All
Members
Companies
Blog
Forums
Podcast
Webinars
    User Log in  /  Sign up
  • Forums
    Newest Posts Trending Discussions Followed Forums Real Estate News & Current Events General Landlording & Rental Properties Buying & Selling Real Estate Deal Analysis See All
  • Education

    Read

    BiggerPockets Blog BPInsights: Expert Analysis Coronavirus Content & Resources Guides Glossary Reviews Member Blogs

    Watch

    Webinars Video Library Financial Independence Blueprint Intro to Real Estate: Rentals

    Listen

    BiggerPockets Real Estate Podcast BiggerPockets Money Podcast BiggerPockets Business Podcast Real Estate Rookie Podcast Daily Podcast (Audio Blog)

    Topics

    Business Operations Finance Finding Deals Property Management Property Types Strategy
  • Network

    Recommended Vendors

    Real Estate Agents Mortgage Lenders Companies Hard Money Lenders Contractors Investment Companies

    Search

    Members Events Jobs
  • Tools

    Calculators

    Rental Property Fix and Flip BRRRR Rehab Estimator
    Wholesaling Mortgage Payment 70% Rule Airbnb

    Services

    BPInsights: Property Insights Tenant Screening Property Management Lease Agreement Packages

    New Feature

    BPInsights (beta)

    Quickly analyze a property address or ZIP Code to compare your rent in your neighborhood.

    Analyze a property
  • Find Deals
    Real Estate Listings Find Foreclosures External Link Ads, Jobs, and Other
  • Bookstore

    Real Estate Books

    Profit Like The Pros Bidding to Buy See all books

    Featured Book

    BiggerPockets Wealth Magazine book cover
    BiggerPockets Wealth Magazine

    Written by financial journalists and data scientists, get 60+ pages of newsworthy content, expert-driven advice, and data-backed research written in a clear way to help you navigate your tough investment decisions in an ever-changing financial climate! Subscribe today and get the Oct/Nov issue delivered to your door!

