Jessica Collins’ Post

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Real estate education + investment opportunities & Reconstructive surgeon

𝗥𝗢𝗜 𝗜𝘀𝗻’𝘁 𝗮 𝗢𝗻𝗲-𝗦𝗶𝘇𝗲-𝗙𝗶𝘁𝘀-𝗔𝗹𝗹 𝗠𝗲𝘁𝗿𝗶𝗰! 𝗥𝗲𝗮𝗹 𝗲𝘀𝘁𝗮𝘁𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝗶𝘀 𝗽𝗼𝘄𝗲𝗿𝗳𝘂𝗹. But understanding your ROI (Return on Investment) is the key to knowing if that investment is really working for you. Did you know there’s more than one way to calculate ROI depending on the property type? Let’s break it down: For example, 𝘄𝗶𝘁𝗵 𝘀𝗵𝗼𝗿𝘁-𝘁𝗲𝗿𝗺 𝗿𝗲𝗻𝘁𝗮𝗹𝘀, I look at three factors: nightly rate, occupancy rate, and seasonal trends. So, let’s say I’m pulling in $250 per night, and I average 20 nights booked each month. That’s $5,000 gross income monthly. But then, I subtract my monthly costs—things like cleaning, platform fees, and utilities, which come to around $1,500. So my net income is $3,500. From there, I calculate ROI by comparing my net income to my initial investment. 📈 𝗪𝗶𝘁𝗵 𝗱𝘂𝗽𝗹𝗲𝘅, 𝗺𝘆 𝗳𝗼𝗰𝘂𝘀 𝘀𝗵𝗶𝗳𝘁𝘀. For example, the property has two long-term tenants bringing in a combined monthly rent of $3,200. Expenses (including maintenance, property management, and insurance) total $800. So, my net monthly income is $2,400. A steady income flow like this means my ROI for a duplex often looks very different from a short-term rental ROI. 🏠 Each property type has its own ROI quirks, and a clear formula helps keep the numbers in line with my goals. 🔍💼 𝗞𝗻𝗼𝘄𝗶𝗻𝗴 𝘁𝗵𝗲 𝘀𝗽𝗲𝗰𝗶𝗳𝗶𝗰𝘀 𝗶𝘀 𝗲𝘀𝘀𝗲𝗻𝘁𝗶𝗮𝗹 𝗶𝗻 𝗿𝗲𝗮𝗹 𝗲𝘀𝘁𝗮𝘁𝗲, 𝗲𝘀𝗽𝗲𝗰𝗶𝗮𝗹𝗹𝘆 𝘄𝗶𝘁𝗵 𝘂𝗻𝗶𝗾𝘂𝗲 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁𝘀. What’s your top priority when calculating ROI? Comment below! 👇 #RealEstateROI #InvestmentGoals #ShortTermRentals #DuplexInvestor #TriplexInvesting

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