Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here
Starting Out
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated 5 days ago on . Most recent reply

User Stats

9
Posts
5
Votes

First Time STR analysis

Posted

Hello!  First post and long time listener. I think I know the answer to this question already, but want to make sure I am not missing anything (plus I am still learning). We evaluated 2 properties yesterday.  Both will come in about -$14-16K annually, have a cap rate of 3.7%.  If we are losing money every year, but do plan on holding on to it long term, with our goal being appreciation of the market and someone else paying a good chunk of our mortgage, is this worth doing on any level?  I know we would see tax savings too.  Feel free to dumb this down for me, I want to learn and have had this goal for a long time.  I'm just not sure if I have analysis paralysis etc.  The other part of this is that in addition to this, we are borrowing from our home equity line of credit to put down the 20% deposit- so we have that payment too.   Price of condos we are considering are $465-$475k and they each bring in about $35K annually.  Thank you so much in advance!

Loading replies...