    Get the Magazine
  • Pricing
Log In Sign up
User
Quick search links
Podcast Hard Money Lenders Books New York
ForumsArrowShort-Term and Vacation Rental DiscussionArrowAirbnb Yay or Meh 2019
  • Newest Posts
    • Newest Posts
    • Unanswered Discussions
  • Trending
    • Top Discussions
    • Trending Discussions
  • Browse Forums
Search Nova
Topic: 1031 Exchanges Topic: Akron Real Estate Forum Topic: Alabama Real Estate Q&A Discussion Forum Topic: Alaska Real Estate Q&A Discussion Forum Topic: Alberta Real Estate Forum Topic: Albuquerque Topic: Allentown Real Estate Forum Topic: Anchorage Real Estate Forum Topic: Ann Arbor Topic: Arizona Real Estate Q&A Discussion Forum Topic: Arkansas Real Estate Q&A Discussion Forum Topic: Arlington Real Estate Forum Topic: Asheville NC Real Estate Forum Topic: Ask About A Real Estate Company Topic: Athens Real Estate Forum Topic: Atlanta Real Estate Forum Topic: Aurora Real Estate Forum Topic: Aurora Real Estate Forum Topic: Austin Real Estate Forum Topic: Bakersfield Real Estate Forum Topic: Baltimore Real Estate Forum Topic: Bankers, Lenders, and Mortgage Brokers Topic: Baton Rouge Real Estate Forum Topic: Beaverton Real Estate Forum Topic: BiggerPockets Business Podcast Topic: BiggerPockets Exclusive PRO Area Topic: BiggerPockets Money Podcast Topic: BiggerPockets Real Estate Investing Summit Topic: BiggerPockets Summer Reading List Topic: BiggerPockets Webinar Discussion Forum Topic: Billings Real Estate Forum Topic: Birmingham Real Estate Forum Topic: Bismarck Real Estate Forum Topic: Boise Real Estate Forum Topic: Boston Real Estate Forum Topic: Bridgeport Real Estate Forum Topic: British Columbia Real Estate Forum Topic: BRRRR - Buy, Rehab, Rent, Refinance, Repeat Topic: Buying & Selling Real Estate Discussion Topic: California Real Estate Q&A Discussion Forum Topic: Cambridge Real Estate Forum Topic: Canadian Real Estate Topic: Cape Cod Real Estate Forum Topic: Cape Coral Real Estate Forum Topic: Casper Real Estate Forum Topic: Cedar Rapids Real Estate Forum Topic: Chandler Real Estate Forum Topic: Charleston Real Estate Forum Topic: Charleston Real Estate Forum Topic: Charlotte Real Estate Forum Topic: Chattanooga Real Estate Forum Topic: Chesapeake Real Estate Forum Topic: Cheyenne Real Estate Forum Topic: Chicago Real Estate Forum Topic: Chittenden County Real Estate Forum Topic: Cincinnati Real Estate Forum Topic: Cleveland Real Estate Forum Topic: Coastal NC Real Estate Forum Topic: Colorado Real Estate Q&A Discussion Forum Topic: Colorado Springs Real Estate Forum Topic: Columbia Real Estate Forum Topic: Columbia Real Estate Forum Topic: Columbus Real Estate Forum Topic: Columbus Real Estate Forum Topic: Commercial Real Estate Investing Forum Topic: Completed Deal Diaries Topic: Connecticut Real Estate Q&A Discussion Forum Topic: Construction & Remodeling Diaries Topic: Contractors Topic: Conway Real Estate Forum Topic: Coronavirus Conversation Topic: Coronavirus Government Assistance Programs Topic: Creative Real Estate Financing Forum Topic: Currently Under Contract Topic: Dallas Real Estate Forum Topic: Davenport Real Estate Forum Topic: Dayton Real Estate Forum Topic: Delaware Real Estate Q&A Discussion Forum Topic: Denver Real Estate Forum Topic: Des Moines Real Estate Forum Topic: Detroit Real Estate Forum Topic: Do it Yourself Topic: El Paso Real Estate Forum Topic: Eugene Real Estate Forum Topic: Evansville Real Estate Forum Topic: FAQ Forum Topic: Fargo Topic: Fayetteville Real Estate Forum Topic: First Time Home Buyer Topic: Florida Real Estate Q&A Discussion Forum Topic: Foreigners Buying in the USA Topic: Fort Collins Real Estate Forum Topic: Fort Lauderdale Real Estate Forum Topic: Fort Smith Real Estate Forum Topic: Fort Wayne Real Estate Forum Topic: Fort Worth Real Estate Forum Topic: Fresno Real Estate Forum Topic: General Foreclosure & Pre-Foreclosure Forums Topic: General Landlording & Rental Properties Topic: General Real Estate Investing Topic: Georgia Real Estate Q&A Discussion Forum Topic: Germantown Real Estate Forum Topic: Get Foreclosure Help - Stop Foreclosure Forum Topic: Gilbert Real Estate Forum Topic: Glendale Real Estate Forum Topic: Goals, Business Plans & Entities Topic: Grand Rapids Real Estate Forum Topic: Green Bay Topic: Greensboro Real Estate Forum Topic: Hammond Real Estate Forum Topic: Hartford Real Estate Forum Topic: Hawaii Real Estate Q&A Discussion Forum Topic: