How to Analyze a Short Term Rental Real Estate Investment (Step by Step Guide for Beginners)

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Tony's Instagram: / tonyjrobinson
Sara's Instagram: / sararadrobinson

[@BlackEquity]

Awesome breakdown! Purchasing my first Airbnb this year and your calculator has been so helpful in analyzing properties! Keep going guys.

[@fouedbenhadjali7816]

Love what you do guys … very well explained and entertaining

[@movingtothemainline]

You're THE BEST, Tony. Thanks for sharing all of this info!

[@romeovasquez6302]

Love it!!! Thank you for this awesome video!

[@larrywald8899]

So thorough, You rock!! Thanks so much for the calculator as well.

[@jameskennett9973]

Great info, thank you so much for sharing! Will definitely use this to analyze properties.

[@ferlanlebrado5000]

Love the video editing! Very professional!

[@CoachKenCanion]

Dude, I started following yall because I want to be in this busiess. Yall do a great job. I am learning. Trying to figure how to start

[@ntwynn]

This is your best video my dude. If you could do more of exactly this that would be amazing!

[@joelacroix6224]

By far one of the best videos on the subject i've seen

[@yeseniasplace]

Omg! I was just asked to look at a property to see if it has potential and when straight to your youtube and found this video!! Thank you!!

[@Ldogg0023]

Seriously great video. I appreciate all the info you are sharing.

[@DanKPhotography]

Absolute killer content right here! Thanks for sharing the analysis calculator with us!

[@TheRealEstateRobinsons]

Thanks so much!

[@korniciacc18now]

I totally agree on the calculation. That is abhuge gold nugget. Many charge for such information. I know when I make it wont charge for things because why? If im making enough miney why do I need to take others money for information i received freely once upon a time.

[@patricewilliams5653]

Amazing video! Thanks for sharing. Saw your video with Rob this morning and have already watched 3 of your videos. You and Sara are killin it!

[@TheRealEstateRobinsons]

So glad you’re enjoying the content! Thanks so much for subscribing 😀

[@hsloved1603]

EXELLENT, EXTREMELY INFORMATIONAL, EDUCATIONAL AND TOTALLY AWESOME PRESENTATION..ONE OF THE BEST I HAVE COME ACROSS. THANK YOU!

[@TheRealEstateRobinsons]

Thanks so much!!

[@RidlysEmptyNetter]

Great video...really well explained! Thanks for the valuable content.

[@kamicamille]

Great video! Very informative and much appreciated

[@chriswebb4797]

Great video and thanks for the spreadsheet.

[@sirishakusuma]

Thanks Tony. This is amazing. I m falling in love with your content. Amazing content!

[@TheRealEstateRobinsons]

Thanks so much!

[@rickymagicanada]

Fantastic content, thank you Tony

[@BillyBob-bv1bk]

Thank you so much you won a new subscriber!

[@bminsk]

Great video - thank you!

[@sharonbeatty8047]

Thanks. Good info. I've been trying to get my husband interested in rental properties that we can use as an STR most of the year. Of course it has to cash flow and this was a great description for how to figure it out

[@TheRealEstateRobinsons]

Glad it was helpful!

[@anthonymg73]

Thanks man. Great info! From one Tony to another. Loving the vids.

[@TheRealEstateRobinsons]

Glad you enjoyed it!

[@Blestmama7]

Great information! Thanks for sharing ❤

[@alexapalmer935]

Very Helpful, thanks.

[@bonnieplawman2353]

Fantastic! Thank you

[@prasi23]

Great content & helpful tips. I am new to this as well & love to start something soon.

[@brianwilliams3597]

Very helpful, Tony. Thanks for making the calculator available also. Grateful. - Brian

[@TheRealEstateRobinsons]

Glad you enjoyed it!

[@mram7715]

Hi Tony. Can you talk about how to best insure your short term rental for liability purposes as well as your advice on LLC’s? Thx

[@cburgz3697]

great content man, thank you many times over

[@TheWanderingFirefighter]

So helpful. Thanks man.

[@chillguy2758]

Best channel ever!

[@tsukiwibeauty5240]

Thank you for the calculator ✅

[@erickdecasas5550]

Súper helpful, thank you!

[@Obiejax]

Thanks for the spreadsheet and info!

[@TheRealEstateRobinsons]

Glad it was helpful!

[@chart6890]

Great video and thank you for providing your analysis tool. Appreciate you sharing your learnings! What types of lenders do you find are best to go to for Vacation Rentals?

