Airbnb questions and getting started

[Sam Booth]

I currently have 2 out of state long term rentals and in my quest to diversify was thinking about doing an Airbnb with a home in my own area (Sacramento, or nearby Citrus Heights, or somewhere near). Local would allow me to maintain and do the cleaning myself. Heres my questions:

1) Is the airbnb host calculator very accurate? If so, it would appear that some very good income could be made.

2) Hows the fees and cleaning work out for most of you that have been doing it?

3)Any tips for getting started?

4) If I use a DSCR loan, are there any issues with that type of rental?

[John Underwood]

I wouldn't trust the calculator. I would manually look up simular properties to what you might buy and check their occupancy and nightly rates.

Cleaning fees are paid by the guests and are a pass through.

Read through this forum for plenty of tips to getting started.

[Nathan Gesner]

Quote from @Sam Booth:

I currently have 2 out of state long term rentals and in my quest to diversify was thinking about doing an Airbnb with a home in my own area (Sacramento, or nearby Citrus Heights, or somewhere near). Local would allow me to maintain and do the cleaning myself. Heres my questions:

1) Is the airbnb host calculator very accurate? If so, it would appear that some very good income could be made.

2) Hows the fees and cleaning work out for most of you that have been doing it?

3)Any tips for getting started?

4) If I use a DSCR loan, are there any issues with that type of rental?

If you're managing yourself, you can expect to net 2x what you make with a long-term rental, probably more. I use a PM for mine and still net almost 3x what I would as a long-term. Keep in mind you'll be spending more time answering inquiries, maintenance calls (like how to operate the TV remote or A/C), coordinating cleaners, etc. 

[Bruce Woodruff]

Quote from @John Underwood:

I wouldn't trust the calculator. I would manually look up simular properties to what you might buy and check their occupancy and nightly rates.

This^^^^ Don't trust an algorithm to do such an important task....

[Trish Mccoy]

Hey Sam,

I would go onto airbnb and vrbo and look what similar STR in your are are priced - as that is how you'll be compared by the consumer.

I have numerous STR's in the Grass Valley/Nevada City area and don't do the cleaning, but I do that laundry, make all the beds and do all the bookings and it's A LOT of work. But if you will just have one, it should be a breeze.

I would have someone help you furnish/design (unless you are good at that)  and get professional pics - also get ring door/security cameras - smart lock - nest theromstat - Find a way to make your property unique or stand out somehow.

[Joshua Messinger]

Hey @Sam Booth! 

1. I wouldn't trust the calculator as it is all algorithm based so could be only showing speculative results and you wouldn't even know. I would use Pricelabs, Airdna, or Rabbu's data to come up with your own estimates on the rates you will have. 

2. We outsource mostly all of our cleaning to out-of-house cleaning companies. But, we make sure to double-check to make sure everything was done properly before check-ins. 

3. Set some clear objectives that you want to hit and write down what you really want. Whether that be having more time for yourself, or do you just want to make money? You can do everything by yourself and not use any PM company, or cleaners and take home 10% - 30% more if not more than that. Or, you can outsource everything and make this as passive for yourself as you can (I would never expect having STRs to be 100% passive though).

4. I would check with multiple lenders to figure out more information on this.

If you have any more questions don't hesitate to reach out! 

All  the best,

Josh 

[Sam Booth]

Quote from @Trish Mccoy:

Hey Sam,

I would go onto airbnb and vrbo and look what similar STR in your are are priced - as that is how you'll be compared by the consumer.

I have numerous STR's in the Grass Valley/Nevada City area and don't do the cleaning, but I do that laundry, make all the beds and do all the bookings and it's A LOT of work. But if you will just have one, it should be a breeze.

I would have someone help you furnish/design (unless you are good at that)  and get professional pics - also get ring door/security cameras - smart lock - nest theromstat - Find a way to make your property unique or stand out somehow.

Thanks for the info! Another question is, does the location make a huge difference? I am over in Citrus Heights and so it's a track home and not like great hiking or wedding venues near by. How much is this a factor? Thanks so much!

[Sam Booth]

Thanks everyone for the replies! Appreciate all the tips and info. How much does airbnb take out of the price? Thanks so much 

[Trish Mccoy]

Quote from @Sam Booth:

Quote from @Trish Mccoy:

Hey Sam,

I would go onto airbnb and vrbo and look what similar STR in your are are priced - as that is how you'll be compared by the consumer.

I have numerous STR's in the Grass Valley/Nevada City area and don't do the cleaning, but I do that laundry, make all the beds and do all the bookings and it's A LOT of work. But if you will just have one, it should be a breeze.

I would have someone help you furnish/design (unless you are good at that)  and get professional pics - also get ring door/security cameras - smart lock - nest theromstat - Find a way to make your property unique or stand out somehow.

Thanks for the info! Another question is, does the location make a huge difference? I am over in Citrus Heights and so it's a track home and not like great hiking or wedding venues near by. How much is this a factor? Thanks so much!

 Well... I'm not sure because I don't have any  str that are considered track homes, but it probably is a factor.  -   You probably you are not going to attract the same guest as I do....I would image you might attract people there are business or traveling nurses or doctors.  I would look at what industry is in the area and maybe target them. Is there any particular reason you are buying there?  Is it just because it is close to you?    If I were you, I'd either be looking closer to Sac or... a bit further up the hill..perhaps Auburn - or anyplace that is a draw for people.  Just my .02

[Bruce Woodruff]

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