BUILDING TWO

A) Previously I posted a projection for a $135,000 pair of townhomes (BUILDING 1), which came to about 34% annual return on the value of the building when rented as a nicely furnished pair of townhomes.  It is my belief that STR is a fools errand in most parts of the country and getting worse each year as more lemmings jump into STRs.  These townhomes are in a small tourist town.

B) Now I am posting a projection for a MFH (5 apartments, 2 commercial spaces).  The building itself cost me $280,000. The raw rent for the 7 spaces is approximately $85,000.  The 5 apartments (See below for my LTR to STR calculations) adjust to approx $90,000 (no PM) to total $110,000 for the building.  Or a 39% annual return on the entire building.

And each year, there is more STR competition and less LTR competition here. The belief that STR is 2-3X LTR income is a complete fantasy, IMO.

CONVERTING STR TO LTR INCOME FOR ONE UNIT (MY TOWN)

 Airbnb & VRBO estimated my earnings from a 2 BR 1 BA apartment around $17,000 annually. Using my STR to LTR converter (credit card fee, self-employment tax, software, OTA fee, paying heat/power and wifi, higher insurance cost, linens, coffee setups, much worse if PM, etc etc) which I say is 25-30% minimum. With PM at an additional 30%, it is terrible

--> then $17,000 becomes about ... A) $12,000 without ... B) $9000 with a PM.
--> i am renting the same as a furnished apartment (LTR) for $225 a week which is almost $12,000