All Forum Posts by: Tim Schroeder

i have always shared my calendars but mine don't show cleaning days they show everything. How did you make it show "cleaning". Here's what mine look like

Besides theft, do you really want calls from people whining that they can't get their phone to pair with your soundbar? Ugghhhh.

Good info @Lane Kawaoka however my 40% ROI in the Smoky Mountains of Tennessee shows it can be done! :)

Keurig coffee machine, gourmet teas, CableTV with lots of good channels, Roku with Netflix, welcome baskets with chocolates/peanuts/mints/etc. Pillow chocolates.

@Matthew Lucas The thing with @Luke Carl is, well, let's just say patient he is not. But experienced he is. Just ignore the cr*p he dishes out on occasion and listen to his real advice. He's good. His wife happens to be my RE agent. He's a great resource - when he's not chasing off newcomers ;)

Now @Paul Sandhu is a regular here too, and does really well in a niche market unlike most others. I think what he meant about taking 12 months to get 6 months is that his renters don't pay on time, but I could be wrong, LOL. And Paul, you have to admit that Luke had it coming....  :)

@Matthew Lucas, what I would say to your question is that there is no set answer. Everybody has different expectations. Since you're clearly just getting started I'll give you my own baseline, and that is I always compare my expected ROI's with what I can get in safe index fund investments that require zero effort and are very low risk. The S&P index funds historically return an average of 10% (even with occasional recessions). I consider them zero-risk when looked at long-term. And they compound automatically, usually. So in the STR space, which involves work and risk, how much more do I need to make? Personally I want 2-3 times that, minimum. Otherwise, go for that mutual fund. I cannot for the life of me see why anyone would go for a 10% ROI per year, unless they're in a market that is appreciating. But most people would agree that in the STR market, appreciation is gravy, it's not part of my calculations AT ALL. I'm all about income. When I worry about recessions, I don't think about the value of the property dropping (like fix and flippers do), I worry about how much the recession will reduce vacation travel and eat into my income stream. As a side note, I want to be able to have my income HALVED during a recession and still break even with the mortgage and upkeep. If you have a mortgage and you're only making 10% ROI and a recession hits, you'll probably lose the property because when income drops into the red you'll get tired of paying that mortgage and since property values have also dropped, you'll sell at a loss or just let the bank foreclose. So, make sure that income stream can survive a large drop during a recession.

There are two separate discussions going on here - The quality of the deal/cash flow/whether to sell, and whether Evolve is a good thing or not. Regarding Evolve, if he can't self-manage (and many can't) then Evolve is not a bad option, especially compared to more expensive full-service PM's taking 20-30%

I assume you paid cash and you have no mortgage since you said you were "all in at 600k". Assume that 60k gross nets you 30k. That's 30/600=5% ROI. You can easily make 5% in an index fund with less risk and less work. Remember that you could be investing that 600k in other places. If you had a standard 80% 30-year mortgage, that would be 30/120k = 25% ROI which is a respectable ROI. For what you put into that place (600k) you could have FIVE properties at 120k down each. Theoretically, anyway. Of course, your mortgage payment would eat into that 30k profit, and I'm not accounting for many other factors so my numbers are not accurate, but you get the idea. Leverage your capital, don't leave it tied up in one place. It makes you think the cash flow is good --- and it is --- until you divide it by the money you invested, at which point it may look inadequate.

The other thing is 880/600 = 146%. That's a sweet profit most people would die for. Take it and go buy another deal. The market is likely at its peak and there isn't a better time to sell. There is likely a recession coming in the next few years.

Having said all that, this is early days for you. Wait and see how your 12-month numbers look. 20k for 33 days is impressive, but how will that pan out over 12 months?  You really don't know yet. That was probably ski season, how will you do in summer?

I'm in Castle Rock, CO, btw. I have 2, soon to be 3, vacation cabins in TN doing very well. But I want something in CO that I can take the family to now and then. Breckenridge has been on my radar for a while. Would love to talk more with you, trade ideas and spreadsheets, who knows, maybe even go in together on something. I've been toying with partnering with other investors to go after bigger projects.

Also, GOOD JOB!  Everybody here has a lot of (constructive) criticism, but you've still done a good job turning a fixer into a money-maker. Don't take our suggestions the wrong way. That is a hellofa success in any case.

Any day now I plan to put out a basket of chocolate, peanuts, candy, pillow chocolates, shampoo, etc. I've been planning this for a year and a half  :)

 @Thomas Bass I have a large 6BR in @Luke Carl area that I bought for $500k (although that same cabin would cost you $600k now). I grossed $135k last year (incl taxes & cleaner fees) and pocketed half of that as profit. My occupancy is around 80%. But that's because larger cabins like that don't rent 1-2 night impulse-stays, so I end up with a lot more gaps than the 1-2BR's. But I charge a lot more per night, so I still pull in great revenue. Lucas likes the smaller ones, personally, I like the larger ones. Fewer turnovers, less problems). Both systems make money. I also have a 4BR that didn't net enough so I just sold it for a 50% gain in one year (it was a foreclosure in bad shape) and am going to buy another big one. I will post some typical monthly expenses when I get home tonight.