*This link comes directly from our calculators, based on information input by the member who posted.
I am seeking an investor or investors who are looking to place their money in a deal that has been calculated using conservative numbers with great earning potential. Please contact me for further discussion. Thx for any feedback as well.
In addition to what @Peter Lim asked, coming back to the question of "have you confirmed that it is legal to short-term rent the property?" - I think that without being able to answer "YES" to that question, it would be too risky for external investors to jump in the deal.
The "deal" is all about the huge numbers you're projecting and that can only be achieved (assuming your projections are accurate) in the short-term rental model. If you're inviting external investors to consider your deal, I would make sure I could answer the question of "is it legal to operate in the model that I am pitching?"
I'm a numbers person and those numbers look fantastic on paper. Not sure if on paper is reality.
The daily rate of $250 might be okay for Friday and Saturday, but not sure if applies to Monday thru Thursday. The strip hotels greatly reduce their rate Sunday thru Thursdays, as one can get room rate of $50 for MGM. The strip greatly increases room rate to $200-300 for Friday and Saturday.
Also, where your located, North Las Vegas is not close to any major casinos. If your house was in Summerlin, but far away from strip, still might be possible due to nice area.
Hi terry, are you comparing what I can fairly charge for a 6 bedroom house which can accommodate 12+ guests)to a studio or suite hotel room(max occupancy of 2) on the strip?
As far as my location, it’s only a 10-15 minute drive to downtown and 20 minutes to the strip. Some other features/amenities that my guest can do at my property that they can’t do at any hotel are: have pets and walk them right by the house, 421 legally, BBQ and have 20 friends and family over to celebrate a special occasion(way cheaper to do a celebration at my property as well), full kitchen access(saves even more money, especially with a family or multiple people in a group).
I’ve seen other comparably sized properties on Airbnb charge this much and much more then my averaged out price of $250, so I think it’s a very reasonable benchmark for me to run my numbers on. The only thing I may adjust my overall numbers on would be my vacancy, which I admit could be as low as 40-50% on the slower seasons. I’ve accounted for those slower periods with other marketing sources to assist in keeping my vacancy averaging around 20% or less, as well as adjusting my pricing accordingly for supply and demand. Hope this clear up any issues that you mentioned in your post.
I'm an real estate investor and owner of multi's in Las Vegas. I heard of AirBNB near the strip, but not as far as North Las Vegas. First, those that do not know the difference between the area north of Las Vegas and the city of North Las Vegas, are not familiar with the area. You are from North Las Vegas, so you know the difference.
I'm looking at the reason why someone would use AirBNB in Las Vegas...............and it comes down to being near the strip. You said your location is 20 minutes from the strip, sounds like 20 minutes without traffic. Maybe 40 or more with traffic. Is your target customer driving into Las Vegas or flying? If flying, then add cost of rental car. What are they coming into Las Vegas for? wedding, rodeo, bachelor party, concert, etc?
All the above items center around the strip. Heck, Las Vegas would not be Las Vegas without the strip. So i'm saying that Las Vegas in general centers around the strip. Not sure if AirBNB can exists outside of the strip.
I will be catering to those who drive in as well as those who fly. Think about how many rooms a large family or group would need to book on the strip, then they still can’t stay next to each other in many cases. You didn’t address the pet issue I brought up. There’s no getting around folks that just couldn’t afford to book a bunch of rooms on the strip (if the rooms are even available at the right time for their occasion). I haven’t even mentioned when huge influxes of people come to Vegas for events like life is beautiful (downtown), EDC( up north, so I’m closer then any strip hotel). Hotels are even nickel and dining their guests with paid parking in many cases.
Those listings that are closer to strip tend to list there minimum price and as you add more guests the price goes up above my price point. Also, the demand still out weighs the supply. Which means that those closer listings will get booked up and I’ll still have a customer base looking for what I am offering. Demand will only keep getting bigger as we bring things like football to town and more entertainment events etc. I really do appreciate you bringing up these thought provoking issues, which allow myself and anyone else who hasn’t already put thought on them to make plans to address them👍🏽
Isaac - you plan to have someone live on site at the property? Are they living inside the home itself, or in a detached guest house / casita kind of situation? Do you think that will affect (lower) the rate you can get per night if you have to list the property indicating that someone will be on site with your guests?
He will be staying in one of the bedrooms inside the home. I think it will potentially reduce my total cash flow, but I’ve adjusted my marketing to compensate for the added benefit and disadvantage of having a live in property manager. I can now target those seeking private rooms, shared rooms, extended stay guests 30+ days. The property will have less expenses for upkeep with an on-site manager upholding house rules (so definitely won’t be having house parties and drawing negative attention from neighbors or law enforcement)and taking care of small fix problems that arise. Only time will tell how much this new approach will affect the overall cash flow, though I’m comfortable saying that it should definitely be in the positive!