Henderson Real Estate Forum Topic: Hialeah Real Estate Forum Topic: Hilo Real Estate Forum Topic: Home Owner Association (HOA) Issues & Problems Forum Topic: Honolulu Real Estate Forum Topic: Housing News & Real Estate Market Discussions Topic: Houston Real Estate Forum Topic: HUD, VA, and Tax Sales Topic: Huntington Real Estate Forum Topic: Huntsville Real Estate Forum Topic: Idaho Falls Real Estate Forum Topic: Idaho Real Estate Q&A Discussion Forum Topic: Illinois Real Estate Q&A Discussion Forum Topic: Indianapolis Real Estate Forum Topic: Indiana Real Estate Q&A Discussion Forum Topic: Innovative Strategies Topic: Interest Rate Drops Topic: International Real Estate Topic: Investor Deal Diaries Topic: Investor Psychology Topic: Iowa Real Estate Q&A Discussion Forum Topic: Jackson Real Estate Forum Topic: Jacksonville Real Estate Forum Topic: Jersey City Real Estate Forum Topic: Job Loss/Company Closings Topic: Joliet Real Estate Forum Topic: Jonesboro Real Estate Forum Topic: Kailua Real Estate Forum Topic: Kānèohe Real Estate Forum Topic: Kansas City Real Estate Forum Topic: Kansas City Real Estate Forum Topic: Kansas Real Estate Q&A Discussion Forum Topic: Kentucky Real Estate Q&A Discussion Forum Topic: Knoxville Real Estate Forum Topic: Lakewood Real Estate Forum Topic: Landlord Problem Solving Topic: Las Cruces Real Estate Forum Topic: Las Vegas Real Estate Forum Topic: Lewiston Real Estate Forum Topic: Lexington-Fayette Real Estate Forum Topic: Lincoln Real Estate Forum Topic: Little Rock Real Estate Forum Topic: Local Real Estate Networking Topic: Long Beach Real Estate Forum Topic: Long Island Real Estate Forum Topic: Los Angeles County Real Estate Forum Topic: Louisiana Real Estate Q&A Discussion Forum Topic: Louisville Real Estate Forum Topic: Madison Real Estate Forum Topic: Maine Real Estate Q&A Discussion Forum Topic: Managing Your Property Topic: Manchester Real Estate Forum Topic: Manitoba Topic: Marketing Your Rental Topic: Marketplace Topic: Maryland Real Estate Q&A Discussion Forum Topic: Massachusetts Real Estate Q&A Discussion Forum Topic: Meads Real Estate Forum Topic: Memphis Real Estate Forum Topic: Meridian Real Estate Forum Topic: Mesa Real Estate Forum Topic: Miami Topic: Michigan Real Estate Q&A Discussion Forum Topic: Military Investing Topic: Milwaukee Real Estate Forum Topic: Minneapolis Real Estate Forum Topic: Minnesota Real Estate Q&A Discussion Forum Topic: Mississippi Real Estate Q&A Discussion Forum Topic: Missoula Real Estate Forum Topic: Missouri Real Estate Q&A Discussion Forum Topic: Mobile (Alabama) Real Estate Forum Topic: Mobile Homes & Mobile Home Park Investing Topic: Modesto/Merced Real Estate Forum Topic: Montana Real Estate Q&A Discussion Forum Topic: Montgomery Real Estate Forum Topic: Mortgage Payment Suspension Topic: Mt. Pleasant Real Estate Forum Topic: Multi-Family and Apartment Investing Forums Topic: Nampa Real Estate Forum Topic: Naperville Real Estate Forum Topic: Nashville Real Estate Forum Topic: Nebraska Real Estate Q&A Discussion Forum Topic: Nevada Real Estate Q&A Discussion Forum Topic: Newark Real Estate Forum Topic: New Brunswick Real Estate Forum Topic: Newfoundland and Labrador Real Estate Forum Topic: New Hampshire Real Estate Q&A Discussion Forum Topic: New Haven Real Estate Forum Topic: New Jersey Real Estate Q&A Discussion Forum Topic: New Member Introductions Topic: New Mexico Real Estate Q&A Discussion Forum Topic: New Orleans Real Estate Forum Topic: New York City Real Estate Forum Topic: New York Real Estate Q&A Discussion Forum Topic: Norfolk Real Estate Forum Topic: North Carolina Real Estate Q&A Discussion Forum Topic: North Dakota Real Estate Q&A Discussion Forum Topic: Northwest Territories Real Estate Forum Topic: Norwalk Real Estate Forum Topic: Nova Scotia Real Estate Forum Topic: Nunavut Real Estate Forum Topic: Oakland Real Estate Forum Topic: Off-Topic Topic: Ogden Topic: Ohio Real Estate Q&A Discussion Forum Topic: Oklahoma City Real Estate Forum Topic: Oklahoma Real Estate Q&A Discussion Forum Topic: Omaha Real Estate Forum Topic: Ontario Real Estate Forum Topic: Orange County Real Estate Forum Topic: Oregon Real Estate Q&A Discussion Forum Topic: Orlando Real Estate Forum Topic: Overland Park Real Estate Forum Topic: Pearl City Real Estate Forum Topic: Pennsylvania Real Estate Q&A Discussion Forum Topic: Peoria Real Estate Forum Topic: Personal Finance Forum Topic: Philadelphia