All Forum Posts by: Sara Levy-Lambert

1. Affordability: Make sure that you can afford the rent payments and the additional amounts that will go towards the down payment each month. It's important to be realistic about your budget and make sure that you won't be stretched too thin financially.
2. Length of the lease: A two-year lease is a fairly long commitment, especially if you're just starting out in the short-term rental business. Make sure you feel comfortable with the length of the lease and that you're confident you can generate enough income from the property to cover the rent and down payment payments.
3. Terms of the contract: Make sure you fully understand the terms of the rent-to-own agreement, including any penalties for breaking the lease early or missing rent payments. You should also have a clear understanding of the purchase price and any contingencies or conditions that must be met in order to complete the sale.
4. Condition of the property: It's important to thoroughly inspect the property to ensure that it is in good condition and that any necessary repairs or renovations have been made. You don't want to be stuck with unexpected repair costs down the line.
   Accurate income: Look up the awning airbnb estimator and plug in the address to get an understanding of the comps and potential income.

It may be helpful to speak with an attorney or financial professional to understand the pros and cons of different options and determine the best course of action for your situation.

It's important to have insurance coverage when you are renting out your property on a short-term rental platform like Airbnb. Traditional home insurance policies may not provide sufficient coverage for the unique risks associated with short-term rentals, such as an increased number of people coming and going and a higher likelihood of wear and tear on the property.

There are a few options you can consider to ensure that your property is adequately protected while it is being rented out on a short-term basis.

One option is to purchase a host protection insurance policy, which is specifically designed for short-term rentals. These policies typically provide coverage for damages to the property and liability protection for the host in the event of an injury or accident.

Another option is to purchase a commercial insurance policy, which is designed for businesses and can provide more comprehensive coverage than a traditional home insurance policy.

It's also worth checking with your current home insurance provider to see if they offer endorsements or riders that can be added to your existing policy to provide coverage for short-term rentals.

Regardless of which insurance option you choose, it's important to thoroughly review the policy and make sure it meets your needs and provides the level of coverage you need.

take a look at awning airbnb property management, they work nationwide, have multiple properties in gatlinburg and rates start at 15% of revenue

Take a look at comparable Airbnb's on the market - just google Awning airbnb estimator for a free tool. 

Then take the annual take and subtract a property management fee of 15%, that should be your annual income. Otherwise you're better off just getting a property manager and making it an Airbnb yourself.

It sounds like you've done a thorough analysis of the financials of this investment opportunity, and it appears that it has the potential to generate a good return on investment based on the estimated rental income and expenses. However, there are a few other factors to consider when evaluating the risk of this investment:

1. Market risk: Real estate markets can fluctuate, and it's important to consider the potential for changes in demand for rentals in your area. If demand decreases, it could affect your rental income and potentially make it more difficult to sell the property in the future.
2. Vacancy risk: It's possible that you may experience periods of vacancy, which could impact your cash flow. Be sure to factor in a vacancy rate in your financial analysis to account for this risk.
3. Maintenance and repair costs: While it's good that the HOA covers some maintenance and repair costs, you should still be prepared for unexpected expenses that may arise. Make sure you have a reserve fund set aside to cover these types of costs.

Overall, it seems like this could be a good investment opportunity, but it's important to carefully consider the risks and be prepared for the possibility of unexpected costs or changes in the market.

It's great that you're thinking about investing in real estate and have a specific goal in mind! Here are a few suggestions for how you can prepare for your investment over the next year:

1. Educate yourself: There is a lot to learn about real estate investing, and it's important to do your due diligence before diving in. Consider taking a course or reading books or articles about real estate investing to get a better understanding of the market, financing options, and other important factors.
2. Set a budget: Determine how much you can afford to invest in a quadplex and how much you'll need to borrow in order to make the purchase. This will help you narrow down your search and identify properties that are within your price range.
3. Research the market: Take some time to research the real estate market in Florida, including trends, demand, and potential rental income. This will help you understand the potential return on your investment and whether it makes sense for your financial goals.
4. Find a good real estate agent: A good real estate agent will be able to help you navigate the market and find properties that meet your criteria. They can also provide valuable guidance and support throughout the buying process. (DM me and I can make an introduction to someone amazing!)

As for specific locations to consider, it's a good idea to focus on areas with strong demand for rentals, such as those near universities, hospitals, or other major employers. You may also want to consider areas with a high concentration of vacation rentals, as these can be lucrative options for short-term rentals. Ultimately, the best location for you will depend on your specific goals and budget.

a quick google search of the top airbnb management companies brings up Awning, Vacasa, and Evolve. I would recommend looking into those companies

It sounds like you're in a difficult situation, as your high debt-to-income (DTI) ratio is making it difficult to qualify for conventional financing for your property in Vermont. In this situation, it may be helpful to explore alternative financing options, such as a loan from a private lender or a portfolio loan from a local bank or credit union.

To calculate the average daily rate (ADR) for a property with multiple units, you would first need to determine the total revenue generated from the property over a given period of time. This would include all rental income from the units, as well as any additional income sources such as parking or laundry fees.

Once you have the total revenue, you would then divide that number by the total number of rental days for the units during the same period of time. This will give you the ADR for the property.

To calculate the occupancy rate for the property, you would first need to determine the total number of rental days for the units over a given period of time. You can then divide the total number of rental days by the total number of potential rental days for the units during the same period of time. This will give you the occupancy rate for the property as a percentage.

It's important to note that the ADR and occupancy rate for a property can fluctuate over time and may not be the same for every period of time you evaluate. It's also worth mentioning that these calculations are based on the gross revenue and rental days for the units, and do not take into account any expenses associated with managing and maintaining the property. You may want to consider these expenses and how they will impact the property's profitability before making a decision to purchase.

google awning airbnb estimator to get some of these figures for your address