All Forum Posts by: Suman Nandi

Quote from @Kyle Fitch:

@Suman Nandi

It seems that you are just talking about cashflow though. Wouldn't we have to consider the loan pay down and appreciation of your properties over time as well? This would all be included on your ROI.

I said real estate is 4X leveraged investment (assuming a down payment of 25%).
So if the property gives 6% annualized over 30 year. It's effective rate is 24%. 
This is true if the rent pays for maintenance, taxes & Interest.
If the rent pays for maintenance, taxes, interest and some part of mortgage then it's better than 24%.
If the rent pays for maintenance, taxes and you have to pay for mortgage and interest the return will be close to 6%.
Property taxes and Maintenance are not fixed cost they increase with time like rent. So In my calculations I expect all three to rise.

I think we were saying the same thing. We have to include everything to calculate the ROI

My 2 cents. Don't do real estate over the Stock market. Instead, diversify. Instead of 100% stock may be put 20% in real estate.
As everyone correctly says Real estate is 4X leveraged return but you pay 5% per year to stay invested. (My market has 2.5% property tax and I am assuming 2.5% for maintenance) and a 6+% APY for an investment property. If you run the number most of the properties are not going to beat the S&P500 return in the next 30 years. Please run the numbers yourself before deciding to invest. If your estimated rent from a property pays off the Mortgage + Maintenance + Property Tax + Insurance. It is a good deal.

Quote from @John Underwood:

Better than Airdna use the Enemy Method. 

Agree. I like the Enemy Method. But, I need an estimate for the whole year. Data with an average of Peak and Slow Seasons. The enemy method feels like is more for the current state of the market. Am I making sense?

Hi Everyone,

I recently moved to San Antonio and am in the process of purchasing an investment property to rent as a short-term rental. I’d appreciate some feedback on my current approach and advice if any.

Here’s what I’ve done so far:

Pre-Approval: I’ve secured a pre-approval amount and interest rate from an online mortgage lender.
Property Analysis: I’m using the mortgage and STR calculators from BiggerPockets to assess the financials for potential properties.
Neighborhood Research: I’ve been exploring different neighborhoods using Niche to get insights into schools, safety, and livability.
AirDNA: I’m considering subscribing to AirDNA for data on occupancy rates and rental income estimates.

Questions:

Is AirDNA worth the investment for STR data?
Does anyone know of a reliable site or resource to check zoning laws for Airbnbs or STRs in general?
Any other tips or tools that have worked for you when investing and you think I should definitely consider?


Thanks in advance for your help!

Hello Everyone,
I want to buy an investment property and am here to learn about STR investing before I buy one. I have a full-time remote job and am looking for a property as an alternative investment.

I am looking forward to connecting with you all and Learn.