Time for a long overdue set of Financial Updates for each of my properties! I have been investing in short term rental properties for the past almost year now (along with house hacking) and I have tried to document my journey on my Instagram account. It has been a wild time with everything going on, but it is finally time to put all the numbers out there for everyone and anyone who cares to follow.
The HOA had their chance to email the homeowners to keep us up to date on all the things going on. Now time for some fun in my response back to them. Sometimes I feel the etiquette I have learned in drafting professional emails in work come out too much in these emails. I would love to deal with these things over the phone or in person, but the HOA and board have yet to want to speak in person or over the phone.
"A further update on our financial planning will be provided in the next few days but in the meantime, thanks to all who have already paid this quarter’s fees and to those who have not yet paid, please do send yours in as soon as possible, so that we can maintain sufficient cashflow levels, not only to protect your resort asset but just as importantly, to keep our resort and its residents, guests and staff, safe and secure through these difficult times."
My views on HOA's before and after this saga is definitely interesting to look at right now. To give an update on where we are at in the story. I have been told that the Executive Order in place prevents me from renting my home as a traditional short term rental investment property. There are still other avenues that I have yet to explore which I will detail out in tomorrow's post. In the meantime, I wanted to provide some insight into how I view HOA's. Real Estate investing is fun and there is so much that goes into it. Just when you think you have the hang of things, COVID-19 hits and the economy gets flipped on its head.
It is finally time for legal advice from a local Florida attorney. Late last week, I had the opportunity to have a friend’s wife quickly review the information and provide her interpretation. It is now time to get a local attorney who is very familiar with the Florida law to provide their interpretation and guidance.
Here we go. So here is where we currently stand from yesterday. After I finished the conversations with Jose, I decided to go back to my place to do a couple of things. I proceeded to call the guests who were just turned away and apologize again for everything going on.
It is a very tough time in the economy we are living in today. There are 3 things I am doing in my short term rentals to generate revenue. They are outlined below with each of my properties. These are by no means the only things hosts can be doing during these tough times, but I have found them to be successful for me.
This month I went from $10k expected income to $20. That is right, this is a massive decrease in revenue. COVID-19 is impacting short term rentals in a very significant way in Florida. The governor recently signed in an executive order to halt all short term rentals less than 30 days for the foreseeable future.
In the month of December, I hosted 51 guests across 7 different bookings. Of the 7 stays, I received a review from each of my guests! Many hosts know getting your guests to leave a review can be difficult. I am also excited to say of the 7 reviews, all were 5 stars!
When analyzing a short term rental property, it is important to be able to estimate cash on cash returns. This allows you to understand whether something is a good investment or not. When you…
The ability to understand your expenses when analyzing a short term rental investment is critical. Income is only one side of the equation. If you are able to effectively understand your expenses, you will be able to put together projected cash flow numbers. This will help you determine if a property is worth investing in.
Analyzing a short term rental investment for cash flow is critical to know if there is financial sense to the property you are looking at. With that, I wanted to share the sensitivity analysis spreadsheet I have created to analyze a short term rental investment. Let's jump straight into analyzing a short term rental property with first understanding the numbers!
