All Forum Posts by: K F.

@Ken Boone interesting, maybe I should consider it, because it would make a big difference in cash flow. Thanks again.

@Bruce Woodruff good to know thank you!

@Kirsten F. Just to give people an idea of the property I’m thinking about:

purchase price would be 250k,

avg. daily rate is about $250,

occupancy rate 45%,

property management 20%,

then calculate another 10% for maintenance, mortgage about 19k/yr, and I’m leaving out other costs like furniture and other possible operating expenses...

@Bruce Woodruff thanks for your input. I use AirDNA to look at properties and also use their calculator to get a general idea. If it looks good I’ll run numbers in my own too.

@Ken Boone thanks for your reply. I knew I would get this answer, but I want to make sure we’re not being too picky and missing out on good investments. Of course the more cash flow the better.

We have considered managing ourselves, but we would live 2.5 hours from where we are looking and driving that weekly more than a couple times will get exhausting.

If you have purchased an STR in the past couple years (2020, 2021), how much cash flow are you making yearly? We are searching to invest in a short term rental, but the numbers are not high enough for us. We're seeing about 10K-15K yearly cash flow after running all the numbers at a safe occupancy rate (could be more but we calculate with the lowest numbers). We would use a property management company, it would be too difficult for us to manage it ourselves. This eats up a lot of cash flow.

Is this "good" cash flow? We were aiming for more around 30K per year, but maybe that's unrealistic. Would love everyone's thoughts.

Some good ideas here, thanks guys. We're going to try to find a property that cash flows enough to pay off our loan (and more hopefully) and in the end we will at least have a property from that money instead of nothing. If we make enough money in a couple years we can always just pay it off too. Hoping that is the case! 

@Karla Simmons true! Thanks!

@Theresa Harris I think my student loans are 2.5 or 2.75 and our car is only 1.75 so it’s very low. All the debt is under my name so my husband makes all the purchases for our properties.

Hello All,

I know this is a very common question, but I'm curious what people will say. We recently sold a duplex that was no longer a good investment and made about 160K off of it. I still have about 50K in student debt and 15K in a car loan. Sometimes I want to just pay off those debts and and invest the rest, and other times I think it's better to just invest all of it and make more money with that money. So I'm wondering, what would you do? We are realtors just starting out and would like to invest in short term and long term rentals. Deals are pretty hard to come by these days, but we're hoping that will change soon before the value of our money decreases with inflation. Thanks for your feedback in advance!