STR: Where's my mistake in my numbers.
Hey guys,
I am looking at getting into the STR game in Galveston TX or Destin FL. The problem I keep running into is that I can barely cashflow with the numbers I've researched. I would love for anyone who is currently operating a STR to look at what I have below and let me know if I'm off somewhere with my cost estimates.
| Rental Income ($42,705.00/YR) | = | $ | 3,558.75 | |
| Expenses | ||||
| Cleaning | – | $ | 711.75 | 20% |
| Maintenance (Monthly & Cap Ex.) | – | $ | 533.81 | 15.00% |
| Utilities | – | $ | 302.49 | 8.50% |
| Property Taxes | – | $ | 325.00 | 9.13% |
| Insurance: flood, windstorm and homeowners = 4000/yr | – | $ | 338.08 | 9.50% |
| City HOT Tax (Galveston) | – | $ | 320.29 | 9.00% |
| AirBnb Fee | – | $ | 106.76 | 3.00% |
| Other (Beyond Pricing) | – | $ | 35.59 | 1.00% |
| Net Operating Income | = | $ | 884.98 |
At these numbers I am barely cash flowing if I bought a $200,000 house (and that's cheap).
Most Popular Reply
#5 Short-Term & Vacation Rental Discussions Contributor
- Investor
- The worst town to live in, KS
- 4,196
- Votes |
- 4,508
- Posts
#5 Short-Term & Vacation Rental Discussions Contributor
- Investor
- The worst town to live in, KS
Do the maintenance and cleaning yourself. 25 years ago I did maintenance on my LTRs to cut down being ripped off by appliance and other repairmen.
Replace a fan motor or capacitor in an exchanger? I do it for $50-$100. HVAC would want $300.
Replace minor parts like agitator dogs, toilet flapper, light bulbs, etc in 5 minutes. Appliance repairman would charge $100 plus parts.
I could keep going.
My wife didn't graduate high school. She had enough college credits that she didn't need to go her senior year. She graduated college with a 4.0. She cleans our STRs and we make more money than if she had a regular job and contracted the cleaning work out.