All Forum Posts by: Samir Solanki

@William Brock

Thanks for all the info. I’m under a contract for a property out in Canyon Lake, mind if I shoot you a message to ask some questions?

Hoping I can get some wisdom from all the STR gurus. Here are the options I have.

Option 1:

Purchase price $201K

2 bed/ 1 bath

Conservative daily rate $200/night

Conservative occupancy 35% (annually)

Net cash flow monthly $250 (conservative)

Actual estimate through AirDna $338/nightly and 49% annual occupancy. I like to be conservative, though.

Initial investment $25K (10% down and closing)

Additional cash $10K (furniture and decorations)

Total cash investment $35K

Property is renovated and not much needs to be done.

Option 2:

Purchase price $305K

3 bed/3 bath

Conservative daily rate $325/night

Conservative occupancy 35%

Net cash flow monthly $400/month

Actual estimate through AirDna $450/nightly and 49% occupancy annually.

Initial investment $37K (10% down and closing)

Additional cash $15K (furniture and decorations)

Total cash investment $52K

Property needs work. It is rentable as-is, but to get top dollar it needs about $50K worth of work. Once work is done it could bring in between $550-$650/night.

@Paige Hutchinson I'm working with a mortgage company that I've done several loans through. Options are to put as low as 5% down since my family will be occupying the property from time to time as a second/vacation home. I may opt not to pay PMI, but we'll see.

@Michael Baum I’m really grateful for folks like you on this forum. Thank you for the fantastic advice. I have been thinking about automated locks and thermostat, amongst other things. I have a cleaner lined up and am working on a handyman. Now I’m hoping the seller accepts the offer. If you ever need any help out in the Houston area please don’t hesitate to give me a shout. I have a few long-term rentals in the area.

@Michael Baum yea I’ve never managed or owned an Airbnb before. I hear it’s not too bad. Have you had experience with this? I live about three hours away from this property.

@John Underwood the idea was to have this as a family vacation home that pays for itself. Thanks for the Feedback. I think this might work out.

Wanted to run some numbers by the vacation rental gurus on this site. What are your thoughts?

I’m looking at a potential vacation rental property and would like to see if this is a good deal. It has been challenging finding guidance on how to appropriately value these types of properties. Maybe I’m not looking in the right place?

Purchase price: $201,000

If this were a long term rental then monthly rent would be $1,200 (terrible, I know)

However, as a vacation rental it would bring in around $2,700/month based on the average occupancy and nightly rates in that area.

Assuming 20% for management

10% for maintenance

Roughly $400/month for utilities/internet/entertainment (Netflix, Hulu)

This brings the net to $1,490/month.

Minus mortgage, taxes and insurance of $1,250 (I’m doing 10% down)

My net income monthly would be around $240.

I am overestimating insurance and taxes.

I would purchase this as a second home so the interest rate with no points would be 2.875. My family will be using it on and off throughout the year. Possibly 2 weeks out of the year at the most.

@Braden Moojalsky apologies for the lateness of my reply.

We had some cash saved up for the first purchase so we used our own money. If I had to do it again, I'd probably do a HELOC on my personal residence and would've used that cash instead.

 Hey, Sam. I've been focusing on finding properties close to downtown Houston. Anything less than a 10 minute drive from downtown. 

 Hey, Jayrald. Believe it or not I drove around areas close to downtown Houston that had a lot of construction and rehab projects going on. I got out of the car and spoke with multiple contractors and looked at their work first hand. I got a few names and asked them to bid my projects and that's how I found my contractors. Not the ideal way of doing it, but again I didn't know anyone in the business so I had to start somewhere. 

As far as management is concerned I have the triplex being managed by someone else for a very reasonable price. I'm managing the single family home myself to see how it goes.