Superhost Sunday: Auditing & Repositioning Your STR Portfolio

Build Short Term Rental WealthJun 18, 202319m 3s350 viewsScore 85
Pricing & Profitability
advanced
return on equity
portfolio audit
net income
reinvestment strategy
STR financials
M

Summary

AI-generated

Learn how to audit your short-term rental portfolio using a Return on Equity (ROE) approach to identify underperforming assets and opportunities for reinvestment. This method focuses on net income and equity to strategically level up your portfolio and achieve financial goals.

Key insights

  • Factor in potential exit costs when calculating net proceeds from selling a property. This includes realtor commissions, closing costs, and any prepayment penalties on loans, which can significantly reduce the amount available for reinvestment.

Mistakes to avoid

  • Over-leveraging through HELOCs at high interest rates (e.g., 8.5%) can hinder debt reduction goals and negatively impact overall portfolio strategy, especially for hosts focused on paying down debt.

Tools & resources

  • Portfolio Tracking Spreadsheettool

    A simple spreadsheet, potentially in Google Sheets, can be used to track property debt, current market value, equity, revenue, and year-to-date net income for portfolio analysis.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial