All Forum Posts by: Scott K.

I run pretty large houses, 6 bedroom, 4000 sqft. investment cost was about $190k. They profit about $60k after everything. Revenue $125k. Not including major repairs, since we did all those with our investment cost. 'cash flow' means nothing by itself, it's more a question of, what is the Cash on Cash return %, and is it worth it to you? For instance anything above a 20% CoC, is probably good for an STR, but if it's only $10k a year, it's still probably not worth it, because the amount of work for a smaller house is pretty much the same as a larger house. (although large groups do tend to party, and do break things... so your mileage may vary)

This makes no sense. What you're doing is assigning them more value than they have, but in realit they are a 'management company'. They typically get between 10%-25% of revenue for managing your property. That's it. You should own the asset outright, and simply hire them like any other business you'd hire. This is what 'evolve' does or any of those other ones.

To add things that haven't been said:

Airbnb and vrbo can be very regional. Some places lots of people use VRBO, other places lots of people use Airbnb.

VRBO Guests I've found to be way pickier and fussier than Airbnb guests. Maybe because they're older? Maybe because they bring their family? No clue.

There's really no downside to having both. Most automation platforms support both by now and sync them easily. Additionally if you get banned or get a few horrible reviews on one platform, you will always have the other to back you up. Last summer airbnb blocked a stay during halloween weekend because, they said 'no parties allowed!' when it was a family of 6 people coming to stay. Airbnb is run by morons. I got a booking 3 hours later on VRBO.

I got invited a year ago when they started. Never bothered. I don't spend my time trying to convince other people to become airbnb hosts. Seems like a lot of hoops to jump through just to get a higher referral bonus.

I'd suggest waiting 6 months for prices to calm down. It's a tough market if you're new to it. Things are inflated about 30 percent over last year. 

If you want the rent it crowd, go on fb for the group Airbnb automated. (or something like that) you'll hear plenty of horror stories or examples why its so difficult to do. But there are also a few guys who claim to have 300+ units. So who knows. Pretty much everyone here is a traditional investor and owns. 

I own 4 properties in the Poconos. I'd never buy a lakefront. I'd also not buy in a gated community. Overpriced, and too many guest issues getting in. Hoas are constantly screwing us owners and were fighting back. Currently involved in 2 communities with issues. You need a lot of cash for furniture, and rehab. More than you anticipate. Make sure you have excess capital! Good luck. 

Given your brief financials... don't sell it.

You're making $8k a month? That's almost $100k a year. If you stand to only make $30k profit by selling it, compare that with how much profit you make from that $100k a year. Then estimate how long it will take to get back to that kind of profit.

That being said, it would go towards a good cause, and you should be thinking about long term risk. Who knows if the oil industry will be around in 5 years in your area. You know way better than we do about this risk.

The last thing to consider is - do you have an immediate use for that $45k? Would it just sit in a bank? Stocks? Or do you have something better in mind.

Seriously. Do 1 business the right way. If you aren't making enough money on that business, don't try to stuff a 2nd business on top of it. You'll half *** both. Only whole *** one business at a time until it's perfect. 

Poconos is a hellscape for buying properties, especially STRs right now. If you don't know what you're doing, I'd stay away from the market for 6 months until it cools off or you'll buy something you regret. Most places have 20-25 offers on them, and are going for about 30% higher than last year. There are a lot of short-term rentals coming onto the market from people who failed and gave up. Then they get bought in a week by someone else who has never run one before.