[@EmmanuelIkoe]

Great and valuable insights

[@Hotdads1]

Thank you for doing this!

[@TheRealEstateRobinsons]

Of course! Hopefully it was helpful!

[@MrAzizisse]

that was a very usefull practical real example demonstration . thanks for your video

[@DanielWestCoast]

Ijust want to say thank you man.. i am out to start my journey in this soon and im just really excited about it all. Hope to catch on fast cause this seems like alot of fun. Definitely going to be watching all your videos. Ireally love how thorough you are at explaining in detail. Very easy to digest for the rookie/beginner. If you have any other resources that you can recommend where ican learn more of this or just make like some courses thats really "beginner friendly" and i will buy it as im sure others will to. Thanks again for the content, stay blessed bro 🙏🏽

[@TheRealEstateRobinsons]

Thanks so much! So glad you enjoyed the video!

[@cyrusjulian187]

New subscriber here. Great info and got some new insights. Two notes though that I might question: 1) regarding insurance, I trip out on potential emergencies that could end up being huge liabilities so I’ve been looking at proper insurance which I’ve heard can be very expensive so that insurance figure would be a lot higher. Second, I would use a 1.25% tax estimate as the taxes will be reassessed when you buy the property. Apologies in advance if Zillow does that already but I wasn’t sure if it was doing that based on asking price or the existing owners amount. Thanks again

[@Friction-Jewelry]

New subscriber, sorry for all the questions! - If price labs tells you average occupancy in your area of interest (JT here) is 50-60%, why use 80% in your analysis? seems aggressive, esp coming off 2021.

[@B3GR8T]

@therealestaterobinsons

[@manyourcoolchris]

Super helpful thank you

[@Mashvisor]

Great analysis!

[@NickinNashville]

this was fantastic

[@ryhack1000]

Good stuff. Thanks

[@cl94501]

This video is super legit. Excellent for a newb like me.

[@millerjarrell]

Great video! Occupancy tax is another big monthly expense to factor in. In Waco TX we have a 6% state, 2% county, and 7% city occupancy tax.

[@TheRealEstateRobinsons]

Great call out! In our markets, Airbnb and VRBO charge the occupancy taxes directly to the guest.

[@rei_cowboy]

I love the calculator but I didn’t see monthly supplies there. I know I can just put that in but I was curious on how much you spend. Thank you.

[@emiliomejia5331]

It’s just now a time of repeating the process and looking and practicing it. Thanks for this. I thought I wanted to be a fix and flip her but now that I’m heavily involved in it it is not something I wanna do moving forward. These general contractors make things horrendous. I’m going to go the route of Airbnb for sure

[@TheRealEstateRobinsons]

Glad we could inspire you!!

[@ccrathin100]

Thanks so much for the spreadsheet. I was looking for the other two tabs but did not see them. Has it been updated?

[@robbiemerriweather7093]

Great content

[@donovanfrost129]

Thanks Tony. Been loving the Real Estate Rookie podcast as well! What are some key differences between Price Labs and AirDNA? Do you use both, or do you prefer one over the other?

[@TheRealEstateRobinsons]

Thanks! Both are awesome tools. I've leveraged PriceLabs more recently because the data is a bit more granular. And I think it's a little cheaper than AirDNA

[@ttaralli]

To determine utilities you mention reaching out to airbnb hosts in the area. For this do you use forums or do you suggest just reaching out to listing hosts directly?

[@unvme715]

Such good info!

[@TheRealEstateRobinsons]

Glad you think so!

[@wordsofcheer8442]

New here! Thanks for the info. I'm interested in this industry, so starting to learn. I believe another video you mentioned having around 10 properties, where are all located? I know CA and TN. Also, when people break your things or maybe even steal, you don't contact them for reimbursement, instead take it out of your maintenance budget? What made you guys get into the business, background story or did I miss the video on your beginnings?

[@allejess]

Nicely done Tony! Clear and concise 👌

[@ShortTermRookie]

Yes it is well constructed and simple to understand. He’s a good inspiration to watch for making content. I plan to keep watching for mine.

[@TheRealEstateRobinsons]

Thank you!! Glad to hear it was easy to digest!

[@ShortTermRookie]

@@TheRealEstateRobinsons Your content definitely giving me inspiration and motivation for my channel - thank you!

[@SksToTheMini14]

Thx for the vid.

[@Omkar-651]

Really excellent content!! How much is price labs? Think it's worth buying this if I'm analyzing deals to buy in any market?

[@jesusmoreno760]

Great video Tony! So when you went over insurance line item it got me thinking do we need a special insurance policy since it will be. A vacation rental?