Real Estate Forum Topic: Phoenix Real Estate Forum Topic: Pittsburgh Real Estate Forum Topic: Pocatello Real Estate Forum Topic: Portland Real Estate Forum Topic: Portland Real Estate Forum Topic: Prince Edward Island Real Estate Forum Topic: Private Lending & Conventional Mortgage Advice Topic: Property Insurance Questions & Discussions Topic: Providence Real Estate Forum Topic: Provo Real Estate Forum Topic: Quad Cities Real Estate Forum Topic: Quebec Real Estate Forum Topic: Questions About BiggerPockets and Official Site Announcements Topic: Raleigh Real Estate Forum Topic: Rapid City Real Estate Forum Topic: Real Estate Agent Forums Topic: Real Estate Crowdfunding Forums Topic: Real Estate Deal Analysis and Advice Topic: Real Estate Development & New Home Construction Topic: Real Estate Events and Happenings Topic: Real Estate Guru, Book & Course Reviews and Discussions Topic: Real Estate Investor Marketing Help & Advice Topic: Real Estate News & Current Events Topic: Real Estate Not-So-Successful Stories Topic: Real Estate Quizzes Topic: Real Estate Rookie Podcast Topic: Real Estate Success Stories Topic: Real Estate Technology, Social Media & Blogging Topic: Real Estate Wholesaling Questions & Answers Topic: Rehabbing and House Flipping Topic: Reno Real Estate Forum Topic: Renters Discussion Topic: Rent to Own a.k.a. Lease Purchase, Lease Options Topic: REOs Topic: Rhode Island Real Estate Q&A Discussion Forum Topic: Richmond Real Estate Forum Topic: Rio Grande Valley Real Estate Forum Topic: Riverside Real Estate Forum Topic: Rochester Real Estate Forum Topic: Rockford Real Estate Forum Topic: Sacramento Real Estate Forum Topic: Saint Paul Real Estate Forum Topic: Salem Real Estate Forum Topic: Salt Lake City Real Estate Forum Topic: San Antonio Real Estate Forum Topic: San Diego Real Estate Forum Topic: Sandy Springs Real Estate Forum Topic: San Francisco Real Estate Forum Topic: San Jose Real Estate Forum Topic: San Luis Obispo Real Estate Forum Topic: Santa Fe Real Estate Forum Topic: Saskatchewan Real Estate Forum Topic: Savannah Real Estate Forum Topic: Scottsdale Real Estate Forum Topic: Seattle Real Estate Forum Topic: Short Sales Questions Topic: Short-Term and Vacation Rental Discussion Topic: Shreveport Real Estate Forum Topic: Sioux City Real Estate Forum Topic: Sioux Falls Real Estate Forum Topic: South Bend Real Estate Forum Topic: South Carolina Real Estate Q&A Discussion Forum Topic: South Dakota Real Estate Q&A Discussion Forum Topic: Southeast NC Real Estate Forum Topic: Spokane Real Estate Forum Topic: Springdale Real Estate Forum Topic: Springfield Real Estate Forum Topic: Stamford Real Estate Forum Topic: Starting Out Topic: St. Louis Real Estate Forum Topic: Stockton Real Estate Forum Topic: St. Petersburg Real Estate Forum Topic: STR Strategies Under Travel Restrictions Topic: Surprise Real Estate Forum Topic: Tacoma Real Estate Forum Topic: Tallahassee Real Estate Forum Topic: Tampa Real Estate Forum Topic: Tax, Legal Issues, Contracts, Self-Directed IRA Topic: Tax Liens, Notes, Paper, & Cash Flows Discussion Topic: Tempe Real Estate Forum Topic: Tenant Screening Topic: Tennessee Real Estate Q&A Discussion Forum Topic: Texas Real Estate Q&A Discussion Forum Topic: Thornton Real Estate Forum Topic: Toledo Real Estate Forum Topic: Topeka Real Estate Forum Topic: Tucson Real Estate Forum Topic: Tulsa Real Estate Forum Topic: Tuscaloosa Real Estate Forum Topic: Upstate New York Real Estate Forum Topic: Utah Real Estate Q&A Discussion Forum Topic: Vancouver Real Estate Forum Topic: Vermont Real Estate Q&A Discussion Forum Topic: Virginia Beach Real Estate Forum Topic: Virginia Real Estate Q&A Discussion Forum Topic: Waipahu Real Estate Forum Topic: Waipahu Real Estate Forum Topic: Warren Real Estate Forum Topic: Warwick Real Estate Forum Topic: Washington D.C. Real Estate Q&A Discussion Forum Topic: Washington Real Estate Q&A Discussion Forum Topic: Waterbury Real Estate Forum Topic: Westchester County Real Estate Forum Topic: Western NC Real Estate Forum Topic: West Gulfport Real Estate Forum Topic: West Virginia Real Estate Q&A Discussion Forum Topic: Wichita Real Estate Forum Topic: Wilkes Barre Scranton Real Estate Forum Topic: Wilmington Real Estate Forum Topic: Wisconsin Real Estate Q&A Discussion Forum Topic: Worcester Real Estate Forum Topic: Wyoming Real Estate Q&A Discussion Forum Topic: Yukon Real Estate Forum
Create post

