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Holy crap, they made 700k in profit on Airbnb? How much would they have made as just landlords?
by komali2 8y ago
Holy crap, they made 700k in profit on Airbnb? How much would they have made as just landlords?
- arcticbull 8y ago14 units times 11 months times the median rent in 2017 ($3000) = $462,000 in revenue. I suppose the article implies approximately $200,000 in expenses but it’s not clear whether those are Airbnb specific or whether those would have been required even if rented to tenants. It’s unlikely that each unit requires $14,000 in maintenance per year. It’s fairer IMO to use $1/sqft per year for condo maintenance when an HOA looks after the exterior, though I’m assuming these were condos? Assuming 750sqft, that’s just $11,000 in costs. Then there’s opportunity cost of capital, etc. The top line number should be good enough for napkin math.
- deleted 8y ago[deleted]