Short Term Rental Secrets Podcast The Hidden Math That’s Quietly Draining STR Profits | The STR Scale Show with Mike Reilly | Ep 08
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Apr 3, 2025 Discover how many property owners unknowingly hold 'dead equity' and the benefits of smart selling or refinancing. Learn a simple formula to identify dead money in your portfolio while increasing your annual income. Explore how current high interest rates can be turned into future advantages, plus master the debt-to-income ratio for improved buying power. Gain insights on enhancing property value through design and amenities and understand the true costs of holding equity with low returns. It's all about using math for smarter investment decisions.
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Market Dynamics and Low Interest Rates
- Many homeowners have low interest rates, discouraging selling even if they want to move.
- There are not enough new homes in desirable areas, making people hesitant to take on high rates.
Creative Investing for STRs
- Be creative with design and amenities to make short-term rental properties stand out.
- Consider unique experiences and don't neglect the importance of location.
Debt-to-Income Ratio
- Calculate your debt-to-income ratio to understand your purchasing power.
- Consider reducing write-offs to show higher income on tax returns for loan applications.