Airbnb Yay or Meh 2019

24 Replies

  • Share on Facebook
  • Share on Twitter
  • Share on LinkedIn
Rotate Log in or sign up to reply
user profile avatar
  • Posts 100
  • Votes 62

Jason Taliaferro
Real Estate Agent from University Park, MD

posted over 1 year ago

BP Investors what has been your experience with Airbnb/VRBO vacation and short term rentals? What cities and property types do you have? Did you convert your long terms rentals into short term or did you convert some back?

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Single Family, and Residential
  • Posts 756
  • Votes 1.2K

Avery Carl
Real Estate Agent from USA

replied over 1 year ago

1/3 of my portfolio consists of vacation rentals. Mine are in the Gatlinburg/Smoky Mountain area of Tennessee. I will only consider true vacation rental markets such as Gatlinburg (although there are various others that produce great cash flow as well) for STR's/Airbnb property because the economies of those markets have been dependent on tourism and short term rentals since well before I was born. In other words, those markets are far less likely to impose unfavorable regulations on short term rentals, as they figured out how to capitalize on them decades ago.

My goal isn't to build an entire portfolio of STR's. I use the heavy cash flow from my STR's to roll into other types of investments. It's been a really great strategy so far.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 12
  • Votes 3

Austin Hair
Property Manager from Orlando, FL

replied over 1 year ago

We have two in Orlando and it's going great. We have a little more responsibilities than a long term rental but much for cash flow.  I would say it's about twice as much work and twice as much profit, so still worth it in my opinion. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 100
  • Votes 62

Jason Taliaferro
Real Estate Agent from University Park, MD

replied over 1 year ago

@Avery Carl  Thanks for your response! STR laws are an big risk. Just curious do you roll cash flow into flips or other rentals, or other investments entirely.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Maintenance and Flipping
  • Posts 1.3K
  • Votes 820

Michael Baum
from Olympia, Washington

replied over 1 year ago

VRBO/HomeAway has been great for us in 2019. Only 2 AirBNB guests. One was just OK and the other broke a window among other things.
We are done for the summer. Hoping for some guests this fall and we have one family coming for Thanksgiving.

We are in North Idaho on Lake Coeur d'Alene.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 100
  • Votes 62

Jason Taliaferro
Real Estate Agent from University Park, MD

replied over 1 year ago

Thanks @Austin Hair . Do you find it pretty passive still? Are you close to your properties?

Rotate Log in or sign up to reply
user profile avatar
  • Posts 100
  • Votes 62

Jason Taliaferro
Real Estate Agent from University Park, MD

replied over 1 year ago

Thanks, @Michael Baum

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Single Family, and Residential
  • Posts 756
  • Votes 1.2K

Avery Carl
Real Estate Agent from USA

replied over 1 year ago

@Jason Taliaferro I roll it into single and small multi family LTR’s.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Maintenance and Rentals
  • Posts 5.0K
  • Votes 5.4K

John Underwood
Investor from Greer, South Carolina

replied over 1 year ago

I have also had great luck with VRBO/ Homeaway very little with Airbnb.

