🚨 Just finished my deep dive of Techvestor and their latest performance numbers. Techvestor is a fund manager that invests in Airbnbs for accredited investors. As of Q1, they owned 121 properties (119 active listings) across two funds in 9 states.

TLDR: It's bad.





Founded in 2021, they've scaled fast. Very fast. Their acquisition strategy is buying properties in traditional vacation rental markets, making minor renovations, and adding major amenities. They love big murals, neon lights, putt putt, and brightly painted basketball courts.

Here are a few terms/metrics, definitions, and formulas that every short term rental investor should know. Might be helpful to those just starting out.

1. Hold period - the duration of time between the acquisition of an asset and its sale. 2. Cash-on-Cash Return - rate of return ratio that calculates the total pre-tax cash flow earned on the total cash invested. Here's the formula:

(Cash Flow After Debt Service / Total Cash Investment)

If I invested $100k and CF $10k in year 1, my CoC is 10%.

In most STR markets, a 1BR requires as much as work as a 5BR but makes around a 3rd of the income. Lots of markets are undersupplied by larger homes. The biggest barrier to entry is purchase price.

Here's how to buy a large STR without a ton of up front cash and make a killing: Find a secondary or tertiary market (that isn't specifically a vacation rental market) with STR occupancy greater than 65%. I'm talking markets like Austin (68%) Orlando (67%) Portland (83%) Salt Lake City (77%) or Charleston (76%). Identify the general target area for STRs.