Death Rate: The death rate has been gradually increasing.

I work with some builders and they have 2-4 units with rates in the 4-5% range.

Now he has sold the company and is more of a flat rate charge based loosely on how long it takes him to prepare the return.

We are BRRRRing it and we’re originally going to rent traditionally, however we decided to look into it as an Airbnb, and when we put in current loan rates which will be near or at 7% when we are ready, we’d only cash flow about $150 a month 😱, but as an Airbnb our projections are around $1,300 cash in our pockets monthly. 💰 At this point is a no brainer 🧠 and we know if it doesn’t work out or we don’t like doing it we can always revert to a traditional rental. 

You get a Capitalization Rate (CAP Rate), which equals your annualized return by dividing the Net Operating Income (you had gross in your narrative) by the purchase price.

Our occupancy rates have been 65-95% during the peak.

Make sure to run the numbers on DSCR, CoC return, and cap rates to ensure profitability.

My question would be is a 6 cap the going rate in the area for that building.

@Ed Lopez our thoughts:1) $65 is average hourly rate for handyman in Metro Detroit.

You snowball plan has a very high success rate.