Project AirBnB
Buying real estate at the right price is a wise asset to invest in. We are in a sellers’ market now, so the house must be a short sale, foreclosure, or a new construction.
The target market will be the local christian college. Pensacola Christian College continues to expand, it provides an opportunity to meet the short-term rental demand that caused by the students visiting acquaintances.
PCC visitors are ideal clients due to most of them having Christian moral and ethics. Basing our business model on these consistent characteristics and the consistent flow of visitors, we can be confident
that our short-term renters will not cause substantial damage to the property.
One room being rented for 12 days at the price of $60.00 can pay for the monthly expenses. The goal of 12 days is very attainable and will help cover the summer months when visitors to the school drop.
We can investigate other optional forms of revenue for the property during the summer months.
· Summer student rentals
· AirBnB
· Office
Preferred launch date
End of summer, when the school opens up again.
SWOT
· Strength
o limited number of people doing Air BnB for the college parent
o Consistent number of people visiting their kids
o Rising price of house if we need to sell later on
· Weakness
o Price of house
o Mortgage payment
o Client flow
· Opportunity
o Consistent flow of visitors
o Expending student body
·
Threats
o More places being put on Air BnB
o Summer months
o Falling room prices
Description of the property to purchase
Price range of house to purchase
$40,000.00 – $80,000.00
Type of house
2 rooms 1 bath 800 – 1200 sqft
Down Payment on mortgage
0% -20%
Current market price of rooms being rented
$45.00 – $70.00
One room rented every day
28 day * 50.00 = 1400 room/ month
2 rooms per month 2,800.00
Location
Two preferred location
1. 10 min from Pensacola Christion College
2. On the beach front
Expenses
Property tax (look into Escro)
Homeowners Insurance ( Escro )
Insurance (Escrow)
Home Owners Association (Escrow)
Mortgage Escrow - $400.00 - 600.00 per month
Utilities:
Water cost – Sewage -Trash Service – $50.00 - 100.00 Per month
Electricity – $100 - 200.00 per month
Emergency Funds 15% of profit
Homeowners Insurance ( Escrow)
Repairs $100.00 per month
Advertising $20.00 per month
Fees for Air BnB
Income
Rental ($0.00 – $2800.00) a month
Risk:
If participating member defaults on payment, their share can be bought out by the other investors.
The defaulting investors cannot hold the project to ransom.
Solar Panels (if installed) getting credit from the main grid
After expenses are paid; the profits will then be divided among the investors based on the percentage we owned.
Any other expenses or expenditures should be discussed among the investors and voted on.
Find common ground; we are in this to the end.
If the arrangement is successful, we can continue buying, renting, and flipping the houses.
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