[@TheRealEstateRobinsons]

We do let our insurance company know that it’s an STR, and there’s a special add-on for this type of usage.

[@jsanchezz123]

Just found you guys. Third video in. Great content. Thank you!

[@TheRealEstateRobinsons]

Thanks for supporting!

[@Fourthesauri]

Great info, thanks

[@TheRealEstateRobinsons]

You’re so welcome!

[@HyperPower26]

Good information

[@bi0lizard1]

Thank you. This was extremely informative and helpful. I noticed you didn’t include this fee for the property management company in your example? This would’ve been nice to see how it affect the bottom line.

[@Sanchocloz]

That’s is also what I noticed you did not include the property management expenses which I heard is between 15-30% of rental. Is this property management fee with the cleaning fee or without the cleaning fee included. It seems like their won’t be enough profit for the owner after all the expenses.

[@leighmorton9589]

Awesome content! The STR Analysis Calculator on your page doesn't have the "Rental Comps" and "Future Price" tabs. Shoud it?

[@galeforcepropertymaintenan2686]

Excellent info. So now that you know how much $ you’ll need and how much it will make, how would you structure a deal with an investor partner?

[@dewholdingsllc1050]

Thanks for the content. I think you did a clear job. Have you analyzed a property that you don’t own? Using a rental property? I would be interested in seeing a long term leased property (similar to a commercial NNN lease) Sales list price in destination markets are too inflated. The high prices are not real when the market crashes. I never owned property that was under water. Moreover, I’m not a retail real estate investor. So I would never buy anything listed on MLS. Those are with few exceptions retail properties. I purchase properties off market or under market. If I find a property on MLS and pursue purchase it’s a distressed seller and willing to sell subto or seller financing with little or no money down out of my wallet or some other creative financing method. How is this business model in April 2023, after many destination cities have housing market crashes going on? In my sub market Austin City Limits, housing is crashing after the peak May 2022, and with 33000 new construction apartments units coming to market any day rents are going down also. My 2 cents.

[@bryantharrison8271]

Thanks for the very good info. My wife and I are thinking about doing an Air bnb. We have our own house (it has a mortgage) plus we inherited her parents house (no mortgage) which has 6 bedrooms and is located in the mountains near a lot of wineries and a major Equestrian center but I would not call it a major tourist area. It seems like a no brainer but is it as easy as I think (all we are paying on the house is taxes and utilities)?

[@divinebunch6178]

What template did you use to build the analyzer? I tried downloading the checklist and the calculator, but both links lead me to the calculator. I'm really appreciating your video content!

[@irmafranke1012]

This was the EXACT video I needed!! Thank you so much!!! Excellent job!!!! Thank you, thank you, thank you!!!!!

[@TheRealEstateRobinsons]

You are so welcome!

[@ryanwood1062]

Thanks for the video!!! Question though. When looking at comps I can't seem to get it to show me the last 30 days. Only 365. I've changed it up top to 30 and it won't change down where I filter by revenue. Am I missing something?

[@spoonbr1223]

How do you account for changes in the law cracking down on short term rentals? I'd like to invest but it seems that most major cities/states these days are increasingly enacting laws severely limiting the ability of people to own short-term rentals that are not also their primary residence. Curious to hear how you deal with that when it comes up/identify markets not subject to those laws/account for the risk that such a law might pop up in a place where you already own and operate an airbnb.

[@vanessarios6497]

Just saw your video. How do you identify the most profitable cities in a certain state? I live in MD.

[@TrilbyWorks]

On the spreadsheet, what are the fields "user input" and "calculated" for?

[@eszterdory8565]

Do you think AirDNA is worth the subscription or do you recommend another tool? Thank you!

[@7thSonProductions]

Hey Real Estate Robinsons. I'm a new subscriber; I saw you on The Robuilt Channel and thought I take a look, great info!! I'm working up to participating in Airbnb. Between you and Robuilt I think I'll have enough knowledge to make it work.

[@TheRealEstateRobinsons]

We love to hear it! Best of luck on your journey!

[@7thSonProductions]

@@TheRealEstateRobinsons Thanks Much!!

[@maverickf13]

I came from Robuilt - so thrilled to have found you 😆

[@TheRealEstateRobinsons]

So thrilled to have you!

[@dawentsien3985]

Would you sign an apt lease to use for this short term rental income strategy?

[@jeadie8131]

Did I hear correctly that the rental averages just under $190/night plus $175 cleaning fee for an average of two days? Does the client see this billed as a single number or as two fees? Is there push back from visitors on this?