I have a lake house that VRBO keeps full.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Team, Traditional Financing, and Maintenance
  • Posts 1.2K
  • Votes 1.0K

Nick Rutkowski
Rental Property Investor from Ithaca, NY

replied over 1 year ago

@Jason Taliaferro

I think short term rentals will always be around, it’s a great business strategy anywhere people need a place to stay. As far as AirBNB and VBRO, I think we’re still riding the wave...until they get outlawed.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 1
  • Votes 2

Daniel B Borden

replied over 1 year ago

I own 3 Airbnb's in New Orleans. I acquired a business license and LLC and run mine as a boutique hotel on paper. But it's just like any other Airbnb except mine can't be taken away due to grandfathering laws. I'm about 15min away from the French Quarter so I stay moderately busy. I do 5500 a month in revenue in the slow months and about 7500 during the busy months with Mardi Gras being a real money maker !! My overhead is usually right at 3250$. (Mortgage, insurance ,flood insurance , utility/gas/internet bills, landscaping, cleaning, supplies, HOTEL TAXES and lastly the random repair and avg of that price)

I have headache days but the vast vast majority of guests are wildly polite and low maintenance. If I rented out all three I would make about 500$ profit a month renting vs 2650$(avg) profit for STR. The choice is obvious


Rotate Log in or sign up to reply
user profile avatar
  • Posts 12
  • Votes 3

Austin Hair
Property Manager from Orlando, FL

replied over 1 year ago

@Jason Taliaferro yes pretty passive if you have a maid, pool company, and lawn maintenance. We rent out half of our duplex so I manage that property and doesn't take much time bc I live there. The other property has a small guest house that I pay the tenant 20% to manage the larger short term rental. That one is almost completely hands off. If you can replicate that deal with a ADU I'd 100% recommend going that route for sure. Make sense?

Rotate Log in or sign up to reply
user profile avatar
  • Posts 100
  • Votes 62

Jason Taliaferro
Real Estate Agent from University Park, MD

replied over 1 year ago

Thanks @Nick Rutkowski

Rotate Log in or sign up to reply
user profile avatar
  • Posts 100
  • Votes 62

Jason Taliaferro
Real Estate Agent from University Park, MD

replied over 1 year ago

Thanks @John Underwood

Rotate Log in or sign up to reply
user profile avatar
  • Posts 100
  • Votes 62

Jason Taliaferro
Real Estate Agent from University Park, MD

replied over 1 year ago

Thank @Daniel B Borden

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Taxes & Accounting and Maintenance
  • Posts 2.7K
  • Votes 2.3K

John Teachout
Rental Property Investor from Concord, GA

replied over 1 year ago

We do airbnb in our personal residence renting out 3 spaces. It pays the utilities. It's a lot of work but we "cash flow" at about the same amount as one of our rental sfr.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 100
  • Votes 62

Jason Taliaferro
Real Estate Agent from University Park, MD

replied over 1 year ago

Thanks @John Teachout

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Team, and Maintenance
  • Posts 2.2K
  • Votes 1.3K

Kerry Baird
Rental Property Investor from Melbourne, FL

replied over 1 year ago

I have had a number of long term rentals, and did fix and flips.  My Realtor friend put his new renovation on Airbnb and said it did really well.  When I found an owner financed property in the municipality that allows STRs, I decided to give it a try.  I’ve been doing pretty well with it, thus far.  80/20 rule on guests and behavior.  

I set Airbnb low and VRBO high at first, trying to get reviews.  Once I had 5, I switched.  I prefer my VRBO guests, because it pays me better, they are older (grandparents, adult children and grandkids) and take better care of the property.  I’m only three months in, so things are likely to change with the school year. 

Rotate Log in or sign up to reply
user profile avatar
  • Posts 5
  • Votes 2

Chris Tryling
Rental Property Investor from Los Angeles, CA

replied over 1 year ago

@Jason Taliaferro

Great question. As you’ve already seen in previous posts, but possibly not in so many words: it depends...

Everything makes sense with the right numbers.

If you are buying a lake house from profits from other rentals at 20-30% down, and it's a super desirable whole home STR, then it will be a no brainer.

We have 6 listings total across a few arenas and here’s what I can you:

Example:

Our Los Angeles master bedroom only (no access to the rest of the home—but with a private restroom and kitchenette inside) 10 min from universal city stays occupied. Close to 100% occupancy rate. It’s a money maker.

