All Forum Posts by: Will G.

Thanks for the clarification.

Does anyone track vrbo data?

Tim, i am referring to air dna data which i believe uses rental data from all major sites. Have you looked at their data to see if close?

i would like to know how accurate as well and hopefully lucas can shed some light on that. I imagine those folks make their money on being close!

I can tell you after many years owning ,managing long term sfr's one should count on at least 35% of gross rents for expenses, as newbies often neglect to factor in consumption of roofs,mechanicals, flooring, cabinets etc. And i have heard all the arguments of sell before the major stuff needs replaced(and i have done that) but for a real, long term view, all these expenses need considered.

Short term then, in theory, MUST be higher expenses, so how much more is obviously slightly different on every rental but we need a ratio to go by(with a little margin) to assess deals.

Another concern of mine is, when is market saturation achieved?

Air dna says rental growth at 93% year over year and way up since 15.

And what happens to the millions of str's when the economy enters the next recession?

Anecdotally, i went to book an str in north florida and there were soooo many, i picked a perfectly fine 3/2

5 blocks from the beach for $45/nite! So how does that owner make any money? A quick check of the air bnb forums had many hosts complaining of saturation and super competative pricing. Might be that area only?

Check air dna for analytics, for sevierville, says 66% occupancy, which is 240 nights/year. 240 x 140 = $33,600 gross, minus expenses. Best you can count on for long term rentals is 35% for expenses, also the # banks use and a good estimate when considering all of the components actually consumed in a single family home.

Now since it is str add, management, water, elec, cable, internet,cleaning, etc.

I would think 50% of gross is totally fair and possibly a little low.....Lucas please chime in?

So $16,800 in net before debt service in your example 2/2 that rents for $140 night?

I also would consider that the rental rate would differ throughout the year.

30 year fixed mortgage

Seems no income verification loans are back!

Anyone get one recently?

What were the rates/terms?

what is the number of recent sales in that price range? None? Several in last few weeks? Drill down a bit, is it the market or the home itself?

A sense of urgency in your marketing might help, as it seems someone is going to get a tremendous value!

Can you refi, rent or sell your primary? Would you consider moving into the flip house?

Maybe put the address on here and let the community posit on what to do marketing wise?

GOOD QUESTION! anxious to see if someone has a surefire way to tell. What if you inform tenants that your insurance co requires all persons residing there to list make and model of  their cars. That way you know what vehicles are supposed to be there and can do drive by's to check. Or ask a neighbor to keep an eye out? 

Please, please don't do this! The shipping container "idea" should only be considered if you need to ship living quarters overseas or get it somewhere remote. Otherwise it is a terrible idea that only constrains the living space. I have built homes at nearly 3000 s.f. where the shell goes up in one day. It then takes 6 months detailing out the plumbing, electrical, hvac, interior walls and finish, cabinets, fixtures, flooring, paint etc.

The metal shell is a hindrance unless you really want to tow it around ...alot, as even some trailer rv's use wood framing.