Rental Property Investor · Pocono Pines, PA · Member since 2018 · 153 posts · 117 votes
4y
@Pretty Khare
These are great numbers, awesome to hear about the niche in Tampa.
To quickly sift and compare apples to apples, the minimum a property gross to purchase price ratio needs to be 1.67% in markets I underwrite in.
So for a 500K house, gross rent would need to hit at least $5000x1.67%, or $8,333 gross.
Generally I see STR expenses to be between 35-40% of gross if you have management in place, cleaning revenue, maintenance, utilities, etc.
Being conservative this leaves 60% of gross as NOI typically. If you want 1% rule on NOI (a minimum standard for a good deal in STR), then you'll need 1.67% gross (1/.6).
I know @Josh Messinger is seeing this in the Poconos as this is a market I invest in heavily, and I’m sure most of those Tampa rentals mentioned are in a similar boat.
STR is my sole focus, always ready to chat STR if you reach out!
I appreciate the advice, it looks like I need to take a mini coarse on determining ROI COC LTV and a few other abbreviations. Anyhow we are neighbors it look like (Covington, Louisiana). I will connect to you and look forward to speaking to you in the future.