[@susanamoorrealtorlarosarea1097]

Hi I have been follow you I have 2 Airbnb in Orlando Florida but the slow season like now August and September are veryyyyy slow I lower the price is beautiful 3/ 2 Condominiums. What advise you can give me. Best regards

[@lapchurng]

Do you change the Airbnb did codes each time?

[@hajs8273]

You and your lovely wife are very brilliant.

[@yeseniasplace]

Do you provide the form your showing?

[@scottydlivemusic]

I entered the information to get the calculator and the email link never came to download.

[@BDtheZero]

Great video. I heard you say that most of your properties you put 10% down. Are those conventional loans?

[@stevend481]

Theres vacation home morgages that are 10% down. He said it on his bigger pockets episode

[@tlxreed]

Great video! Do you have a preference for Pricelabs over AirDNA?

[@TheRealEstateRobinsons]

We use both!

[@dust5248]

Great video! How do you know that the property would average 80% occupancy though?

[@cyrusjulian187]

I think he said he based that on the comps

[@Gonewiththeshirt]

Hi Tony how can you pay10% down payment and 3,5% interest rate " isn’t 7% interest rate more practical, also who help you push trash can out and pull it back two times in a week. Thank you

[@vanessaandrade4582]

I do have a few questions (possibly for another video). Do we need a property manager if our Airbnb is not in the same state where we live? Or can we manage long distance? What does a property Airbnb manager do? Does Airbnb offer that? Or do we need a real estate agent? How much do they charge? Is it worth it? Thank you so much in advance!!

[@TheRealEstateRobinsons]

We have a video coming out in a few weeks about self managing your properties remotely!

[@vanessaandrade8210]

@@TheRealEstateRobinsons Thank you so much!! Looking forward to it!!

[@Jeff-ik3hn]

The checklist snd calculator won’t load for me

[@qhall79]

The spreadsheet that you are using in the video, is not the same sheet made available to use via your link below. How can we get the one you are using that has the formulas.

[@TheRealEstateRobinsons]

Thanks for catching that! We updated the description, but here’s the link: AlphaGeekCapital.com/calculator

[@juliusdavis5069]

How do you take into account vacancy for an area that may not rent year round due to weather conditions?

[@TheRealEstateRobinsons]

Price labs shows you occupancy rates, broken out by the month. And we typically take an annual occupancy average to account for the fluctuations.

[@adamreebs2585]

With all the data you were looking at, how did the 50% average occupancy rate go to 80 in your predictions? Did I miss something?

[@zachhenson6709]

This is literally the most beautiful video I have ever watched.

[@TheRealEstateRobinsons]

This is literally the nicest comment we’ve ever had

[@1mgb]

Hi Tony, great content. How do you deal with Debt to Income ratio limits when trying to buy new units and faced with the fact that most (if not all) lenders don't consider STR income when calculating DTI ratio? Thanks!

[@TheRealEstateRobinsons]

We partner with folks to help with the DTI restrictions. There are also lenders that can lend based on the projected performance of the property.

[@1mgb]

@@TheRealEstateRobinsons thanks!

[@kevinduncan8174]

@@TheRealEstateRobinsons what do these partnership structures look like? You couldn't be co-signing, so are you essentially acting as a 'property management' company, where the partner owns the real estate, but you find the deal, help close the deal, and then manage the property for a % of profits?

[@Sanchocloz]

Maybe in a future video you could show us how to structure partnerships. Thank you for your content. ❤

[@MrAmine293]

Thanks so much Tony, this is Gold. Appreciate the calculator and the checklist

[@TheRealEstateRobinsons]

Thank YOU for supporting our content 😄

[@mariposapops9407]

awesome

[@TheRealEstateRobinsons]

Glad you enjoyed it!

[@brandonm5083]

If you ever visit Shreveport, I would love to buy you lunch and pick your brain. Currently stationed here for the next year, but you’ve motivated me to get started with STRs.

[@MrYasser13]

What type of C.O.C return do you usually aim for on STR? Im looking to purchase a 3br/3bth SFR property near Disney in Orlando florida, P.P $360k, average nightly is around $150-$190, i used your calculator and punched in all the numbers and were able to get about a 25% C.O.C return. Thoughts?

[@TheRealEstateRobinsons]

The COC return target will vary by person, depending on their unique goals. Some people just want to beat the 0.01% they’re getting at the bank. Others want to recapture their initial investment in the first year. 25% is a good baseline target though.