All Forum Posts by: Chris Dudek

Thanks for Sharing Nyat! According to the spreadsheet this is a condo, has it been easy to find condo's with associations willing to let you use these places as vacation rentals? 

Hello BP members. 

Does anyone out there have any advice or resources that would help determine the value of existing short term rentals or VRBO's? I was told a "general rule" was to never pay more than 10 times annual rents.  Thanks for your help.  

Hello BP Minneapolis;

Is there a BP meet up club in Minneapolis? If not, is there any interest? I am a newbie, but really like the professionalism and honest advice on BP.  If there is not a group it would be nice to have a bunch of like minded investors meet up in Minneapolis.  

Thanks Maura -  I looked up your properties, they look awesome. You did a great job decorating them.  I am leaning towards finding some properties that have great rental histories and reviews, great locations, but look dated on the inside. I think those might be better investments than the tun key and expensive properties.  Do you know of any resources (books, or websites) that focus on short term rental investments? Thanks again

Thank you all for your replies.  I agree with you on the return for the $255k isn't great. I am trying to think like an investor not an owner so I appreciate the feedback.  Is it completely wrong to look at it by saying I will only have to pay $255K for a $750K property, renters will pay the rest?  That was the way I initially looked at this investment, but I know there are more factors than that to look at that just that.  Thanks again  

Steven -

The property is on St. John in the USVI. Hurricanes are the biggest concern, but the building is all reinforced concrete HOA fees cover the building and home owners would covers the contents. I'm not concerned about lack of control because their is a long history with the current management company on the island and they already do a great job getting guests checked in and out. That expense was included in the previous numbers. Property values have skyrocketed in the last 10 years, but I think the value of the property will alway be closely tied to what revenue it can bring in.

Jeremey - Total expenses do not include debt service. Banks generally require 30% down on properties in the Virgin Islands, so about $225k down and about $2,500 per month mortgage payment. The property is a condo and part of a HOA, so insurance on the property is similar to home owners insurance. Also, there is some room for more rent revenue through increase rent to be more competitive with other similar units, and the current owner does not rent it much in June, July, August, because it is low season and he prefers to use the proper then. It was still rented a total of 277 nights last year. Thanks again for any help.

Here is an investment I am considering.  It is for a short term vacation rental property.  The owner provided me with all the numbers, but to save time I will just give you the basics.

Asking Price                       $759,000

Total Rental Income 2014   $88,302

Total Expenses              $49,350

Profit                         $38,952

Please share your thoughts or critiques.  Thank you for any help or advice.