All Forum Posts by: Clint Harris

sorry, bad joke. Good luck with your strategy, it’s definitely different than what I typically hear from short term rental investments. Seems like you have a niche in your market dialed in.

Originally posted by @Paul Sandhu:

Originally posted by @Clint Harris:

Whoosh. The posts go way over your head.

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ok. Best of luck with the body building. I’m sure my situation is different than most, we

had money for a duplex in September 2018, built that into arbitrage for 4 more units in early 2019, and used that to purchased a quadplex in 11/2019. We Net $1000 per unit per month over a yearly average. Probably not amazing compared to the rest of the world, but currently Doing well and immediately shopping for more units. Currently looking for a hotel, 20-40 units, that we can convert to invisible service. Will probably face-plant, but either way, Should be a fun 2020.

Originally posted by @Paul Sandhu:

@Clint Harris you seem to be the exception to the norm. Congrats on doing something that is working for you in your market.

I see this exact same discussion in bodybuilding forums. Some people are dead set on a full body workout routine 3x a week. Other people advocate a Push Pull Legs or some other split.

What the 2 have in common is that you have to do what works for you. I can't do heavy sets of 6-8 reps. But I can do moderate weight sets of 12-20 reps You have to do what works for you.

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It’s an imperfect science, but so far it’s the best metric that we’ve found for setting a benchmark for performance. AirDNA uses the previous 365 days of STR bookings scraped from Booking, HomeAway, and AirBNB. It uses the median performance, so average occupancy, average daily rate (this is gross and includes cleaning fees and AirBNB fees), etc. there’s definitely no substitute for having eyes on your market and understanding where people want to be, but overall it’s pretty good. I run a rentalizer analysis on every property here before we move on it, and use that median performance metric to figure out what the margins are. So far, we’ve been able to beat those metrics pretty well because we try to perform at a high level. On our first property, AirDNA said we should do 47k, and we did 57k. That was a 3 bedroom, on some that said we should do 30k, we did 35k. One thing that’s really important to know, is that in a highly seasonal market, it can be off by 10-15% if you run it on the back end of peak season. Basically then it’s looking back at 2 peak seasons, so it will come in a little high. Same thing in the off-season. If you run it February to February, it will come in a little low. Not a perfect science, but pretty close. We always account for 30% of gross rents to go to cleaning fees and Airbnb fees, then take out the debt service and utilities, and a small Cap Ex %. We run those metrics, and want to see a net profit of $1000 per unit per month over a yearly average. Then when/if we do outperform those metrics, we set ourselves up for fun surprises.

Originally posted by @Brad Johnson:

@Clint Harris so much great info here, thanks. I'm a SFH investor in the Raleigh area and have been exploring going the Airbnb route next. How accurate is Airbnb's Rentalyzer in your experience/market? I actually spent a few years growing up on the coast, so this is a market I'm familiar with and would like to target (it would be nice to use the property on some days when it isn't rented too!)

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And just to see if the streak is still running.... Have you ever purchased and/or operated any short term rental, or ever used the leverage of Arbitrage to generate cash flow?... or just a nay sayer? How’s the scalding hot STR market in Hatfield, PA?

Originally posted by @Ken Latchers:

this is uninteresting or useless.

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Then why did you comment? Which one is it Scooter, uninteresting, or useless? Pick one, and please enlighten me.

Originally posted by @Ken Latchers:

this is uninteresting or useless.

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Sorry Sparky, that’s a fact. I’m referring to people that have commented negatively on my specific posts, or have messaged me. I’m not making a blanket statement

about the earths population, I’m stating that on those posts that I have written, and the responses that I personally received, I have always asked if any of those negative responders have ever operated a short term rental, or worked in Arbitrage, and to date, the answer has always been no. Cool story though bro.

Originally posted by @Ken Latchers:

this is illogical or nonsense

"not a single person that has had a negative reaction has ever tried to operate in this space. Lots of Nay sayers, but no one that's actually doing anything in the STR space."

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Ken, I’ll be honest with you, I’ve heard that same reaction and response from a lot of different people. I have no idea how you operate, or what your strategy is, but to date, not a single person that has had a negative reaction has ever tried to operate in this space. Lots of Nay sayers, but no one that’s actually doing anything in the STR space. When we landed our first Arbitrage triplex last year, there was a lot of negative reaction. Right now, we’ve bought a quadplex this month using some cash from our Arbitrage units, and next month I’m using 60k from the profits from that one Arbitrage deal to purchase a triplex (Closing on Jan 30th). Being “Stuck with all these leases” isn’t exactly a problem, there’s always an easy exit strategy of putting long term tenants in place, and we could actually still cash flow on most of our units. Real estate is all about the numbers, and when you let the data and numbers make the decisions for you, it’s not that hard to get it right. Are you using any data or numbers for your negative assessment, or just opinion. In terms of being grounded in reality, here are a few of our Arbitrage units that continue to make over $1000 net profit per month, per unit, over a year average.

https://www.airbnb.com/users/2...

Originally posted by @Ken Latchers:

better analysis: is this really a good idea? Am I relying on theory instead of cold reality? have i accounted for all the risk and all the expenses or am I missing out on a lot that I didn't even imagine?

since there's no backup plan in Arbitrage, what will I do if this whole thing fails miserably and I'm stuck with all these leases and risk bankruptcy?

Originally posted by @Tonya Slater:

@Clint Harris, where can I find this AirDNA Rentalizer analysis? I have narrowed down my locations and have scoped out some houses that I would like to lease and then airbnb then out.

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Hey Tonya, it’s right where it sounds. Go to AirDNA.co (not .com) and click on the menu, and then the Rentalizer. It will print you to input the address and the beds and baths. If you’ve picked your market, I highly recommend paying for a membership to really do a deep-dive into the data and figure out the highest and best allocation of your resources in your new market. Good luck!

Originally posted by @Tonya Slater:

@Clint Harris, where can I find this AirDNA Rentalizer analysis? I have narrowed down my locations and have scoped out some houses that I would like to lease and then airbnb then out.

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Go for it! It’s a great way to try STR and get started without making the commitment of purchasing. Once you know if you like it or not and have a chance to put your system together, you can transition out of Arbitrage, or for us, we have continued with Arbitrage, and have used the cash to purchase more units and move towards ownership and vertical integration. Biggest help I could offer would be to let the data steer you. Don’t guess if a property will perform, you can know by using the AirDNA Rentalizer analysis

Originally posted by @Jennie W.:

@Clint Harris thanks for your comments. My husband and I are interested in doing the same thing.

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We Arbitrage the same types of property that we like to purchase because one sometimes leads to the other. This 2/1.5 unit in a side-by-side duplex gives us the opportunity to pick up the second unit months later. Those two units combine for 94k in gross rents at a purchase price of what would be around 370k should the owner decide to sell to us. A 5 or 6 bedroom unit would run 600-800k, and do about half that or just over in gross rents.

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All Forum Posts by: Clint Harris

Clint Harris has started 35 posts and replied 186 times.

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