All Forum Posts by: Account Closed

The best bang for your buck is a larger 4+ bedroom in rural places, by a lake or a park or in the mountains somewhere. 

Met with Tom from Airdna once pricing out some enterprise options and he told me the Rentalizer tab takes the 10-15 or so similar properties (beds and number it accommodates you enter) and mushes 'em all together. So I imagine it's pretty close, but I'd worry that also includes poorly managed properties. That is, it ignores whether they're 25th percentile, etc. Assuming you'll do half a decent job, you'll want to start looking at the 75th percentile for your bed and accommodates +/- 1 or 2 (depending on how many it returns) in the Revenue tab most likely. After a year you'll have your own, new targets based on your own performance.

I'd also caution you when going into Airbnb itself (rather than Airdna) that you're only looking at that season. And you're looking at what the people who haven't been booked yet are asking for. Airdna shows what it was booked for across the month and back in time, which is, I would argue, more important. Using just Airbnb also gets problematic depending on seasonality. If your low season is very low and you extrapolate, revenue comes out low, and vice versa during high season. Sometimes we don't have time to follow a market for an entire year to confirm seasonality.

Of course, to each their own.

We can't run numbers without the unlocked area of Kissimmee. But I'm wondering how you got to the revenue displayed (NOI)?

Also don't forget: those properties might be ones that they've owned for a long time, so their mortgage payment is lower etc. Or, they don't care if they break even because it's a vacation spot for them and they're just barely trying.

A buddy just bought his first STR in Sapphire and had great things to say about Ryan Howell. Ryan's apparently an investor himself with 20-something doors.

An LLC changes the way you operate with the bank (eg often a higher down payment). Some will recommend you always just keep it in your name if it's just you because it's easier and solely because of the "worse" LTV requirements. Others will recommend that you buy it in someone's name for lowest down payment, then transfer it to the LLC later if you talk to your accountant and lawyer and they say it's a good idea in your particular situation. If you search Bigger Pockets, it seems like nobody can agree on what you "should" do with this. So that's why I'd say check with your accountant (for tax benefits for you) and your lawyer (for asset protection options and because there's someone else involved). 

The loan would go under one of you (the bank doesn't care about much else). Then you can get a lawyer to make a JV agreement outlining everything. Who does what, who gets what percent of what, what happens if one of you fail to perform your side (and what the obligations even are), what happens if someone dies, etc. You simply need to talk to a real estate lawyer. Handshake deals of this size are a bad idea, even if you're best friends foreverrrrrr.

@Steven Skarupa At first, Airbnb will send a TON of traffic your way to test you. Make sure the photos are on point and everything is perfect. If you can get a really high conversion rate from absolute day 1 (which might require lowering the price a touch) Airbnb will see you as a winner and keep sending you traffic. If you don't pass the "test" they could let you start to slip in ratings. They make money when people book, so if you can "prove" you can make them money, you stay at the top.

This is probably related to the Enema Method @Paul Sandhu mentioned (I haven't researched it) but the Carls are solid advice givers all around so whatever they say is going to work too.

Yeah could be. Not a lot of extra conservative cushion in elec/water and is an estimate that assumes the occupancy rates shown. Maybe vacationers waste more than that! 
And no, sorry. I don't know a Dave Murphy out there. 

AllTheRooms is my personal favorite right now. You can export CSVs and play with the data on your own too if you like. But there's also graphs and lots of other things to explore about an area you buy.

Feel free to DM with questions on this if you like! I love this part of it.

There's quite a process with that area - certain rules, permissions, town council and zoning meetings, etc.

Feel free to DM me - I've got strong ties to the area and town board.