All Forum Posts by: Ryan Moyer

This is the weirdest comment I've ever seen.  Serious question, did you start investing in the markets like 3 months ago?  Because this "crash" isn't even a blip on the radar of stock market crashes.  The market crashed 28% in 2018, 31% in 2020, and 21% in 2021.  Not to mention 2008 and 2001 which were much larger than any of those.

Sorry not trying to disparage, just having a good laugh as a guy that lives and breathes in the stock market.  This isn't even something worth getting out of bed for yet.  We are like 6% off of all-time highs right now, lol.

This comment is like a football team giving up a field goal on the opening drive and saying "boy, we're really getting crushed, I'm not sure it can get any worse than this!".

Nope.

This is one of the ways many management companies hold you hostage.

Huh?  He was answering a question on what his rates were.  PM rates are based on gross revenue, not net revenue.

In general though, people typically talk about gross revenue because you can underwrite based off gross revenue, not net, since expenses (and especially debt service) are going to be very different from owner to owner.

I don't think Bill has any on 30A.  He has several in Gulf Shores.  Of course his property also ranks #1 on Airbnb in that area so his returns are better than most.

I thought you self managed?

What does that PM charge and what is their role?

Either that PM is charging more on the front-end to make up for not having to charge for things like that, or they don't value their time and they are going to burn themselves out.  Or you've found yourself a unicorn and I hope you buy them one hell of a Christmas present every year!

The 1% rule is more of a LTR rental rule, if you're talking about monthly rental income vs. PP. I would be shooting for higher for an STR as operating expenses are significantly higher.

 Yes we still have our place in Kanab.  It definitely has slowed down as I predicted above as the post-covid travel boom has worn off in the area (Zion was a big drive-to destination when flying was difficult).  We still cash flow nicely every month but our mortgage is 500k at 2.75% and the same home right now would probably cost 800k at 7% so the numbers would likely be much more difficult at current prices/rates.

Instacart is so much more reliable than Walmart+.  I have subscriptions to both but W+ could not have a worse design if they tried.  Too many frustrations to type out right now because I don't want to get riled up before bed, lol.

VRBO fees and taxes are charged on all revenue including the host fees, so it's not a way to "get around" any of that.

Those are usually fixed costs (cleaning fee, etc) that don't scale with length of stay which can make staying at an STR (particularly on VRBO which tend to be larger places on average) difficult for a very short stay. Just the nature of the business and not having the scalability of hundreds of small rooms with $7/hr cleaners that can blast through them like a hotel has.

 Unfortunately no easy answer here as this is going to be highly dependent on average length of stay and seasonality of the market.

For instance in a beach market that does primarily week-long stays in the summer to generate its revenue and is mostly empty other than that, there may only be 12-15 cleans all year and hence it's going to be a very small percentage.

Whereas in a year-round market of a smaller home where you get lots of shorter bookings to fill out the calendar, it could represent a much larger percentage.

One thing you can do is look at ADR and Occupancy percentage.  That should come out lower than total revenue since it is not factoring in cleaning fees, though I believe you get much more generalized data on ADR and can't drill down as much.