All Forum Posts by: Brian Hatcher

@John K. Please reach out to me, I would be happy to help!

Pro - extremely low cost of living, sometimes none!

Con - sharing your house, which really isn't much of a con since the pro is so high. 

I see House Hacking a temporary thing, so if you can endure having a shared space to eliminate your housing expense for a while, you can position yourself for a lot of success later on.

@Milan Dixon awesome, I’ll keep you in mind!

@Michael Baum I use AirDNA for comps, it typically serves as a good gauge as to how well a property can perform in a market based on the performance of similar properties within a nearby distance.

For example if a 2-2 condo in your area is grossing 35k average (some more some less) based on the revenue from the last 12 months, taking a look at most of the comps, comparing amenities, fixtures, finishes to your property can give you a pretty solid ballpark of the returns you could make.

The full version of AirDNA also gives you links to the direct listings of these comps on both Airbnb and VRBO so it’s fairly easy to see what your top performing competitors look like in the market.

@Michael Baum I understand your personal experience may be where your information is coming from, however I nor any STR manager operator I have run across charge a 40% management fee. That is pretty ridiculous and it would be hard to be profitable at that amount. I as well as many other managers in my network charge around 20-25% at max.

When it comes to AirDNA I have been able to cross check a listed property from the owner to the revenue on they have listed on AirDNA and it matched their last 12 months. So in my experience the data is reliable.

I agree with much of what you said, it comes down to due diligence as with ANY investment, I just wanted to point out that it is possible and can be very profitable to own a vacation rental STR which is what the original post was asking.

@David Goldenberg vacation rentals bring great returns even with a 20-30% management fee. For those that don't have access to real revenue data through a system like AirDNA they may find it hard to believe but it's possible to gross 60k+ on an STR In a 12 month period when ran by a solid management team.

Even with a 20% management fee and a 15% expense rate you’re looking at ~40k in net profit once the property is on autopilot. Your LTR would need to rent for 3300 a month at minimum to give you the same returns.

It’s all about due diligence, and understanding your market. In mountain towns, beach areas, and domestic destination areas it’s very possible to do more. 

@Jiali Yin I am a current investor in the ATL area, I would love to connect and see if I can provide help in any way.

@Annie Weeks reach out to me and I can run an analysis for you on occupancy and average daily rate in your area over the last 12 months.

@Luke Carl while vacation areas might have some of the highest returns, metropolitan areas can also provide these returns depending on the guests you’re looking to serve and what you have in your metropolitan area.

STRs near a military base, major airport or hospital also perform very well even in metropolitan areas. Even ones in suburbs just outside of a metropolitan area where other STR inventory isn't in abundance.

@Rafael Ramon good to know. I’m located in the east Atlanta area right next to the golf course. Currently in the process of converting all my units to STRs as well as looking to add more to the portfolio in addition to managing others.