All Forum Posts by: Christopher Fordinal

@Christopher Fordinal Just a few things I see. Cleaning is a pass thru to the guest normally so I wouldn't include that unless you are including it in your Rental Income totals. I woud use ADR and Occupancy rate to get that total if/when possible.

STR's have really high Op Ex ratios so unless you are putting a lot of cash down it's going to be tough to get positive cashflow unless you are getting a good value add purchase opportunity.

My excel sheet and yours are actually almost the same. The major difference is I am currently taking 15% out for maintenance and Cap Ex; whereas, your sheet is only taking 6.6%. Have you found 6.6% to be enough to cover your costs?

Edit: Oh the other major difference is your sheet doesn't include any furnishing costs.

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Originally posted by @Paul Sandhu:

@Christopher Fordinal You should add cable/satellite and internet to your monthly expenses. It's a necessity, just like running water and air conditioning.

good to know. Thanks Paul.

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@Cliff H. - simply basing that off of multiple landlord comments I had read on BP. I'd love to be wrong with that. wasn't 100% sure what to estimate. If we assumed a 60% occupancy rate out of an average 30 day month = 18 days. Im estimating that to be about 6 turnovers on average. Is that thinking off in your opinion?

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@Bruce C. - the occupancy is based on $195/night with a 60% occupancy rate. which equals the $3,558.75.

Also, you're right that a $200,000 house in Galveston isn't very nice. I was just saying that at those numbers you barely cash flow on just a $200,000 house. Let alone anything more expensive. I know plenty of people are cash flowing in Galveston doing STR but I can't figure out where I am wrong in the numbers.

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@Denise H. - Yes those numbers (from what I have researched) are what can be estimated including the cleaning fees and HOT taxes.

@Paul Sandhu - completely agree with what you're saying. unfortunately I live in L.A. and can't get to these places.

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Hey guys,

I am looking at getting into the STR game in Galveston TX or Destin FL. The problem I keep running into is that I can barely cashflow with the numbers I've researched. I would love for anyone who is currently operating a STR to look at what I have below and let me know if I'm off somewhere with my cost estimates.

Rental Income ($42,705.00/YR)	=	$	3,558.75
Expenses
Cleaning	–	$	711.75	20%
Maintenance (Monthly & Cap Ex.)	–	$	533.81	15.00%
Utilities	–	$	302.49	8.50%
Property Taxes	–	$	325.00	9.13%
Insurance: flood, windstorm and homeowners = 4000/yr	–	$	338.08	9.50%
City HOT Tax (Galveston)	–	$	320.29	9.00%
AirBnb Fee	–	$	106.76	3.00%
Other (Beyond Pricing)	–	$	35.59	1.00%
Net Operating Income	=	$	884.98

At these numbers I am barely cash flowing if I bought a $200,000 house (and that's cheap).

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@Timothy Church I just sent you a pm. Hope we can touch base.

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All Forum Posts by: Christopher Fordinal

Christopher Fordinal has started 2 posts and replied 17 times.

Post: STR: Where's my mistake in my numbers.

Post: STR: Where's my mistake in my numbers.

Post: STR: Where's my mistake in my numbers.

Post: STR: Where's my mistake in my numbers.

Post: STR: Where's my mistake in my numbers.

Post: STR: Where's my mistake in my numbers.

Post: Vacation Rentals in Galveston TX - Occupancy Levels