Episode 080 - Are You Over-Improving Your STR? Why You Must Know Your ROI
SHOW NOTES & LESSONS
We are looking at a 2 bedroom/2 bath in Mesa close to everything.
Now, purchase the Airdna Data for your property and let's figure out the ROI for a Short-Term Rental.
Wait... 40% ROI sounds a little too good to be true. What did we miss?
So, the ROI on this property for a Long Term Renter is 22% and a Short Term Renter is 24%. That's a LOT of work for only 2% more on your investment. Figure out if it's worth it!
WHAT BOOKS, PRODUCTS, SERVICES, OR LINKS WERE MENTIONED...
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Recommended Article or Blog Post Related to This Week's Podcast:
What Is After Repair Value (ARV) in Real Estate? How to Calculate ARV—The Equation and What It Means to Your Profits
Get This Episode's Show Notes in a pdf form...
Show Transcript
[00:01] Over the last two...
Episode 067 - Interview with Napa Valley Chris (Young) on His $6k Airbnb Settlement - Part 3
SHOW NOTES & LESSONS
Part One of our interview with Napa Valley Chris, Christopher Young.
Links to his Facebook Page:
https://www.facebook.com/Napa-Valley-Chris-2271342579571610/
Links to the interview ABC News did with Chris:
Links to the story of this robbery:
Episode 066 - Interview with Napa Valley Chris (Young) on His $6k Airbnb Settlement - Part 2
SHOW NOTES & LESSONS
Part Two of our interview with Napa Valley Chris, Christopher Young.
Links to his Facebook Page:
https://www.facebook.com/Napa-Valley-Chris-2271342579571610/
Links to the interview ABC News did with Chris:
Links to the story of this robbery:
Episode 065 - Interview with Napa Valley Chris (Young) on His $6k Airbnb Settlement - Part One
SHOW NOTES & LESSONS
Part One of our interview with Napa Valley Chris, Christopher Young.
Links to his Facebook Page:
https://www.facebook.com/Napa-Valley-Chris-2271342579571610/
Links to the story of this robbery:
WHAT BOOKS, PRODUCTS, SERVICES, OR LINKS WERE MENTIONED...
Please use our Affiliate Links whenever possible and help support the show. Thank you!
...
Episode 059 - Addendums: What to Put in Them & Your Co-Hosting Contracts
SHOW NOTES & LESSONS
What Type of Things Go into an Addendum?
Title the Addendum to Link it to the Original Contract, Date, and attach to the original. State effective dates and any additional payments (or state the fact that there are none).
Define everyone involved and what roles they play. Make it crystal clear who you are, what you do, and who your guests are and what part they play in your business. Be clear in and make it understandable to those not in our business.
State clearly, in easy to understand language and using examples if possible, what each term is meant to do. You may wish to restate things in your lease that are remaining the same and things you are adding to or taking away from that changes the original terms of the lease. Terms usually add to your lease, like the fact that you won't be the main resident, but plan on using it to clarify what each party is responsible for and exactly what they have...
Episode 056 – Part Two of You Can’t Fix Noise & Other Things to Avoid When Property Shopping
SHOW NOTES & LESSONS
What you want to look for when acquiring properties for you STRs or your Portfolio:
Look for a Neighborhood that Looks & Feels Good.
Check it out at all times of the Day and Night.
#1 Thing - as always - Location, Location, Location!
How's the Parking? At night? I look for Designated Parking!
What to Avoid:
Noise! - Whether it's being backed-up to a busy street or barking dogs, noise is one of your worst enemies when it comes to renting out a property.
Bathrooms - Optimally, one bathroom for each bedroom. At the very least, no bathrooms that force you to walk through bedrooms. No good! Masters need their own bathrooms, always!
No converted rooms or quirky floorplans. A house has to have flow & it has to be re-sellable. You have to be able to sell fast and quirky floorplans and converted rooms JUST DON'T SELL WELL.
Stairs should be wide and clear, and everything should be standard. Steps' risers...
