All Forum Posts by: Dan Porter

Would recommend keeping it if you are still cash flow positive. Is there anything you'd be able to buy with that $100k of equity that could net you a better return than this property? 

If you want to chat more about Airbnb potential, shoot me a message. Happy to help with the analysis & I have lots of connections in the short term rental property management space!

John has a good suggestion renting it by the room if it is in a high demand college location. I would advise against selling the property because there are other ways to unlock the equity without having to sell a revenue generating house and losing some of that equity to transaction friction (closing costs, commissions etc.)
the accuracy of STR rent estimators vary by locations. Try googling for "enemy method" which is another way of verifying STR revenue estimates.
Also, See if you can get a HELOC before moving out of the property. It is much easier to get a HELOC on a primary residence than if you do not live in it.

Dan,

You need to do your market research. What does growth in the area look like? How many houses are similar to yours? If doing STR, how many other STR options are there and what is the general price point for nightly rentals? What's the municipalities views on STR's? What is the general condition of the home (a new roof, A/C, etc) can wipe out a lot of profits in the short term.

To answer your question…it really depends on a number of factors you need to work through. 

Definitely. I'm a realtor and I get 2 free personal deals a year where I take a full commision I can roll into a downpayment a year. So FHA I'm only paying .5% to acquire the house. So I could buy 1-2 a year but that's a lot of moving. I was gonna do one house a year and buy something turn key - I don't like doing the work while living in it. Is this a good strategy? I feel like one house a year is not enough