Another example:

A 4/2 home that is right next to the hospital district in Fort Worth. We use that property to visit family frequently but keep all 4 bedrooms in rotation including whole home. Even considering our visits, and the lawn maintenance and cleaning and security system etc... we still cash flow a few percent. It’s nice to have a place we use make us money while away.

LOCATION is always key. We mostly have doctors and nurses in rotation for weeks at a time at the Fort Worth home.

It is DEFINITELY more work with STR's but the hidden beauty behind those that nobody has seemed to touch on is that....

People staying in STR's don't have a problem telling you if there is a problem. I.E. leaky faucet? You'll know right away with STR's. They don't mind telling you. Long lease rentals? You might not know until 12 months to.... years?...

Anyway, even for the effort, we enjoy our STR's

Until there are too many to handle...

Hope that helps :)

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Real Estate Finance, Taxes & Accounting, and Traditional Financing
  • Posts 784
  • Votes 919

Natalie Schanne
Real Estate Agent from Princeton, NJ

replied over 1 year ago

@Jason Taliaferro @Chris Tryling My derivative of “short term rental” is the rent by room strategy to working professionals like Chris does with the doctors and nurses. A well located house with furnished bedrooms can rent for 50-100% more. One 5/3 house in Fairfax Virginia worth $400k rents for $2500 long term (market=about equal to the mortgage) OR $4000 (5 bedrooms x $800 plus utilities ). Sometimes I’ve used Airbnb to pick up occupants for short (10-30 days) during room vacancies but my preferred tenants come from FB marketplace, Craigslist or Zillow and sign a year lease with a security deposit and explicit house rules. If not followed, I have the money from security deposit to fall back on. I feel like Airbnb is 10x the drama for the same price and net less. (My house would never rent for $135-150 or more per day ($30x5) with limited vacancy.) With 12 month room rentals I don’t pay for regular cleaning, common area supplies like TP, and don’t have to risk a 1 Star review if I ask for $$ for stained towels or sheets, or another roommate is loud or dirty. When roommate stains the carpet or gouges the wall, it’s cash out of the security deposit. There’s also less turnover of people. With the ST guests I lose something like the room’s ceiling fan remote and have NO idea who did it because cleaner doesn’t notice right away. It’s more stable for the neighborhood and less likely to get neighbor complaints.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Tenants, Rentals, and Finding & Screening Tenants
  • Posts 3.0K
  • Votes 2.8K

Paul Sandhu
Investor from The worst town to live in, Kansas

replied over 1 year ago

My town is not a tourist destination.  But there is a large refinery here.  My renters do specialty short term construction/maintenance jobs in the refinery.  My STRs are an alternative to staying in a motel, it costs less plus people can cook and do laundry.  Bank foreclosures have become fairly common after Amazon closed and moved their distribution facility here.  That was 1800 jobs.  Most of those people left town and let their bank have the house back. 

A 3BR with CH/A in a nice neighborhood goes for $9500.  It might need up to $1000 in repairs, and about $1500 to furnish.  It'll bring in $600/week.

My official day job is working in a medical clinic. I give the refinery contractors a pre-access drug screen to get in the plant. I can have my cake, and eat it too. During the day I'm at an STR doing minor repairs and maintenance. When someone needs the pee test, I'm there is a few minutes.

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Rentals, Single Family, and Residential
  • Posts 756
  • Votes 1.2K

Avery Carl
Real Estate Agent from USA

replied over 1 year ago

@Jason Taliaferro to underline what @Austin Hair said, all you need to self-manage an STR remotely from anywhere in the country is a cleaner, a handy-person, and a smart phone. Managing STR's, while it does require a little work, is literally the equivalent of answering text messages a few times a day. Maybe throw a phone call in there every now and then.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 12
  • Votes 3

Austin Hair
Property Manager from Orlando, FL

replied over 1 year ago

@Paul Sandhu whats the catch? that seems too good to be true, every investor would be jumping all over that. what city are you in?