Episode 055 – Part One of You Can’t Fix Noise & Other Things to Avoid When Property Shopping
SHOW NOTES & LESSONS
What to do when the neighbor's dog won't stop barking...
First, knock on your neighbor's door and try to talk to them.
If they aren't home, leave a note. Give them time to fix it.
Check your HOA or city ordinances. Follow their guidelines, which usually asks you to contact the police or a local authority, make written notices, keep a (video) log, and follow up.
Reminder: Do your due diligence before signing on the line!
That airport didn't just go up overnight and that dog has most likely been there the entire time. Make certain you do your due diligence BEFORE you rent or buy a property. Know your neighbors. Knock on their door. Ask questions like, "is there anything you wish you were aware of before you bought your home? Is there anything you think I should know?
Michelle has an entire list of what type of house not to buy!
We split this episode into two parts because Michelle began going into the Types of Things She Avoids when Purchasing or Renting a...
Investing in Out-of-State Real Estate
Investing in Out-of-State Real Estate
Buying real estate rarely goes smoothly, and buying property out-of-state has even more potential challenges. If you are planning on renting property out-of-state, there are similar challenges involved. However, either are entirely manageable if the potential trouble areas are planned for and addressed. Many people rent and own property out-of-state, and you can too.
Also, whether you decide to buy a property or rent it, let’s just call it what it is: Controlling the Property. Whether you rent or own, you are “controlling” the property in order to run a Short-Term Rental Business out of it and you must be able to “control” the use of that property within the eyes of the law.
Reasons for Buying Out-of-State Real Estate
There are several reasons why you might consider owning or renting a property in another state. Maybe local real estate prices are simply too high...
Episode 047 – Lessons from the California Exodus
SHOW NOTES & LESSONS
OVER 5 MILLION PEOPLE HAVE LEFT CALIFORNIA NOW DUBBED "THE CALIFORNIA EXODUS"
Although people are moving into the state while others are moving out, Cali has still lost more than 1 million people and the population continues to shrink.
Who's moving in?
Those making $200,000 plus per year with higher education from tax-burdened states like New Jersey, New York, and Illinois (also seeing massive Exoduses).
Who's moving out?
Those making $55,000 and below with no college education.
Where are they moving to?
States with much more affordable housing like Texas, Arizona, Nevada, and Oregon.
CALIFORNIA HAS 5 OF THE TOP 10 MOST EXPENSIVE RENTAL MARKETS
What a One Bedroom Rents for in:
Los Angeles $2249 month
San Francisco $3400 month
Las Vegas $925 month
Phoenix $945 month
What a Two Bedroom Rents for in:
Los Angeles $3200 month
San Francisco $4500 month
Las Vegas $1122 month
Phoenix $1137 month
...
Episode 046 - Why You Shouldn't Treat Your Short Term Rental Like a Long Term Rental
SHOW NOTES & LESSONS
COMPARE INCOMES FROM A SHORT TERM RENTAL TO A LONG TERM RENTAL
2 Bed/1 Bath
Long Term Rental
1 Year Lease
$1200 month
2 Bed/1 Bath
Short Term Rental
Daily Rate
$87 per night
82% occupancy
$2140.20 month
2 Bed/1 Bath
Short Term Rental
Airbnb's Weekly
10% Discount
$609 for 7 days
-$60.90 discount
$548.10 per week
rent out 3 times
$1644.30 per month
A Loss of $495.90 mo
or $5950.80 per year
2 Bed/1 Bath
Short Term Rental
Airbnb's Monthly
28% Discount
$2610 for 30 days
-$730.80 discount
$1879.20 per mo
100% occupancy for
$1879.20 per month
A Loss of $261.00 mo
or $3132 per year
Use Vacancy Instead
Short Term Rental
Our Monthly
18% Discount
$2610 for 30 days
-$469.80 discount
$2140.20 per mo
Same as your original Single Day!
WHERE DO I FIND MY PER DAY RATE AND OCCUPANCY RATE?
If you've been a host more than a year, use last year's numbers.
If you haven't been a host for a year yet, then use...
