All Forum Posts by: Tara Faulks

Here it is.  This doesn’t include the PM fee of 27%, mortgage, insurance, etc...  my realtor said my gas seemed high.  This was derived from talking to local PM company’s, my realtor, talking to sellers and an online expense sheet for a mutual family.  I put a range in because it depends on location, size of property, age of property, etc...

I am currently looking for a STR in Palm Springs and really trying to nail down expenses. I use Mashvisor and have spoken to some local property managers to understand income. The income is solid despite restrictions but the expenses are high and varied so i am struggling to understand a true cash flow and ROI. From what i have learned, gas (pool heating) and electric (summer air at full blast) will probably be more. Summer months tend to be close to $700/day from what i hear and heating the pool in the winter months is $75-$150/day. Many of these costs are often offset and paid as part of the rental fees. Interested to see others experience in these areas.

I purchased a STR with some personal use intent about a year ago. Although it is an off year, i learned alot about STR's and have years of income on our unit. Happy to share some knowledge and answer questions. In short, due to restrictions on rentals during COVID we will have negative cash flow this year. In normal times we project to break even but that's with 30 days owner use (none on prime weekends). Mammoth historically doesn't promise great COC return as a sole rental property (just over 1% i believe). My next property is for investment purposes only and I wouldn't choose Mammoth. But if you will use it yourself as well, with it costing nothing, and other people pay down your mortgage, that't a great deal and how we look at this property.