#real estate

4 articles

Airbnb $39K Gross vs Long-Term $25K Gross: Net Story Is Much Closer

Sarah's condo: Airbnb at 62% occupancy nets $15.5K. Long-term tenant nets $18.3K. Airbnb wins decisively only at 70%+ occupancy plus $200+ nightly rate plus self-management. The 'Airbnb prints money' framing assumes conditions most owners can't sustain.

$50K Projected Flip Profit Becomes $6,400 Real: the 5 Costs Rookies Underestimate

Marcus's $280K-buy / $375K-sell flip looked like a 17% gross margin. After loan interest, holding costs, agent commission, and short-term capital gains tax, real profit was $6,400. 11.4% annualized, beat by an index fund with no effort.

$350K Rental Property: −$7K Year 1 Cash Flow, 8.2% Year-10 IRR

Jake's $350K rental at $2,100/month: 3.65% cap rate, −7.7% cash-on-cash year 1, $594/month negative cash flow for 4 years. Year-10 IRR of 8.2% is the only metric that justified holding through it.

Trade-Up Math: $180K Equity Becomes $163K Cash, Becomes a $1,993/Month Payment Hike

The Chens' $420K sale → $163K net cash → $650K new home → mortgage payment goes from $1,400 to $3,393. Trading up at 2026 rates from a 4.5% legacy mortgage is the hidden cost of the rate-lock-in problem.