To Airbnb or Not to Airbnb
Hi all,
Newbs here. We have a TON of money in equity on our primary, want to get into RE. Our friends, many, have done the STR thing in Cape Coral and can't say enough good stuff.
The appreciation is there, the growth is there, the solid history is there, the STR market is booming.
However we are scared. It’s just all new. We do have a great support system there with experience so that helps.
How do these numbers look? It cash flows small but still flows, it’s the making use of our money that is appealing. How do our assumptions look?
My husband makes spreadsheets for a living if you can’t tell! Happy to share this one if that isn’t against rules.
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Quote: However we are scared.
I'm not your financial advisor, but perhaps you SHOULD be scared, especially if you are risking your home equity. STR's should be cash flowing A LOT, not just a little. First thing, since you are close with people who are successful in your target market, see if they will share their numbers with you. Find out why and how they bought where they bought. maybe get connected to others within their network, like mortgage lenders, handy-men, make ready services...etc. I'd say, be a quick study, ask questions, research carefully, and be slow to act at first. In our current RE market/macro economy I'd say there's no need to rush. And, if there are multiple offers...walk away. Its really easy to buy a house; it's much harder to buy one correctly.