Profit to pay new mortgage

Member since 2021 · 7 posts · 3 votes

Hi everyone.

I own one Airbnb. I want to buy the second, but I am afraid it’s going to be hard to pay for two mortgages, with only my 9-5 job. Should I use the profit of my airbnb to help pay the monthly installments of my supposedly second mortgage? any other strat?

thank you so much.

Kiko

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John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

First you own a STR on Airbnb.

2nd, The income from each property should more than pay its mortgage.

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Leslie Anne Morris
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
3y
Don’t buy it if it’s not going to pay for itself
https://www.biggerpockets.com/...
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Theresa HarrisPro Member
Member since 2019 · 15k+ posts · 11k+ votes
3y
The money from your current STR should be covering the mortgage for that.
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Kenneth GarrettPro Member
Investor · Florida Panhandle/Illinois · Member since 2016 · 4k+ posts · 3k+ votes
3y
@Kiko Mattoso
Your first STR should cover its own mortgage payment and it's other expenses. There should be profit left over. Your 2nd STR should do the same thing. Your W-2 should not be covering your investment expenses unless you meant your DTI is to high.
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Kiko Mattoso
OP
Member since 2021 · 7 posts · 3 votes
3y
Quote from @Theresa Harris:

The money from your current STR should be covering the mortgage for that.

Thank you!
0 Reply
Kiko Mattoso
OP
Member since 2021 · 7 posts · 3 votes
3y
Quote from @Leslie Anne Morris:

Don’t buy it if it’s not going to pay for itself
https://www.biggerpockets.com/...
Thanks!
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
First you own a STR on Airbnb.
2nd, The income from each property should more than pay its mortgage.
1 Reply
Kiko Mattoso
OP
Member since 2021 · 7 posts · 3 votes
3y
Quote from @John Underwood:

First you own a STR on Airbnb.
2nd, The income from each property should more than pay its mortgage.
Totally. I guess I’m more worried until the house gets ready to be put on Airbnb, so like 6 months, until I do some renovations and buy new furniture. You know? Then, yes, it hopefully should pay for itself.
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Kerry BairdPro Member
Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
3y
Reserves. Keep six months or more payments in a reserve account.
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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
Hey @Kiko Mattoso, is your first STR on VRBO as well? If not you are missing out on a lot of guests.
1 Reply
Brooklyn McCarty
Investor · Member since 2022 · 1k+ posts · 754 votes
3y
Read the book Profit First
1 Reply
Nathan GesnerBusiness Member
Moderator
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
3y
Quote from @Kiko Mattoso:

When purchased properly, an investment will cover its own expenses and provide additional cashflow. The additional cashflow should be saved and used to purchase new investments. This will accelerate your growth and wealth building.
If the second property will not pay for itself, cover all expenses, and provide cashflow, then it's not a good deal and you shouldn't buy it. Same with the first property.
Here's a guide that describes what good cash flow looks like and how to analyze a property.

https://www.biggerpockets.com/...
The DIY Landlord Book4.7247 Reviews
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Jay ThomasPro Member
Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
3y
Real estate can be expensive, but if you budget your short-term rental income correctly, it should be more than enough to cover the mortgage payments. That's why it's important to make sure that you plan out your finances and make sure that the money from your current STR is going towards the right place!
[email protected]832-889-5607
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Kiko Mattoso
Member since 2021 · 28 posts · 6 votes
3y
Quote from @Michael Baum:

Hey @Kiko Mattoso, is your first STR on VRBO as well? If not you are missing out on a lot of guests.

No, is it worth it? But does the platforms combine so there's no double booking?
0 Reply
Kiko Mattoso
Member since 2021 · 28 posts · 6 votes
3y
Quote from @Nathan Gesner:

Quote from @Kiko Mattoso:

When purchased properly, an investment will cover its own expenses and provide additional cashflow. The additional cashflow should be saved and used to purchase new investments. This will accelerate your growth and wealth building.
If the second property will not pay for itself, cover all expenses, and provide cashflow, then it's not a good deal and you shouldn't buy it. Same with the first property.
Here's a guide that describes what good cash flow looks like and how to analyze a property.

https://www.biggerpockets.com/...

thanks!!
1 Reply
Kiko Mattoso
Member since 2021 · 28 posts · 6 votes
3y
Quote from @Brooklyn McCarty:

Read the book Profit First

thanks!
0 Reply
Kiko Mattoso
Member since 2021 · 28 posts · 6 votes
3y
Quote from @Kerry Baird:

Reserves. Keep six months or more payments in a reserve account.

got it thanks.
0 Reply
Andrew Simms
Rental Property Investor · Marietta, GA · Member since 2017 · 131 posts · 101 votes
3y
Quote from @Kiko Mattoso:

Quote from @Michael Baum:

Hey @Kiko Mattoso, is your first STR on VRBO as well? If not you are missing out on a lot of guests.

