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Old 05-23-2018, 01:28 PM
 
8 posts, read 3,855 times
Reputation: 15

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Hello,

If I am qualified for an additional $400k (30 year fixed) mortgage on top of my current primary resident.

Which Scenario would you rather do?

1) Buy Two Townhouses

Two townHouses: $200k each , sale value: $400k
20% down payment: $80k
Estimated Gross Monthly income: $3,200 (Fixed $1,600 per house ,12 month lease), total yearly income: $38,400


2) Buy Lake house

Sale Value: $400k
20% down payment: $80k
Rent out the house Airbnb, estimated $120 a day ( prices varies per month, $80 to $300) Total yearly income: $43,800

Edit: I changed income for airbnb based on this:

https://www.eliotandme.com/vacation_...a_USA/estimate

Last edited by AznDragon533; 05-23-2018 at 02:39 PM..
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Old 05-23-2018, 01:31 PM
 
Location: Rochester, WA
3,833 posts, read 2,058,876 times
Reputation: 10577
The Airbnb thing is a LOT more labor intensive.... needing to clean and prepare and re-stock between each guest. For less money? No brainer.
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Old 05-23-2018, 01:31 PM
 
110 posts, read 39,909 times
Reputation: 72
you know you want buy two townhouses, you just asking for reassurance

if you cant profit more from airbnb, then why bother with it, normally airbnb is more profitable but more works
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Old 05-23-2018, 02:36 PM
 
10,274 posts, read 6,510,807 times
Reputation: 10855
Quote:
Originally Posted by AznDragon533 View Post
Hello,

If I am qualified for an additional $400k (30 year fixed) mortgage on top of my current primary resident.

Which Scenario would you rather do?

1) Buy Two Townhouses

Two townHouses: $200k each , sale value: $400k
20% down payment: $80k
Estimated Gross Monthly income: $3,200 (Fixed $1,600 per house ,12 month lease), total yearly income: $38,400


2) Buy Lake house

Sale Value: $400k
20% down payment: $80k
Rent out the house Airbnb, estimated $120 a day , Total yearly income: $43,800

Edit: I changed income for airbnb based on this:

https://www.eliotandme.com/vacation_...a_USA/estimate
Buy the 2 townhouses, there is no way you can rely on the AirBNB to book your lake house consistently.
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Old 05-23-2018, 03:46 PM
 
Location: Raleigh NC
7,773 posts, read 6,128,244 times
Reputation: 6905
eliotandme.com = Zillow for airbnb dreamers?
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Old 05-23-2018, 03:54 PM
 
10,274 posts, read 6,510,807 times
Reputation: 10855
Quote:
Originally Posted by BoBromhal View Post
eliotandme.com = Zillow for airbnb dreamers?
They should call it idiotandme
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Old 05-24-2018, 12:37 AM
 
1,519 posts, read 567,747 times
Reputation: 2948
Neither. You haven’t factored in vacancy, maintenance or damage.

If you cant do it with cash, then don’t.

You won’t listen anyway.
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Old 05-24-2018, 02:57 AM
 
Location: Cary, NC
31,621 posts, read 55,349,802 times
Reputation: 30183
Between the two options?

Two townhouses. Definitely.
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Old 05-24-2018, 05:11 AM
 
15,833 posts, read 18,460,249 times
Reputation: 25619
No logic. why borrow money to rent out properties to break even? Maybe buy your next home, and rent out the one you currently own.
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Old 05-24-2018, 05:27 AM
 
983 posts, read 283,099 times
Reputation: 1440
I have been hearing about the increasing fees with airbnb, issues with guests, issues with airbnb regarding complaints, etc where some people have problems and some don't depending on who overseas your area. So see if you need to factor that in better.
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