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Elijah Bryant
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Short Term Rental+ Long Term Rental

Elijah Bryant
Posted Sep 19 2022, 07:06

Is it possible to cash flow on a 5+ 3+ bath in utah county area? 

Have a long term renter in basement and airbnb the top part for 10 months out of the year? 

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John Underwood
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John Underwood
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Replied Sep 19 2022, 07:45

Check your competition on Vrbo and Airbnb and run the numbers. This is the only way to know.

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Dave Stokley
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Dave Stokley
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Replied Sep 19 2022, 08:38

Being able to evaluate a deal is THE core skill in investing in real estate.

Calculate your income, calculate your expenses, then determine if it works.

If you have specific questions the forums are a great resource, but you can't just ask people to run numbers for you.

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Elijah Bryant
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Elijah Bryant
Replied Sep 19 2022, 10:56

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Elijah Bryant
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Elijah Bryant
Replied Sep 19 2022, 10:56

What are the tools you guys are using to run the numbers on something like this? 

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Michael Baum
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Michael Baum
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Replied Sep 19 2022, 13:56

Hey @Elijah Bryant, just a spreadsheet. Just plug in everything you can find and see what's what.

Like @John Underwood, you need to use an objective eye on the place and make sure it makes sense as a STR. Is it in a town like Orem or Provo? How close to Utah Lake?

Who is living in the basement? Will they be tolerant of STR's coming and going?

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John Underwood
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John Underwood
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Replied Sep 19 2022, 14:27
Quote from @Elijah Bryant:

What are the tools you guys are using to run the numbers on something like this? 

Excel Spreadsheet. Deduct expenses from income.

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Tyler Cazier
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Tyler Cazier
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Replied Sep 19 2022, 14:41

Elijah, I'd be willing to help walk you through underwriting a deal. As @John Underwood mentioned, you HAVE to know your local competition and their numbers. Then, as @Michael Baum said, you start working backwards using a spreadsheet until you've got all your income, all your expenses, and the sacred Net Operating Income (NOI). Then the only question is, "Is this NOI high enough for me to do this deal?"

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Elijah Bryant
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Elijah Bryant
Replied Sep 20 2022, 00:35

@Michael Baum makes sense. I think Utah county area. Provo up to Lehi is where I’m thinking. Still looking but just wanted to see how to see if the numbers work. Still trying to learn how to run numbers and I know this is a unique situation. Thanks for the advice 

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Bobby Souza
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Bobby Souza
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Replied Sep 20 2022, 03:56

As everyone mentioned above, you'll want to estimate potential gross income and total expenses. From a short-term rental perspective you're looking at one-time fees like furnishing & tech and then monthly expenses such as: mortgage, insurance, utilities, property tax, HOA if applicable, cable/internet, OTA fees, maintenance/capex, software subscriptions, supplies, cleaning fees.

Tools I use to analyze deals for short-term renting: Airdna, Rabbu, Pricelabs Market Dashboard. I suggest using at least two different tools/sources to get a good idea of the overall market (macro), the potential occupancy and average daily rates. Always use Airbnb to vet out the numbers by looking at comps: see pricing, cleaning fees and availability.

Hope this helps. Feel free to DM if you have any additional questions or want to dive into this further. 

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Elijah Bryant
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Elijah Bryant
Replied Sep 20 2022, 09:01

@Bobby Souza thanks for the information! 

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Michael Baum
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Michael Baum
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Replied Sep 20 2022, 12:48

Don't forget VRBO. They have been in the game for much longer than AirBNB. It is important to use both platforms.

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Masyn Grant Barney
  • Real Estate Agent
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Masyn Grant Barney
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Replied Sep 21 2022, 11:35

Is this the real (NBA champ) @Elijah Bryant??

I'd love to help out and could explain how I run my numbers. As for airbnb, I use airdna.co to check the market and estimate potential nightly rates as well as vacancy %. There is a lot that goes into airbnbing a property so numbers can fluctuate wildly. Let m know if you want to connect and run some numbers together. 

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Michael Baum
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Michael Baum
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Replied Sep 21 2022, 14:16

It's Short Term Renting. Not AirBNBing.

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Mick Hofmann
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Mick Hofmann
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Replied Oct 4 2022, 16:13

@Elijah Bryant For comps, I use Airbnb to find homes in that area. You can search address and then find homes around it. Then I use Airdna, mashvisor, and Rabbu to get a good idea of what it could gross as a STR. You can find both historical numbers and projected numbers on these sites. Factor in your expenses and then you will arrive at your number. In seasonal markets, like here in Phoenix, it is better to have a yearly number rather than a monthly number because it will fluctuate so much.

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Duane Richards
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Duane Richards
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Replied Oct 7 2022, 15:14

@Elijah Bryant I'm not a professional agent nor a financial advisor, but I spent over a year researching, learning and calculating deals before I committed to my first one. I have 6 LTR's in Utah County now and one STR (out of state), and I can tell you the calculations were MUCH easier on the LTRs. But I'm glad to share my experience with you along with the tools I used (and still use). I'm still actively looking for deals in SL and Utah counties, but they aren't as lucrative as they used to be! They are still out there, though!