All Forum Posts by: Kash Jawed

This thread came up on Facebook in regard to Short Term Rentals (STR):

"What do you all do about your cleaners? Most don’t understand or want to do the short term rental stuff."

My response was:

"When hiring, look for those who have worked in hotels / motels before. They understand the job and the business."

Hope this can help ...

I'm pretty sure that sites like Airdna will help you do this. 

I personally take a more manual approach. Start with estimated earnings based on comps in the area (cost & occupancy), then reduce the projections by about 10-15%. 

From there you should have your EBITDA/ gross. Now start to deduct your expenses:

- Mortgage (PITI)
- HOA
- Water, Trash, Gas/ Electric
- Cable TV/ Internet
- Supplies (toilet paper, coffee/ filters, paper towels, etc.)
- Maintenance/ repairs
- Landscaping
- Cleaning fees
- Management fees
- etc. 

Be sure to add some padding, because there are likely some expenses that you won't predict. 

From there, deduct your expenses from your gross revenue. That should give you a somewhat reasonable expectation of what you can expect. 

Also, don't forget capital expenditures such as painting the home, appliances, initial repairs, etc. Lastly, a big one that I grossly miscalculated on my last STR was cost to furnish/ decorate. Cost for furniture, TVs, beds, decor, etc., has increased substantially. Make sure you budget plenty for those items. I estimated about 10k to furnish/ decorate my place and I was well over 20k when complete.

I personally want to see at least 20% COC on STR, but preferably upwards of 30%.

I'm building a tool for exactly this! Shoot me a DM with where you're looking and I'll send you some screenshots :)

Hey!

If I'm investing out of state, or somewhere I've never been in person before,

Is there some way to figure out if I'm buying in a good or bad part of the city?

I could check google street view, but is there a way I could quantify this in some sort of way to be able to compare apples to apples?

I'm curious to see what some of the solutions are!

Cheers,

@Gurjot Grewal

Stay away from Amy Beliveau. She fancies herself a brrrr JV expert and is far from. Doesn't budget for tax increases from extensive renovation like adding a legal suite. Doesn't budget for management. Uses rent from illegal units for projections. And doesn't actually understand the difference between illegal and non-conforming. Another insta-agent clueless on execution. / end rant

 Thank you. That is awesome! I am a bit jealous :D. If this was a few years ago I would easily buy here but I just don't think it's affordable for me at the moment as somewhere like texas. I was hoping someone could chime in on the tax implications but I am still doing my research on the side.