Rotate Log in or sign up to reply
user profile avatar
Check Rosette Top Subjects:
Tenants, Rentals, and Finding & Screening Tenants
  • Posts 3.0K
  • Votes 2.8K

Paul Sandhu
Investor from The worst town to live in, Kansas

replied over 1 year ago

@Austin Hair Google "worst place to live in Kansas" and Coffeyville was #1 in 2018 and 2017. This year we are #3. That's the catch. The catch is made up of high unemployment, drugs, crime, and generally a miserable town. In 2017 our per capita homicide rate was right behind Baltimore and Chicago. I don't even bother reporting stolen grills or mowers. Once I went in to a vacant STR and encountered an intruder on drugs. Another time I had a tenant die on me. Another tenant didn't show up for work the first day, his boss and I found him unconscious and unresponsive (overdosed). Another time some tenants asked me if I wanted to stick around for the 6:30 show. The tenants were 11 pipefitters. It was a lady they paid to umm, put on a show for 11 guys. I ran into the same lady in another house with 6 electricians.

Rotate Log in or sign up to reply
user profile avatar
  • Posts 2
  • Votes 2

Melissa Ford
Real Estate Broker from Nome, AK

replied over 1 year ago

I have a mixture of LTR and STR. There are some fabulous tax deductions available for STR that don't exist for LTR. They are a little more work but I offer a substantial deduction for 30 days plus and keep my minimum stay at 7 days. Most of my guest are local businesses who need short term housing for employees and contractors, but I will fill in the gap with my AirBnB account. It allows me to block off days. The fees on both ends are pretty high but they helped me get "established" and after 5 years only 10% of my guests come from there and the rest are word of mouth.

Rotate Log in or sign up to reply
  • 1
Related Resources Short-Term and Vacation Rental Discussion
Have Top-Notch Tenants? Here’s How to Keep Them
5 Essential Property Maintenance Tasks To Keep Your Rental in Tip-Top Shape
Rental Arbitrage: The Secret to Making a Fortune on Airbnb Without Owning Property
8 Reasons the Best Landlords Always E-Sign Rental Agreements
6 Tips for Listing Your Rental Property Online
Resources Read, see, and learn more!
Link Real Estate Investment Calculators
Link BiggerPockets Blog
Link Path to Purchase
Link Mortgage Loans
Link Find a Contractor
Link Real Estate Agents
Link Hard Money Lenders
Link Real Estate Listings

Top Contributors

Paul Sandhu
Paul Sandhu
The worst town to live in, KS
8.66
Score
John Underwood
John Underwood
Greer, SC
6.93
Score
Julie McCoy
Julie McCoy
Sevierville, TN
6.54
Score
Luke Carl
Luke Carl
Tennessee Florida
4.38
Score
Nathan G.
Nathan G.
Cody, WY
2.76
Score

Short-Term and Vacation Rental Discussion Trending Discussions

  • 1 Property, 3 Casitas... a good Airbnb?
    12 Replies
  • New Host: Air BnB or VRBO?
    15 Replies
  • How should we adjust our short term rentals in 2021?
    6 Replies
  • Newby to Short Term Rentals
    11 Replies
  • Investing in Tulum?
    12 Replies
Log in Sign up

Log in

Forgot password?

If you signed up for BiggerPockets via Facebook, you can log in with just one click!

Log in with Facebook

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Let's get started

We just need a few details to get you set up and ready to go!

Use your real name

Use at least 8 characters. Using a phrase of random words (like: paper Dog team blue) is secure and easy to remember.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.

Or
btn_google_dark_normal_ios Created with Sketch. Continue with Google

Why create an account?

Receive a free digital download of The Ultimate Beginner's Guide to Real Estate Investing.

Connect with 1,000,000+ real estate investors!

Find local real estate meetups and events in your area.

Start analyzing real estate properties, we do the math for you.

It's free!

Explore

  • Membership
  • Community
  • Education
  • Marketplace
  • Tools
  • FilePlace
  • REI Resources
  • Perks
  • Glossary
  • Reviews
  • iOS App
  • Android App

Company

  • About Us
  • Press
  • Advertising
  • Careers
  • Stats
  • Contact Us

Important

  • Editorial Guidelines
  • Terms of Use
  • Rules
  • Privacy
  • FAQ

Social

  • Facebook
  • Twitter
  • YouTube
  • Instagram
© 2004-2021 BiggerPockets, LLC. All Rights Reserved.