Buying & Selling BnB's Based on Revenue

Bill and Kenny highlights the importance of buying properties based on their intrinsic value rather than inflated revenue figures. Kenny Bedwell criticizes realtors who sell properties based on gross income rather than actual value and cautions against over-reliance on revenue projections. They stress that banks do not view single-family homes as commercial assets and will not provide loans based on cap rates. Faith and Bedwell advise potential investors to base their decisions on comparable market values and to be realistic about their revenue projections. They also discuss the risks of Black Swan events, such as natural disasters, affecting property value and revenue. The episode underscores the need for thorough market analysis and consideration of appreciation rates. Both hosts advocate for a balanced investment approach, considering cash flow, tax savings, appreciation, and principal paydown. They warn that relying solely on revenue can lead to overpaying and financial difficulties if the market shifts. The hosts share their experiences and emphasize the vital role of property appraisals in making sound investment decisions. They highlight the resilience of tourism markets in affected areas as potential investment opportunities. The episode concludes with advice on how to navigate revenue volatility and highlights the importance of having a solid investment strategy. The hosts encourage listeners to be honest with themselves about their capabilities and to rely on trusted data sources like AirDNA and STR Insights. They sign off by reminding investors to make informed decisions and prepare for both market opportunities and setbacks.

https://www.marketmystr.com/

00:00 Introduction: Challenges in Short Term Rentals

00:26 Welcome to STRonomics

00:28 Market My STR: The Ultimate Marketing Platform

01:26 Discussion: Buying and Selling Short Term Rentals

02:46 Real Estate Valuation and Investment Strategies

08:34 Impact of External Events on Investments

15:48 Conclusion and Final Thoughts

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