All Forum Posts by: Account Closed

Looks like another tool that in the right hands, used the right way might have some kind of value- and will otherwise largely mislead inexperienced, hopeful would be investors. 

 Then what you are saying is there are no deals worth pursuing in that market. Which is true if they all come with negative cashflow. 

Any. The idea that rental property isn't supposed to generate immediate income is outrageous, wasn't acceptable the way it is now in the past, and only exists because people keep trying to hump the over inflated property value bubble. 

Capex and maintanence for one.

I've heard for decades growing up that expenses are the most common thing screwed up by investors/landlords. Screwed up as in, underestimated.

 Where exactly do you source these off market deals?

So, I'm certainly not a power user or expert on AirDNA- but, when I pick a location and it's telling me what the daily rate is, and I go to AirBnB and look up what is really being listed in the area, AirDNA is just way off. AirDNA is projecting way to high of daily rates, from what I'm seeing.

I'll give you an example. San Pedro CA. AirDNA would have you has $238 as the daily rate. AirBnB tells a different story. As in, $100 a night less different. 

If what is't doing is simply averaging out all the listings, thats about as usefull as telling me the average income of people at a wedding that included Waren Buffet as a guest. 

So my question- how useful is the rest of the data it's supposedly gathering? 

Asking because I'm hearing more an more people relying on AirDNA data for purchasing. And they don't seem to be asking these questions. 

 I think we might have different definitions of class B. Parts of Royal Oak are class B to me. Parts of Birmingham and Bloomfield Hills class A.

Redford... no way in hell. No offense to anyone. 

 If I say in public which areas are lousy, I'm going to offend the crap out of a lot of people. Let just say, the suburbs surrounding metro detroit have a few pockets where you'd want to live, raise kids, ect. A lot of the rest, you feel like you need to take a bath just from driving through. 

 I'm all ears if someone can show me at least 6% cash flow, starting in the first year, in a B class or better property, in a quality area.

I've seen people around me do better than 6% in the first year, and I've seen people buy quality properties and quality areas- I just haven't seen a single person do both things at the same time in the last 5 years. 

edit: (I've seen someone lieing, until I got into her numbers and saw the truth myself :) )

Total Monthly Cashflow using 50% Rule: -$206    That number looks about right.

The rest of it, the upside speculation projecting into the future, is only that. Speculation. 

What you know for real is that you will be out of pocket every month when you average out all the expenses over time. For who knows how long until you can bump up the rents.