All Forum Posts by: Dev Paul

@Mike V.- Great insight! I tend to feel that's true in every aspect of life, sometimes its harder to break in but in the long run that investment makes sense. Since you are from CA, any areas you might wanna suggest for the kind of model you are proposing? I can go up until 400k I think and wont mind getting a decent property on the beach somewhere in southern california. I have enough for down payment and credit score is pretty good too, but some of the traditional morgrage lenders look for past 2 years of income for self employed people-my 2017 was good but 2016 was low as i turned self employed during the middle of that year. If they only look at 2017, i can get to 400-500k pretty easily.

@Luke Carl - Thanks for your input. Yes, your area seems pretty promising but i have to look at other factors too. How can I start my research for the right kind of properties in Gatlinburg PG area? I saw a website which specifically sells cabins in that area..is that something you will recommend? Btw, I had PMed you earlier, not sure you got my message.

@Bruno C. . Thanks so much for your good wishes. So if I increase my budget to around 400k or so, do you think LA/NYC could work? Because when i look at those markets, for that kind of budget it seems airbnb cash flow returns are not that great and most properties are out of reach anyways.

Thanks. So what should be an ideal coc?

@Bruno C. Thanks a lot for your input. I looked at your profile and I believe you are talking about the last property in Boston with year noi around 37500? To answer your question- at present im looking for atleast 2.5 k monthly income from my potential airbnb business with a very good shot at increasing that income to the numbers you mention (6-10k) in the long run (2-3 years from now). I own a consulting company and i already make more than my long term airbnb goal income. But, I dont have time (60-70 hr/week plus high stress) to pursue other vocation (Im an independent filmmaker) which currently/in the near future wont provide any livable income. I can see that airbnb or property management business might make far less money than my current consulting but eventually it will also give me more flexible lifestyle and shot at pursuing my passion seriously with more chances of success in my filmmaking career. So, to start with, even if i can make 2.5 k income, that will barely provide me livable income, i will be fine as i will also buy lot of time. Im providing this info so that you can see where im coming from and what im looking to achieve. Im perhaps looking to start with one property (250-350k max) in any of the high potential areas (which also have low cost of living so that my 2.5k income model works as I will move to that place) and manage the property myself. In terms of preference, ofcourse closer to LA or NYC is great but if that's not possible, then will any day prefer cooler places -including mountains- than hot and humid florida. But again, most important thing is strong cash flow and long term potential- so will go anywhere in the country..

@Julie McCoy Thanks for your input. If you read my reply to Bruno above, you will exactly understand what my goals are. And, good to meet someone here who is in TV production. :)

@Account Closed Thanks for your reply. Yes, agree completely with what you wrote and congrats for your first VR. I can perhaps afford up until 500k but wont jump into so big right away as i hardly understand this business. I will happily take 25-30k yearly income on my first property as long as it does not cost more than 250-275k. Yes, you are right there are few expenses i did not mention, but that was just the point i was trying to make. I did consider house taxes and insurance though. Im not really sure what you mean by cap-ex reserves. May I ask where did you purchase your VR and what are good candidate places according to your research?

One other thing I forgot to mention earlier is that its not that i will completely chuck my consulting career, its just that the goal is to not fully dependent on that and so in the worst case scenario, i can live with just airbnb income. Ideally, I will still do it-but less hours and more remote work.

While doing my research and talking to people, its still hard to gauge the true numbers. My personal opinion (based on very limited knowledge) is that if one is not making atleast 2-3k per month net income while self managing a property(ies), I dont see much point of doing it as a full time gig. So, for example, lets say your 1 bd 1 bath apartment in Panama city beach or Nashville  costs 150 k and your monthly mortgage plus taxes and hoa fees etc is around 700-800 dollars (assuming 20% down payment). Plus, add another 500 dollars of cleaning, maintenance and rental taxes etc.  Now unless average nightly rate on it is 125-150 dollars, and occupancy rate is atleast 60-70%, its not going to be worth it. Ofcourse if you have 5 such apts, it will then be fine with even less nightly rates and limited occupancy. 

So I just wanted to throw this question out to see what im missing here and if some of you guys agree with my hypothesis above? And which places do you think are good candidates for these kind of numbers? 

Thanks Sandra. I will PM you.

When I check CL Beach on airbnb, there are so many properties listed. So, that means they are mostly doing it illegally ? What am I missing here? It seems to me that more one researches, more issues one finds.  

Thanks for your note. Well, that's a surprise because from what I have been reading PCB seems like a real winner. The rented.com ceo speaks a lot about this location and how you cannot go wrong with this location. What do you mean that condos are not warrantable and what about houses? I have no real location issue, I will go wherever it has best potential and ROI within my budget. Currently im looking at both palm springs and PCB and latter seemed like a better option with less rules.

I would still like to hear from anyone who has things going on at either PCB or Destin or even clearwater beach.

Hi Folks,

Anyone here owning a  vacationproperty in Panama city beach, Florida and want to share their experiences and advice on good brokers in the area? Im looking to buy a beach side condo/vacation home purely from an airbnb standpoint. I will manage it myself. Budget -up until 300k- can buy two condos or a medium size home. Thanks in advance.

Thanks for the tip. I checked and yes it seems they are going to start the operations in late 2019. I believe the key is to identify such markets where there is potential but the market is not fully saturated yet. Appreciate your wisdom. If you have to start today and have the budget and goals like mine, which place would you start with? 

No sir, I didnt mean that. What I meant was that i want to invest in the best location or city possible. It doesnt matter if that city or town is closer to my convenience or in another part of the country.