All Forum Posts by: Dan Edwards

@Dawn Vu thanks Dawn, I sent you a response to your PM did you receive it? It was the first one I have sent and tbh not sure if I did it right. 

Thanks Denise that is helpful. A couple questions regarding your gross of 80k for the year, is that typical of the Lake Arrowhead area or is yours an over performer, large/luxury or anything special about it? How long did it take to get to those levels/has it always been that high? Also do you think your property management company plays a big role in the high bookings that it makes it worth it to pay them whatever % they are charging? From what I have seen so far 80k/year doesn't seem very likely in Big Bear (at least not in the size/price point i am looking at) so curious about yours since Lake Arrowhead isn't too far away. 

@Joey Morea- One of the deals I am looking at comes fully furnished and comes with their existing Airbnb page (decent amount of reviews and superhost), they are currently doing a little over 40k gross, but my understanding is the 40k includes the cleaning fees that they collected and the total for the cleaning for the year for them was around 8k, so their gross is 32k once the cleaning fees come out. So if I took the cleaning out of my expenses then the annual breakeven would be in the $38-42k range. 

AirDNA has the two places I am currently looking at grossing an estimated 42 and 45k. I am also chatting with an existing host in Big Bear who is giving me some good info, I dont have his gross number yet though. 

Overall from what I have found in my research (and unless my expense #s are way off, which I dont think they are going to be that off to make a meaningful difference), unless you REALLY hustle or get a steal of a deal on the property, its hard to cash flow and it would really be a renter subsidized vacation home either covering all the expenses or coming close, with the potential for appreciation upside long term. At the end of the day I think I just need to decide if its worth it to me to tie up 40k+ in capital to have a "free" vacation home (although it would be a lot of work to self manage) with the possibility of making money off a future sale or put my money elsewhere. 

I have not gotten that far in securing financing I am first trying to see if the numbers make sense from an expense/revenue perspective with the assumption I will get 10%, my lender on the last few deals I was looking at not too long ago earlier in the year was able to do 10% so I am assuming I will be able to but fair point I should double check as that will be a big factor in the amount of cash I need to lay out. 

@John Underwood yes the internet and water are probably high (my internet in LA is $60/month), I was trying to be conservative. As far as furnishings, one of my assumptions was it was fully furnished already (the deals I am looking at are) so that would be covered but might spend a little but on some different furnishings. 

@Paul Sandhu thanks for the input on the electricity, I will adjust that- what would you say is average for electricity? To your point the difference in the electricity being estimated too low and the water/internet being too high will probably net out overall. 

Hi Everyone- relatively new Bigger Pockets member here. I am considering purchasing in Big Bear Lake to use as a vacation property 3-4x per year (I live in LA) and to Air BNB the rest of the time. I am currently looking at a few deals and am trying to figure out what my breakeven revenue would need to be, but, I am generally guessing on a lot of the numbers and was hoping there may be someone on here with experience in Big Bear who can take a look at/comment on my numbers. I have searched other topics on Big Bear and haven't found anything yet.

Assumptions: $325-350k purchase price, 10% down. No third party property management fees included in current analysis. Assumes comes fully furnished, if not then would add another 10k or so into first year.

• Mortgage: 2k/month; $24k per year, includes insurance, principal/interest and property taxes.
• Electricity: $100/month; $1200 per year
• Gas: $200/month; 2k/year
• Internet: $100/month; 1200/year
• Water: $100/month; 1200/year
• Snow removal: $500/year
• Repairs: $200/month; 2000/year
• Supplies: $2k/year
• Cleaning: $8-10k/year

Total annual expense: $43k

+ local transient tax of 11%, likely around $5/year (on 45k/year revenue)

Based on my numbers it looks like the breakeven would be around 48-50k in revenue when factor in the 11% transient tax, and then would go up 20-30% if needed third party property management. Anything I am missing or that seems way off?

Hi Everyone- relatively new Bigger Pockets member here. I am considering purchasing in Big Bear Lake to use as a vacation property 3-4x per year (I live in LA) and to Air BNB the rest of the time. I am currently looking at a few deals and am trying to figure out what my breakeven revenue would need to be, but, I am generally guessing on a lot of the numbers and was hoping there may be someone on here with experience in Big Bear who can take a look at/comment on my numbers. I have searched other topics on Big Bear and haven't found anything yet. 

Assumptions: $325-350k purchase price, 10% down. No third party property management fees included in current analysis. Assumes comes fully furnished, if not then would add another 10k or so into first year. 

• Mortgage: 2k/month; $24k per year, includes insurance, principal/interest and property taxes.
• Electricity: $100/month; $1200 per year
• Gas: $200/month; 2k/year
• Internet: $100/month; 1200/year
• Water: $100/month; 1200/year
• Snow removal: $500/year
• Repairs: $200/month; 2000/year
• Supplies: $2k/year
• Cleaning: $8-10k/year

Total annual expense: $43k

+ local transient tax of 11%, likely around $5/year (on 45k/year revenue)

Based on my numbers it looks like the breakeven would be around 48-50k in revenue when factor in the 11% transient tax, and then would go up 20-30% if needed third party property management. Anything I am missing or that seems way off?