All Forum Posts by: Tim Bee

Quote from @Joe Villeneuve:

Only your hairdresser knows for sure...,and if you strike out there, ask your accountant, and if that proves useless, try your...your,...yourself.  The answer to your question lies (as everyone above has stated) within your own bank account and monthly bills.  That describes your need.  Add to that, the money you would "need" to do the things you can't do now for lack of funds.  That's your "want".

Start with your "need".  When you have achieved that, your "want" becomes your next "need".  Once you get there, your next "need(s)" is defined by your next "want(s)", with each set of "needs" in the order of the next priority. 

lol... I should have put quotes around "you" in the question.  And I was looking for mainly a figure out of curiosity.  I will word it differently next time.  

Supply and demand.  Your commander in chief cut off the keystone pipeline causing a spike in oil leading to increased gas prices, which led to increased costs of transportation for goods.  This caused prices to sky rocket leading to inflation higher than in the 1970s.  This coupled with a Afganistan debacle led by a demented man with cognitive decline led a communist nation to be brave enough to invade Ukraine causing European supply chains to be disrupted.  In an effort to bail out Europe from freezing due to the fact they didn't want to pay said communist regime for higher energy costs the demented man stepped in and is now selling Nat gas to much of Europe limiting the supply for customers at home.  

My mama always said, "stupid is as stupid does"

Quote from @Michael Baum:

Once you start selling cheap, you get cheap guests. They end up destroying your place, trying to get refunds for nothing and complain about everything.

I don't agree with it being mostly about undercutting the competition. It is more about creating a great space with great amenities and building a great reputation.

I agree, you don't want to have a S***hole rental.  You have to make it amazing in every way.  But pricing is HUGE.  Keep your prices too high and you'll suffer.  I know by saying trust me it means nothing.... but trust me..lol

Quote from @Susan Maneck:

Quote from @Tim Bee:

Quote from @Susan Maneck:

Quote from @Tim Bee:

Quote from @Susan Maneck:

Mississippi investor here. It is rather difficult to answer this question because I paid cash for most of my properties, but I house I bought for about 30K now rents for $900, your not likely to find those deals right now. 

With a gross rent of 900/mo what's your average net?  Thanks

How do you calculate gross profit for a property I paid cash for? Probably after insurance, taxes, property management and repairs $500 a month or more. 

Yea calculating net profit is really easy. You just take your gross monthly rent. Subtract average damages, prop taxes, insurance, probable vacancy, income taxes, HOA if any. The money left over is called net income. What you paid to purchase this property would not be part of the equation for this particular question.
 

Well, normally your mortgage payment would be subtracted as well but when you pay cash that changes things dramatically. 

Here is my question from the topic section of this forum

"Hi, I am new to this forum. My question is what is your average net income per door? Excluding mortgages/loans."

Hope this helps.

Joshua tree is making it very difficult to buy/run STRs.  I wouldn't buy there.  Look at La Quinta (1 hr from there).  That city is booked year round on STRs and the home prices, though up, are still low enough to cash flow.  That city has major golf tournaments all the time and has nice weather 9 months of the year.  Even during the summer you'll get bookings.  You will end up averaging about double what you'd get for a long term rental after all is said and done. The city does have a few rules but they are workable.  Good luck.

Legally it makes more sense to hire a knowledgeable property management company.  They already know all the legal rules behind managing.  If you don't do things correctly you could get sued should you have a litigious tenant.  If you are barely breaking even on this property you should probably just sell it.  It's not worth holding onto a dog that's going to cost you in the long run.  Take that profit from the sale and buy a property that falls into the 1% rule.  Get a cheap one in the 100-150K range out of town and earn some good positive cash flow where you will be able to afford a prop manager.  Good luck man.

STRs are largely based off undercutting the competition price wise.  Look for similarly sized STRs in that region and take about 30% off your listing.  Think volume!  Being booked 20 days a month at 100/night is better than being booked 5 days a month at 130/night.  These aren't hard numbers but more of an example for you to experiment with.  Good luck.

Quote from @Susan Maneck:

Quote from @Tim Bee:

Quote from @Susan Maneck:

Mississippi investor here. It is rather difficult to answer this question because I paid cash for most of my properties, but I house I bought for about 30K now rents for $900, your not likely to find those deals right now. 

With a gross rent of 900/mo what's your average net?  Thanks

How do you calculate gross profit for a property I paid cash for? Probably after insurance, taxes, property management and repairs $500 a month or more. 

Yea calculating net profit is really easy. You just take your gross monthly rent. Subtract average damages, prop taxes, insurance, probable vacancy, income taxes, HOA if any. The money left over is called net income. What you paid to purchase this property would not be part of the equation for this particular question.

How much monthly rental income do you need to NET (what goes in your pocket after loans, repairs, taxes, etc.) to quit your job?