All Forum Posts by: Terri-Leigh H.
Terri-Leigh H. has started 14 posts and replied 116 times.
Post: To Airbnb or Not to Airbnb
- Interior Decorator
- Denver
- Posts 119
- Votes 47
Quote from @Matt Dombrowski:
Hard to say about income without knowing more about the property but off season might be a bit high. Bedrooms? Pool/Amenities? Canal? Gulf access? For a STR in Cape Coral I assume there's a pool (and if not adjust income numbers downward appropriately) but I don't see a pool maintenance fee which will run you ~$80/mo. Management fee seems low. 8% is fine for long term rentals but quotes I've gotten for STR managers are anywhere from 10-25% depending on how full-service you want them to be. Repairs estimate seems a touch low...some people like to do 1% of purchase price ($333/mo) or 5% of gross income (~$250/mo). I don't see any reserve for CapEx. Insurance seems low with current rates and property taxes will be higher 2nd year after re-assessment.
Thank you! This is very helpful!
3 beds, 2 baths, really nice with pool and large lanai, in the southern western and eastern tip of the Cape. From our network of 8 STR owners we are actually lower during the high season than they are for the same, they are at 300 per night with almost 100% occupancy. We are using a friend for maintenance including house keeping and pool, which is why it is much lower, they are a management couple and offer at 8%. Good to know on repairs. Insurance is correct for the specific property we are looking at, not in flood zone. Good to know about taxes, these are the prices after assessments just paid, but I will look into that!
Post: To Airbnb or Not to Airbnb
- Interior Decorator
- Denver
- Posts 119
- Votes 47
Quote from @Gene Livingston:
Quote: However we are scared.
I'm not your financial advisor, but perhaps you SHOULD be scared, especially if you are risking your home equity. STR's should be cash flowing A LOT, not just a little. First thing, since you are close with people who are successful in your target market, see if they will share their numbers with you. Find out why and how they bought where they bought. maybe get connected to others within their network, like mortgage lenders, handy-men, make ready services...etc. I'd say, be a quick study, ask questions, research carefully, and be slow to act at first. In our current RE market/macro economy I'd say there's no need to rush. And, if there are multiple offers...walk away. Its really easy to buy a house; it's much harder to buy one correctly.
Thanks Gene, I really appreciate your time and insight. We are in close contact with their network. Which is why we have property management at a much lower rate. I have not asked their numbers as if there is one thing ive learned from BP its that everyone's number are unique to them. I thought since we are essentially having someone pay off our assets and we are in an area of decent appreciation, we could cash out in a refi and pay off the HELOC, that this might make sense. Perhaps not… Using the HELOC with the high assumed rate (it'll be variable after 18mo, it is 3.5 now) is probably what is killing our cash flow but it is also our only option for 20% right now. I will say that the amount of HELOC we are looking to use is about 1/5 of the equity we have in our primary.
Again, thank you for your time!
Post: To Airbnb or Not to Airbnb
- Interior Decorator
- Denver
- Posts 119
- Votes 47
Quote from @Matt Dombrowski:
Not sure if I'm doing something wrong but image is too small to see any numbers for me :)
Post: To Airbnb or Not to Airbnb
- Interior Decorator
- Denver
- Posts 119
- Votes 47
Post: To Airbnb or Not to Airbnb
- Interior Decorator
- Denver
- Posts 119
- Votes 47
Hi all,
Newbs here. We have a TON of money in equity on our primary, want to get into RE. Our friends, many, have done the STR thing in Cape Coral and can't say enough good stuff.
The appreciation is there, the growth is there, the solid history is there, the STR market is booming.
However we are scared. It’s just all new. We do have a great support system there with experience so that helps.
How do these numbers look? It cash flows small but still flows, it’s the making use of our money that is appealing. How do our assumptions look?
My husband makes spreadsheets for a living if you can’t tell! Happy to share this one if that isn’t against rules.
Post: Want to connect with Dayton, Cincinnati, Indianapolis investors
- Interior Decorator
- Denver
- Posts 119
- Votes 47
Hey Nick, my hubby and I are newbies and are looking to get our foot in the door, I would love Florida BUT my brain is saying Indianapolis for simple ROI from my research. Any advice appreciated!