All Forum Posts by: Christine Smith

 I'm not entirely clear on what you mean. Do you mind expanding further on "I'm not as worried about the negative cash flow as I am about this being what you invest in." Thanks!

 Actual properties

@Conner Olsen, we actually do this at another property we have. I’ve thought about implementing it in other markets, but haven’t figured out how to research if it would work elsewhere since most Airbnb data tool are focused on nightly rentals. Any tips for how you vetted your market for mid-term renting? 

Quote from @Nathan Gesner:

Quote from @Christine Smith:

I need a little feedback. This is my formula for running numbers on a property (it's faster than running a million BP reports). We're using a HELOC for our downpayment (that's the G-column), and I'm calculating CapEx, Vac, Maintenance at 25%. It's leaving me at a loss at each property.

Where would you go from here? What would you change? What am I missing? 

Thank you!

It could be you're missing an understanding of reality. Sales prices have increased 50% or more in the last few years. This is an extraordinary situation and properties that would cash flow in 2018 may no longer cash flow today because the purchase prices are so high. 

Prices will eventually stabilize. Rent rates will eventually catch up. Until then, you have to look harder to find a good deal. Have you considered shopping around in other markets? In my market, I can only get a 0.5% - 0.7% return under the best circumstances. There are other markets out there where I can still get a 1% return or better, so I'm shifting that direction.

@Nathan Gesner thanks for your reply. Would you ever consider buying with say a small negative after all costs (~$100) with the hope/assumption rates will come down and rents will go up? Or is an auto no-go for you?

I need a little feedback. This is my formula for running numbers on a property (it's faster than running a million BP reports). We're using a HELOC for our downpayment (that's the G-column), and I'm calculating CapEx, Vac, Maintenance at 25%. It's leaving me at a loss at each property.

Where would you go from here? What would you change? What am I missing? 

Thank you!

That's a really great question - we've done well with LTR and mid-term STR. I think I'm also feeling a push to maximize profits so have perhaps initially disregarded LTR even though we're experienced in that category.

I have my eye on a couple of markets - local and OOS - I see potential in each one on my list for different reasons, and with different strategies. Given current market conditions, how on earth do I settle down and choose one now that I'm ready to take actionable steps? I just watched David Green's analysis webinar, and realized that I'm stuck at analysis - I see too many different possibilities and I'm getting overwhelmed and bogged down at this step. Any advice is appreciated! 

Rent control. Also, depending on your strategy, STR regulations.

I've tried very hard to get the council to reconsider, and then COVID hit. The work around is you can list furnished 30+ days rentals and I list ours on Airbnb and get bookings. So if you're willing to deal with longer term stays it's possible. Just not a true STR strategy.