Airbnbs are TOO EXPENSIVE to Operate - How Much Ours Costs Us 

Who does your pest control? I am paying twice what you are

@@rpleven2 in the Gatlinburg area All About Bugs

Hey man, I’m making about 18k a month right now from stocks and I’m financially free and my outgoings are only 2k a month. Now I have no idea what to do with my life haha, I quit my job recently

@@Qwertyisgajidbd well first of all congrats to you! What do you enjoy doing? Travel? Any hobbies you want to pick up?

@@melefante6 thanks dude, we’ll travel aint gonna happen till covid is over and I do have some hobbies.

Thanks for the kind words!

Thanks!! :)

We have studied this market for a while now and also have another Airbnb in the sane town. The tourist numbers are very strong. It’s the town closest to the entry to the Great Smoky Mountain National park which is the most visited US national park in the USA. So we figured the tourism would be strong fir the very foreseeable future! :) We base our projections on a very conservative “most likely” occupancy and avg nightly rate. Our low forecast still must exceed a 12% cash on cash return, so it ensures our break even point is so low compared to what we’re expecting, even in a ‘worst case’ scenario we are still net positive cash flow I do detailed cost analysis and provide my spreadsheets in my patreon account if you had interest in really digging into the numbers and how we select properties, manage them, etc :)

Yes it is lower in slower months. Cleaning is less, less in utilities also

I think it really comes down to the CoC return and what your goals are. Since we live near two of the properties, yes we usually restock ourselves. When we are not in town our cleaners will restock some items and invoice us. We have also shipped items to our cleaners residence with their permission and paid them extra to restock for us. Usually we buy at Costco or Amazon

Reserves as in money reserves or reservations as to actually going through with the investment? :)

@@melefante6 money reserves. Thanks for the reply.

@@chrisg2417 personally we like to have about 3 months living expenses for ourselves. And for each additional investment we like to have about 2-3 months cash worth of monthly expenses as reserves for each property, but usually no more.

There are several good cleaning companies in the area. Most recently we have used mountain pine clean and have been pleased

@@melefante6 awesome, thanks for the info

Yes great point. We do have reserves for each property we own and part of which we can use to pay for income taxes when filing in the spring

:)

:)