Issue #55 - Brandon Cobb, The House Buyin Guys | Page 106

Generally speaking , a cabin will make 45 % net profit . If you hire a management company , they are going to expect 25 % to 40 % of your gross income ; 95 % of my client ’ s self­manage their cabins with my proven method of doing so . But that is a whole other topic , and I am certainly happy to answer questions , such as :
1 . How do I manage my cabin from 2,000 miles away ?
2 . How do I minimize phone calls from my guests to the point where I do not get any ?
3 . How do I maintain five­star reviews on Airbnb and VRBO ?
4 . What do I do if I have a maintenance emergency in the middle of the night ?
5 . Do you share your team of people on the ground in Broken Bow to help cabin owners ?
So , let us talk about real numbers . I purchased my “ Kiss and Angel Good Morning Cabin ” in April 2018 . It came fully furnished from a new-construction builder with a sales price of $ 310,000 . It appraised for $ 329,000 , and today it would appraise for $ 360,000 or more . I put 10 % down . Mortgage , taxes , insurance as well as PMI totals $ 2,050 a month . Property taxes are low at about 1 %. My monthly average expenses to run my cabin business is $ 500 a month .
In my first year , I paid down the mortgage with 100 % of my profits . I did not pay my mortgage down in
2019 . Instead , I used my profits in 2019 to purchase my second cabin . Right now , I have $ 100,000 equity in this cabin . Nightly rates are between $ 199 and $ 350 a night . My first year , I grossed $ 50,000 with $ 20,000 net profit . My second year , I netted $ 27,000 profit .
I encourage my clients to purchase new construction or a cabin that is less than three years old . That is another discussion for a different day . About 70 % of cabins for sale can be found on Realtor . com . Not all real estate agents list their cabins on any MLS . New construction cabins cannot be found online anywhere . You must have a connection to a builder to find those hidden gems ! Eighty percent of my clients purchase a new construction cabin that has not yet been completed .
I know I have just scratched the surface with this article and there are many more questions to be asked . I am extremely grateful I discovered the Broken Bow area . I have two young children and with
the two cabins that I do own now , I will be able to use the $ 2,000 monthly net profit to pay for my children ' s college education .
I do not see this market slowing down anytime soon as I do not see the DFW market slowing down . It has been rumored that Broken Bow will be the next Branson , Missouri , or Lake Tahoe .
I do not have enough cabins to show my clients , even during this possible recession . Construction has not slowed down either . Can you think of a hotter market ? I hope to hear from you soon , and thanks Jimmy for allowing me to contribute to your article , back to you !
Well , I hope you just realized the opportunity you have been presented with . How regardless of where you live you can own a Vacation / Investment Cabin that can produce up to nearly Triple the Cash Flow vs . that from an ordinary rental . Yes , I know if you are Old School you understand Monthly Rentals . Trust me , I ' ve had rentals for over 30-plus years !