How is this "Artificial Intelligence" (from the about page: https://www.eliotandme.com/about)?
Show HN: Short-term rental estimate for sites like Airbnb
31–40 of 103 posts
Re: Show HN: Short-term rental estimate for sites like Airbnb
#32Gave me the exact same rate for my current apartment (1600sq ft Capitol Hill Seattle) and my previous condo (1100 sq ft NuLu Louisville, KY). My rent here is 3.5x what my mortgage was in Louisville and from personal experience in both places the demand for short term rentals in Louisville is nothing like it is in Seattle. So yeah... probably not accurate for the addresses I checked.
or maybe you overpaid for your apartment. it's not uncommon in cities on the west coast for prices to irrationally exceed the possible rental income.
Re: Show HN: Short-term rental estimate for sites like Airbnb
#33Earlier quoted context omitted.
I did a quick check in the Sunnyvale area, a $2M mortgage on a 4 bedroom, 2.5 bath house that can sleep 6 at $2700 a week is about the same as a mortgage. (note you'd insurance, pay taxes on the house, and have more expensive maintenance) So bottom line you'd lose money on the deal.
I have the understanding that no one expects residential real estate rental to be cash-flow positive with a full mortgage. It's extremely rare and basically a complete no-brainer if you can find a property that is cash-flow positive with a mortgage. Generally, one looks at equity and tries for net-worth positive. Which is simple to say, but is made more complex by older mortgages giving more equity for an equal payme…
If you're investing in real estate you always want a mortgage and you always want it cash-flow positive. If it's not cash-flow positive on the first day of renting it out, then you don't buy the property. Investing for equity is about the dumbest mistake some real estate investors make. Always invest on cash-flow. Investing for capital appreciation is a recipe for disaster. With positive cash-flow, the underlying value is irrelevant.
When I say you "always want a mortgage" I mean that if you have a mortgage you have your tenants paying for the house. Your cash on cash return is far higher. If your potential property doesn't support that, then find another property. Paying $200k cash for a house that nets $500 per month is far less interesting than buying 10 houses at $20k down that each net $200 per month -- and it takes exactly the same cash.
Re: Show HN: Short-term rental estimate for sites like Airbnb
#34Re: Show HN: Short-term rental estimate for sites like Airbnb
#35If only it was legal in my state!
Re: Show HN: Short-term rental estimate for sites like Airbnb
#36Earlier quoted context omitted.
I have the understanding that no one expects residential real estate rental to be cash-flow positive with a full mortgage. It's extremely rare and basically a complete no-brainer if you can find a property that is cash-flow positive with a mortgage. Generally, one looks at equity and tries for net-worth positive. Which is simple to say, but is made more complex by older mortgages giving more equity for an equal payme…
If you're investing in real estate you always want a mortgage and you always want it cash-flow positive. If it's not cash-flow positive on the first day of renting it out, then you don't buy the property. Investing for equity is about the dumbest mistake some real estate investors make. Always invest on cash-flow. Investing for capital appreciation is a recipe for disaster. With positive cash-flow, the underlying val…
The overhead of renting 10 houses, and the interest on 10 mortgages, is just zero or what?
Re: Show HN: Short-term rental estimate for sites like Airbnb
#37Re: Show HN: Short-term rental estimate for sites like Airbnb
#38Re: Show HN: Short-term rental estimate for sites like Airbnb
#39Re: Show HN: Short-term rental estimate for sites like Airbnb
#40Earlier quoted context omitted.
I have the understanding that no one expects residential real estate rental to be cash-flow positive with a full mortgage. It's extremely rare and basically a complete no-brainer if you can find a property that is cash-flow positive with a mortgage. Generally, one looks at equity and tries for net-worth positive. Which is simple to say, but is made more complex by older mortgages giving more equity for an equal payme…
If you're investing in real estate you always want a mortgage and you always want it cash-flow positive. If it's not cash-flow positive on the first day of renting it out, then you don't buy the property. Investing for equity is about the dumbest mistake some real estate investors make. Always invest on cash-flow. Investing for capital appreciation is a recipe for disaster. With positive cash-flow, the underlying val…
I don't disagree with you. I was speaking solely about full mortgage -- ie, minimum down payment. Turning a positive cash flow with a large mortgage is very difficult, especially after accounting for all costs. (Mortgage, taxes, insurance, maintenance, hoa, vacancy...) Turning a positive cash flow without any mortgage is very easy, but kills your ROI. So you're going to end up shooting somewhere in the middle...
EDIT: Here's a fun Reddit thread on the topic:
https://www.reddit.com/r/RealEstate/comments/36ikp6/landlord...
Here's an example from that thread on how quickly the math takes you to roughly cash-flow neutral -- and this is with 25% down and 1% rental price:
https://www.reddit.com/r/RealEstate/comments/36ikp6/landlord...