. $400 a month for utilities, $500 for misc expenses like toiletries, maintenance/repairs, landscaping etc. $150 a month for insurance (this might be low?).

If you mean maintenance, people find a trusted contractor.

After talking to two realtors with intimate knowledge of the area, we learned that STR rents and annual occupancy are just too low to even cover the PITI of properties in the area, let alone maintenance, supplies, lawn care, snow removal, etc.

@Jimmy Leaton If you can rent out your primary home and it can be cashflow positive to help with upkeep from maintenance, repairs, and any bits of vacancy then it's worth exploring more.

I also factor in soft budgeted expenses like cap ex, maintenance, and vacancy.For example, if I had a $3k rental and the hard expenses were $2,200 you might view this as $800 cash-flow positive, but I am going to budget maybe 15% for those soft expenses and my cash-flow would be $350 per month.

It’s a good idea to get specific about how they plan to address maintenance or operational issues independently, so you’re not getting those 8-10 calls a month.Marketing Strategy: How do they keep your listing competitive on platforms like Airbnb, VRBO, and others?

10% is probably a little steep, and like John said, a flat fee may be more reasonable.Setting up a proper STR is not cheap, but once you are set up properly, you deal with routine breakage.I recommend managing yourself and saving the 20% personally, getting a rockstar cleaning team and a reliable handy person, using something like Hospitable that can help automate messaging when listing, and reading the book from the bookstore here called Short-Term Rental, Long-Term Wealth.

It was not uncommon that they bought some of the worst houses (weird layout, dated, much deferred maintenance) in the nicest neighborhoods and then would try to relist them as-is to make a profit before ending up having to do the actual work required to the property for it to sell again, selling at a loss, or maybe making a little bit of money in transaction fees.

I'm a big fan of Dallas/Houston -- the strategy you pursue should be dependent on the property management resources you have in that market & your appetite for property maintenance (higher for STR's).

I’m moving out of the house soon and will be living rent-free with my wife at my parents' place in the Bay Area due to some recent life changes.Here’s a breakdown of my situation:Location: Sacramento, CA (4 bed, 2 bath, recently renovated)Current mortgage payment: $3,940/month (including escrow)Mortgage balance: $475,000Current home value: $515,000 - $535,000 (based on comps)Rental estimate: Property management companies are quoting $2,600/month (with fridge/washer/dryer included), but some websites suggest it could go for up to $3,000/month.Planned budget:$540/month for capital expenditures and maintenance$100/month for lawn careTenant to cover utilities (gas, electricity, water)7.5% vacancy rateWe bought the house thinking it would be our forever home, but with our current situation, I’m trying to figure out the best long-term plan.