All Forum Posts by: Vincent Porter

I am trying to estimate what price I can pay, what night rate I can get and what my occupancy percentage should be . 

From the data I have pulled from AirDNA I think we could estimate about 120 days a year to rent this. If I can get an average daily rate of $360 / night then I could generate a 10% return on a $250k property. Thats before I go back in and change this to add in a few things I missed that John brought up. Obviously, 120 days and $360 / night are assumptions gathered from AirDNA. 

I would love for this to work and generate a return. In fact, I would not do this deal if it cant make me a profit. 

Here is what I have currently : 

• Prop Price $250k
• Furnishing Costs $10k
• Closing Costs $7.5k
• Total Acquisition Cost $75k
• Rent $43.2k (120 days @ $360 avg)
• Annual Taxes $4.9k
• Annual Utilities $9.5
• Internet $2.4
• Insurance $2.5
• Maintenance $5k
• Booking Fees (3%) $1.3k
• Cleaning / Main $2.2
• Debt Service $12.9k
• Total Exp $35.8k 
• Profit $7.4k 
• Cash Return 10% (7.4k / 75k Acquisition Cost)

Thoughts? 

Great , Great advice! I overlooked TV and the fact that I have to have a lawn guy come out to take care of this. I have no idea about dock permits but I will check into this with the local realtors/locales. The HOAs are very minimal in the area that I am looking but that is certainly a factor.

I agree with you guys on the property management. If we can find a reliable person to clean and a reliable handyman then we can manage the bookings ourselves.

First-time poster, long time reader. 

I have recently discovered BiggerPockets in my venture into real estate. What a goldmine of information and ideas. I feel like a kid in a candy store jumping from topic to topic as well as digesting all of the podcast content. 

Here is my question. I am looking at potential lake houses outside the DFW market with hopes of using this as an AirBNB to generate a return. If I get to use this 4 -6 times a year too that would be great. I understand the tax consequences and how to navigate that. 

My question relates to my analysis. When I am projecting what my investment should be, what my occupancy rate should be and what nightly rate should be I need to know all of the costs. What costs should I consider to maintain the property on an ongoing basis? Currently, I have the following : 

1. Closing Costs on Loan
2. Furnishing costs on the property 
3. Annual prop taxes 
4. Monthly Utilities (Electricity, Water, Gas, Internet)
5. Insurance 
6. Maintenance 
7. Property Mgt 5-25% depending on what you choose
8. AirBNB Fees 3%
9. Debt Service 

I have not included hotel occupancy taxes. Texas AirBNBers - correct me put AirBNB / HomeAway collect this on your behalf so this is not your responsibility?

What am I missing? Is there anything I am overlooking or not accounting for? 

Thanks in advance