job persuading hosts to discount long stays.

4. People are buying very expensive homes (1M and up) and hoping to get crazy returns - recession could impact how nice of a place people would rent. I hear lots of people who own airbnbs are getting most of their requests from 20 year olds looking to party in their mansion. I'm seeing some slowdown because with more new people during short term rentals there has been an increase in supply.