All Forum Posts by: Trent Reeve

Quote from @Wayne Kerr:

I'm going to be honest here - if you're looking for a calculator to tell you what your expenses are then you likely don't know enough about what you're doing...

You need to come up with a list of all your STR expenses (this includes the cleaning fee since you are the one paying the cleaners!)

Then use pricelabs, airDNA, realtors/owners in the area (look up short term shop - they are experts in that field) to estimate your revenue

Now you can calc your profit since you have your revenue & expenses 

There's tons of different calculators out there...please don't be one of the ones that depends on a random calculator that can be put together in 10 mins to tell you whether or not to make YOUR investment (relying on someone else's calculator would be a BAD idea!). Make a spreadsheet and do your own due diligence based on YOUR SPECIFIC property

Thanks Jeremy. Yes I am new. I am trying to learn what things to look for as far as expenses and revenue and just gathering the info to make an informed decision on direction we’re considering.

I heard an episode a while back on BP, may have been a recorded webinar, and had a spreadsheet to help figure out the expenses. Plug in the numbers, yes, but guided and detailed expenses to consider before pursuing. 

At this point, flying blind, but guidance here has been helpful. I’ve run some numbers that I understand and believe to be close. Excited about the possibilities. But want to be real. So to analyze a deal, looking forward to learning from those who are actually doing it. 

I'm brand new to investing and planning on purchasing my first short term rental in Navarre, Florida. I'm have a really hard time running numbers to get an accurate idea of how much it will cash flow and it it would be a good investment to move forward with or not. I've used about five different calculators and seem to keep getting a wide range of numbers none of which I trust.

Anyone willing to look what I have below and tell me where I might be off?

Will there be Capital Expenditures for this condo in addition to the HOA fees and Quarterly assessments?

Navarre, Florida

Condo: Studio, 1 bathroom, bay view, fishing pier, pool, gazebo, boat parking, sleep 4

Purchase Cost: 290k

Interest Rate: 7%

Closing Cost: 3% ($8700)

Cap Ex: 10%

AirBnB Fees: 3%

Management: None (self managing)

Loan: 10% Down; Conventional Second Home

Property Taxes: $3388/yr (from county assessor's office)

HOA: $523/month (includes cable, trash, maintenance)

Assessments: $5600 (based on neighboring unit)

Insurance: $1800/yr (based on neighboring unit, condo covers exterior of property)

Internet: $55/month (Googled average; basic cable in HOA fees)

Electric: $131/month (Googled average)

Water: $25/month

Maintenance/Repairs: 1.5%/month (based on maintenance performed in 2022)

Gross: 43k (based on neighboring unit, is on par with the 75th percentile for AirDNA and similar properties on Rabbu)

State tourism taxes: $245/yr (based on neighboring unit)

BP Calculator:

Monthly cash flow: -$55 /mo

Income: $3,583 /mo

Expenses: $3,638 /mo

CoC ROI: -1.76%

Quote from @Trent Reeve:

Quote from @Dustin Taylor:

I am still coming across some great deals in the Blue Ridge market. Just like many other markets, some investors thought the STR strategy would work with buying any "cabin" in the mountains and only listing it on 1 OTA (AirBnB). This may have worked during covid but today you'll need to put some more effort into searching for a great deal, and picking an amazing property. I am a local Realtor in Blue Ridge and I personally would not buy just any cabin in the woods here. You need to stand out from your competition! I tell many of my clients NO to properties because they do not offer the WOW factors! Reach out to me to discuss details about the North GA market. There are few upcoming markets here I think would be beneficial for an investor to dive into!

 seems to me, in areas with so many rental properties, being able to "stand out" where everyone else is trying to stand out also would be extremely hard.

 And extremely costly (after you add all the extra amenities,) which would make it even more difficult to come out ahead, profit wise. Very good point, Trent! 

I am still coming across some great deals in the Blue Ridge market. Just like many other markets, some investors thought the STR strategy would work with buying any "cabin" in the mountains and only listing it on 1 OTA (AirBnB). This may have worked during covid but today you'll need to put some more effort into searching for a great deal, and picking an amazing property. I am a local Realtor in Blue Ridge and I personally would not buy just any cabin in the woods here. You need to stand out from your competition! I tell many of my clients NO to properties because they do not offer the WOW factors! Reach out to me to discuss details about the North GA market. There are few upcoming markets here I think would be beneficial for an investor to dive into!

I see Blue Ridge cabins as a siren call. Absolutely beautiful cabins, great views, and nice area commutable from Atlanta - but the market is glutted, and you can rent a 3 bedroom mountain view cabin there for less than a honeymoon loft in the woods 20 minutes from Gatlinburg.

Quote from @Trent Reeve:

Quote from @Bruce Woodruff:

@Sarah Kensinger I appreciate your hard work at getting all your stuff protected and I'm sure that you used the best people and all that. Also sounds like you know everything about the business there is to know.

Bet I could take all your stuff in 30 days......

 how does this help answer the question posed?

Just discussing the need for, and the security of, different types of Corporations and Holding Companies since the OP brought that up.

@Sarah Kensinger I appreciate your hard work at getting all your stuff protected and I'm sure that you used the best people and all that. Also sounds like you know everything about the business there is to know.

Bet I could take all your stuff in 30 days......

My husband and I are new to Bigger Pockets and have been wanting to own an STR and Bed and Breakfast in the future. We have goals of obtaining and running 3 STR's within 5 years or less as we both work full time, and I do real estate in addition to my full time job. We have a goal of buying a STR by the end of the year if everything goals well.

We have been looking at different properties such as cabins and homes in North Georgia that area close to wineries, outdoor activities, and state parks; as well as beach condos in South Carolina and Florida.

However, we are struggling with whether our first STR should be close even if the numbers are not as strong.  My husband is concerned about the distance and he is particular about maintenance work/ renovations and wants to be close where he can drive to check on the property.  I, on the other hand, am more about the cash on cash return and believe we need to focus on a good market as long as it is within the state of Georgia (we live in Savannah area) or within a 2 hour drive if out of state (like South Carolina or Florida).  

How did others start and did you buy a property that was close as your first STR?  Thanks in advance for your feedback!

How do you handle a guest who leaves the house a mess, smokes in the house and leaves the evidence when we have a clear rule of no smoking and enters a locked owners closet and takes items. We need one more 5 star review to get to premier host and based on the text message they thought house was lovely and had a great time? Do we wait for a review? Does insurance cover the extra cleaning costs or is this just part of it? How can I see the guests ranking in VRBO? Thanks from a Newbie!