No, is it worth it? But does the platforms combine so there's no double booking?

@Kiko Mattoso You can sync the calendars to prevent that from happening. Some folks don't allow instant booking at all, so that should not be a problem or you could just allow instant booking on one of the platforms and require guests to inquire about booking through the other. The other way to prevent it is to use a property management software, such as Hospitable.

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Carlos Ptriawan
Member since 2019 · 7k+ posts · 4k+ votes
3y
Quote from @Kiko Mattoso:

Hi everyone.

I own one Airbnb. I want to buy the second, but I am afraid it’s going to be hard to pay for two mortgages, with only my 9-5 job. Should I use the profit of my airbnb to help pay the monthly installments of my supposedly second mortgage? any other strat?
thank you so much.
Kiko

my strategy is for midwest cash flow market to pay for mortgage in my primary.
I also use CD interest to pay my mortgage.
0 Reply
Kiko Mattoso
Member since 2021 · 28 posts · 6 votes
3y
Quote from @Andrew Simms:

Quote from @Kiko Mattoso:

Quote from @Michael Baum:

Hey @Kiko Mattoso, is your first STR on VRBO as well? If not you are missing out on a lot of guests.

No, is it worth it? But does the platforms combine so there's no double booking?

@Kiko Mattoso You can sync the calendars to prevent that from happening. Some folks don't allow instant booking at all, so that should not be a problem or you could just allow instant booking on one of the platforms and require guests to inquire about booking through the other. The other way to prevent it is to use a property management software, such as Hospitable.

great, thanks a lot Andrew!
0 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
@Kiko Mattoso treat each property as it’s own business. Each property needs to maintain itself.
0 Reply
Bud Gaffney
Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
3y
@Kiko Mattoso if it’s not $ flowing don’t buy it. IMO
0 Reply
Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
Quote from @Kiko Mattoso:

Quote from @Michael Baum:

Hey @Kiko Mattoso, is your first STR on VRBO as well? If not you are missing out on a lot of guests.

No, is it worth it? But does the platforms combine so there's no double booking?

Yes it is worth it. It is like selling a car on the side of the road and only on the side of the road. You put it on Autotrader or Craigslist. You get many more eyes and the chances of selling goes way up.

By not using VRBO you are missing out on hundreds of thousands of users looking to book a place. Why give up that avenue?

I also have found the VRBO guests to be much better than AirBNB guests. All my damage and problems have been with AirBNB people. Much more rare with VRBO guests.
You will have to take steps to prevent double bookings and as other have said there are tools that can sync the calendars. We don't do instant booking so I control that and just add things to calendars as needed.

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Kiko Mattoso
Member since 2021 · 28 posts · 6 votes
3y
Quote from @Michael Baum:

Quote from @Kiko Mattoso:

Quote from @Michael Baum:

Hey @Kiko Mattoso, is your first STR on VRBO as well? If not you are missing out on a lot of guests.

No, is it worth it? But does the platforms combine so there's no double booking?

Yes it is worth it. It is like selling a car on the side of the road and only on the side of the road. You put it on Autotrader or Craigslist. You get many more eyes and the chances of selling goes way up.

By not using VRBO you are missing out on hundreds of thousands of users looking to book a place. Why give up that avenue?

I also have found the VRBO guests to be much better than AirBNB guests. All my damage and problems have been with AirBNB people. Much more rare with VRBO guests.
You will have to take steps to prevent double bookings and as other have said there are tools that can sync the calendars. We don't do instant booking so I control that and just add things to calendars as needed.

that's great, thanks!
0 Reply
Kiko Mattoso
Member since 2021 · 28 posts · 6 votes
3y
Quote from @Bud Gaffney:

@Kiko Mattoso treat each property as it’s own business. Each property needs to maintain itself.

so true, thanks.
0 Reply
Kiko Mattoso
Member since 2021 · 28 posts · 6 votes
3y
Quote from @Andrew Simms:

Quote from @Kiko Mattoso:

Quote from @Michael Baum:

Hey @Kiko Mattoso, is your first STR on VRBO as well? If not you are missing out on a lot of guests.

No, is it worth it? But does the platforms combine so there's no double booking?

@Kiko Mattoso You can sync the calendars to prevent that from happening. Some folks don't allow instant booking at all, so that should not be a problem or you could just allow instant booking on one of the platforms and require guests to inquire about booking through the other. The other way to prevent it is to use a property management software, such as Hospitable.

Thanks a lot, that's very helpful!
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