Welcome back to Running_Realestate here on RU-vid. Last year I did a mini-series on our Fayetteville, Arkansas, Airbnb and how much we made in gross receipts during the previous football season.
Let's call today for an updated video. How much do I make in gross revenue with three Airbnbs in operation? We have a full year of data and a solid projection for last year as we have added our pillar property to the portfolio.
October of 2021 - $8,249.58
November of 2021 - $4,918.87
December of 2021 - $5,630.66
January of 2022 - $5,995.57
February - $5,182.26
March - $4,469.52
April - $5,679.44
May - $5,791.67
June - $5,113.71
July - $5,715.39
August -$6,623.01
September - $6,034.50
The average month between the Lower Greenville (Dallas) condo and the East Fayetteville (Arkansas) home is $5,783.68.
The breakout is less of a difference than you may expect comparing a one-bedroom condo to a three-bedroom house, but Fayetteville brought in 55% of our $69,404.18 of total revenue between both units.
Gross revenue sounds fantastic and makes for a great, eye-catching RU-vid headline, but what about the actual business? Is Airbnb worth it?
Looking forward to next year's update video, we will have added our third property to the mix for a full calendar year. The Downtown Bentonville Airbnb is projected to hammer out $4,000 in monthly revenue. We had a few bookings in September of 2022, but I decided to keep the video focused on our first full year, so I have removed the revenue.
So $69.4K in 2021-2022, adding in $48K projected revenue in 2022-2023, we will likely bring in $117.4K, give or take 10%. Low end - $105.7K, high end, $129.1K. For the video, let's call $110K to be conservative.
How profitable will we be against the $110K in Airbnb rev? Due to accumulating a robust portfolio and a weighted average interest rate across all three properties of around 4% on the dot - plus significant appreciation - we know we could profit about 30%-32.5% on the $110K with property management removed.
However, Taylor and I value the improved headspace of not dealing directly with guests and our fantastic cleaning crew. Therefore, we have decided paying our property manager 17.5% off the top is one of our best spends. This pushed our profitability to 12.5-15%.
We might end up higher - but everything is accounted for, including fixes and other budget items which may or may not come to fruition on any given month but will over the year.
Safe to say, next full year, from October 2022 to September 2023, we expect to profit about $15,125 from the ownership of three Airbnbs. Using this math, owning roughly 30 short-term rental units would unlock $150K in cash flow per year. I am sure this is arguable, but we have a strongly weighted portfolio, and this space is becoming increasingly crowded.
It remains to be seen whether we will lean into STRs are swing towards the more traditional long-term rental model - or cleverly mixes both depending on what we believe to be the highest and best use of a given property at the moment.
Sum of Amount Column Labels
Row Labels East Fayetteville Lower Greenville Grand Total
January $3,294.12 $2,701.45 $5,995.57
February $2,749.99 $2,432.27 $5,182.26
March $1,778.25 $2,691.27 $4,469.52
April $3,066.65 $2,612.79 $5,679.44
May $2,727.64 $3,064.03 $5,791.67
June $2,930.43 $2,183.28 $5,113.71
July $3,588.03 $2,127.36 $5,715.39
August $3,892.95 $2,730.06 $6,623.01
September $2,601.82 $3,432.68 $6,034.50
October $5,934.81 $2,314.77 $8,249.58
November $2,702.42 $2,216.45 $4,918.87
December $3,025.24 $2,605.42 $5,630.66
Grand Total $38,292.35 $31,111.83 $69,404.18
30 сен 2024
