All Forum Posts by: Chris Cantrell

Hi All,

I am building up a short term rental portfolio. I have seen various posts praising and critiquing different STR revenue estimators (Airdna, Mashvisor, etc.)

I am getting some value from Airdna but there are specific recurring issues which leave me confused. Curious if anyone else is encountering.

Common "error":

Stats from Airdna: 

  -Property Average daily = $120

  -Occupancy = 70%

  -Annual Revenue = $20k

You would expect $120 x 365 x 70% = Annual revenue however it calculates to ~$30k (not $20k) AND this is supposed to include cleaning fees.

This disconnect is present on way too many listings to mark it up to "calendar is mostly blocked."

Either Airdna is using hidden assumption or providing extremely poor data.

How exactly is their revenue calculated? 

Thanks!

-Chris

Airdna is either super wrong or has unstated assumptions. Every listing on Airdna has the following info...

1) Annual Revenue

2) Occupancy Rate

3) Average Daily Rate

You would expect Annual Revenue = Occupancy Rate * Average Daily Rate.

However this is almost never true and technically Airdna is including cleaning fees in the revenue! (should make it higher)

For example (and this is not an outlier) Revenue = ~$20k, Occupancy = 75%, and average daily rate = $110.

$110*75%*365 = $30k estimated revenue.

Listed revenue is $20k. This is a $10k+ disconnect.

The basic stats seem wrong. Am I missing something?

All!

Looking at investing in Memphis as an out of state investor. Have a $200k cash for BRRRR.

Currently living in owner occupied Duplex in Pacific Northwest

I am targeting purchasing 5-10 SFH/MFH over the next year near downtown Memphis. Also, will be analyzing Airbnb income vs traditional rental.

I am open to partnering on deals if it makes sense.

I appreciate any and all advice on Memphis and could DEFINITELY use referrals (see below) .

Referrals Needed: 

1) General Contractor

2) Real Estate Agent

3) Broker

4) Property Manager

Cheers,

Chris

Hey Shane,

I actually don't have much to contribute to this list but I wanted to thank you for posting your list. It was quite helpful!

-Chris

I am planning on holding for the long term. It is a 30yr note.

Hello,

I am selecting my financing for my first duplex. Currently my best option is 4.5% with all lender closing costs waived (due to my company relocation package).

Here is the question. If I go with 4.625% I can get a credit of $1100 and 4.75% will get me a $2400 credit. I am looking to purchase another property in the near future and have some other business ideas so cash in hand could be valuable in the future. Going from 4.5% > 4.75% increases the monthly payment by ~$20

What decision would you make?

I have located a property which fits my criteria and I think I can get the owner down from 325k to 300k.

One possible issue is that I will be travelling for a month (out of country) starting Sunday. I want to be present for the inspection, however my attendance is impossible.

As a first time buyer, I am concerned that I will miss valuable experience by not being present at the inspection.

I would appreciate any tips/concerns for closing on a property remotely.

I am looking at purchasing a property with a large mother-in-law suite. The property is not currently zoned a multi-family, however I see in the market that many people rent out their MIL suites.

It is stated on the MLS that this MIL unit is usually rented out, and I see evidence that it is a common practice in the area.

Should I go for it? I am only interested in the MIL suite for rental income.