Just finished the books for Dec 2021 for our little vacation rental business (6 properties, average purchase price $355K with 20% down, mostly funded from recycling the cashflow and equity).

Going to share the results again for the month. And also the complete 2021 results.
As an aside, I share them because it’s motivating to improve the results if you plan to to share them later and writing helps me think more clearly. If the results become either embarrassingly good or embarrassingly bad down the line, I reserve the right to stop sharing them 😀
This is the monthly cashflow of the portfolio. Dec 2021 generated $13.2K in cashflow this month (after all expenses, taxes, capex, and mortgage payments). Dec isn’t peak season so there is more weekday vacancy, but Xmas and NYE have high nightly pricing.
The results were better than expected, considering we had a number of year end related expenses and a very huge Capex expense caused by a plumbing issue in Yosemite
Revenue was up about 15% versus the prior month
Okay, zooming out a bit. How did 2021 on the whole compare to prior years?

This year the properties generated $151K in cashflow for the year, compared to $2K in the somewhat disastrous 2020.
Revenue for 2021 was $404K compared to $141K in the prior year.
Numbers were obviously much better in 2021 than prior years because 1) We had more properties 2) Implemented dynamic pricing 3) Kauai was open to travel for most (but not all) of the year 4) General increased popularity of Airbnbs (that could be temporary).
I should note that you probably could have achieved this level of profits with just one larger sized property property with a high nightly rate. But, we feel good about spreading the risk out into multiple A+ locations with highly differentiated properties.
Going forward, feel pretty good about 2022 with this little portfolio. For a variety of reasons properties tend to do better over time and 3 of our 6 were only on the rental market for part of the year in 2021 (Kauai being shut to travelers & two new ones come online this fall)
But, anything can happen! I hope these data updates show that this is truly a volatile business.
That's all for now. My plan is to keep doing these monthly updates if you want to follow along.

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More from @rohindhar

9 Dec 21
Anytime we’ve ever acquired a vacation rental property, it took so many successive miracles to pull off (finding a good deal, scraping together the downpayment, getting the loan, renovating and designing it, getting a cleaning crew, and then finally getting guests who love it).
Might be totally irrational, but I can’t imagine ever selling them after going through that process! They're like my little babies.
This great thread by @realEstateTrent made me rethink that this morning. Don’t know what the right answer is, but clearly a lot of wisdom here >>
Read 8 tweets
8 Dec 21
Our first guest that ever stayed at this property gave it 4 stars, which was a rough way to start. But since then it’s rattled off 67 five star reviews in a row😀
To be a "Superhost" on Airbnb, the main criteria is if you average a 4.8 star rating across your properties. So having a property that folks really really love can help you hit that average with a bit less stress.
The benefits of being a Superhost are kind of vague, but hopefully it helps you rank a bit better in the search results (or guests can book a new property with more confidence b/c it's a vetted host). Not sure whether it does anything or not!
Read 5 tweets
20 Oct 21
Since a lot of people asked me how does one exactly afford the downpayments for all these homes, I’d thought I’d break down roughly how my wife and I turned 1 house into 6.
(Note: this is somewhat simplified and not the exact timing of how things worked, but in retrospect, yes how things worked)
Started with house number 1. Paid 20% down plus modest renovation costs.
Read 9 tweets
19 Oct 21
These are the purchase prices of the homes in the small portfolio of vacation rentals owned by my wife and me.
All purchased with 20% down, mostly funded from the portfolio itself.
They’re all in different places (mostly to diversify risk, but also because that’s slightly more fun).
Read 5 tweets
7 Apr 21
There is a bit of a gold rush of people investing in Airbnbs and vacation rentals this year (related to pandemic remote work, interest rates, and perhaps the company’s IPO). I’m not sure if people realize quite how risky the asset class is.
This point was hit home the other day when listening to a podcast where someone with less than a year’s investing experience mentioned they were closing on 5 new Airbnb properties this month. Then i heard a podcast featuring someone with 5 properties and only 30 days experience!
So I thought I’d come up with a bunch of risks regarding investing in Airbnbs and vacation rentals.
Read 17 tweets
5 Feb 21
The most interesting thing we did during the pandemic was … we bought an Earthship! Image
An Earthship is an off-the-grid, self-sustaining home brilliantly designed by Michael Reynolds. It’s a house that half-buried in the earth, half greenhouse near Taos, New Mexico. en.wikipedia.org/wiki/Earthship….
The electricity source is solar. In the winter, it’s heated by the the south-facing greenhouse. It can be freezing outside, but this room gets very warm. Image
Read 13 tweets

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