All Forum Posts by: Sofia Sharkey

@Joe S. Not very accurate in my experience. I have used Airdna to analyze the Kansas City market and also Utah markets and it’s never been close. I do my own analysis and it’s been spot on (I check it with my own rentals and also other management companies in the areas who can give accurate comps)

@Michael Baum thank you for informing me on that topic. That’s crazy!

Following thread. @Tom Sharkey ^ you would be interested in reading this.

@Jordan Brooks hi Jordan,

I started doing short term rentals a few years ago and have loved the arbitrage model. It helped me get started in the industry and it has generated cash flow that allows me to grow my business in other areas.

I recorded a podcast specifically about how to do arbitrage the right way by being transparent with the landlord and providing value. (Str success stories episode 72, https://podcasts.apple.com/us/podcast/short-term-rental-success-stories/id1457263788?i=100048728161)

While arbitrage has worked well for us, we only have two properties under this model because we are aware that we are assuming all the risk. We pay for the rent, we pay for the furniture, we pay for all the expenses associated with it. We don’t want to be over leveraged like so many others who have rented 40+ units and when times are hard, they can’t pay rent.

For this reason, it has to be a really great deal for us to take a property in arbitrage. We prefer to buy or manage.

As long as you understand the risks and prepare for them, it’s a fine model that can help you get some cash.

@Michael Baum STR guests are not tenants. They don't squat because you can kick them out since they don't have to go through an eviction process. That's at least for many states when the stay is under 28 days, I have no idea if this is different in Cali.

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $182,000

Contributors:
Tom Sharkey

Bought this home in a trendy area of Kansas City off of the MLS with 0% down and a 3.75% interest rate. This was our primary residence and we used the VA loan. Spent about 10K on furnishings and turned it into a cash flowing short-term rental.

How did you add value to the deal?

Turned it into a short term rental (airbnb)

@Dave Poeppelmeier

1. Figure out if it’s legal in your area and your specific unit

2. Call str management companies in the area, they can give you more accurate comps.

3. If that doesn’t help and you want a true market analysis to see how much that place can make as a str, send me a DM!

Hope it helps and good luck!

There is a podcast here in bigger pockets about a lady who chooses college towns for her short term rentals. She has several and is an expert in that arena. I would find the podcast, look her up, and ask how are STRs doing in college towns during the pandemic. That should help you with your decision because I know in my area all colleges have gone virtual so I would not be investing by a college right now. Things will change again but for immediate cash flow, I’m not sure. Best of luck!

@Connor Hogan in addition to what Boris mentioned above, how much do you know about Airbnb?

Many people pay an expensive price tag for not doing research prior. For instance, will you have that place insured for vacation rental or rely on the host guarantee? If relying on Airbnb, do you know to process claims in case of damages (it happens). Just make sure you cover your basics, there are many nuances and figuring it out takes time. Good luck!

@Tom Sharkey following ^