Short Term Rental Riches 97. How Many Properties It Takes To “Retire”
Sep 21, 2021
Discover how short-term rentals can fast-track your financial freedom! The discussion covers the vital calculations for achieving independence, showcasing the superior cash flow of STRs compared to traditional long-term rentals. Learn why the USA is the prime spot for investment and what your retirement number should be. Plus, get insights on setting up a successful game plan to maximize your portfolio growth.
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Traditional Rental Cash Flow Challenge
- Traditional single-family long-term rentals average around $200 a month in cash flow after expenses.
- Achieving $10,000 monthly cash flow requires about 50 such properties, which is a large and complex portfolio to manage.
Repair Costs Impact Cash Flow
- Major repairs like an AC replacement can wipe out years of profits from a single rental.
- Low monthly cash flow makes recovery from big expenses very difficult for traditional rentals.
Long-Term Rental Maintenance Costs
- Vacancy and long-term wear and tear also reduce cash flow reliability in traditional rentals.
- Expenses like repainting and flooring repairs can equate to over a year of lost cash flow.