Upscale Markets

This table shows what the combined AirBnB income and rent increase PER UNIT would have to equal to just offset the monthly interest payments ( @ 4.5%) on the 'Max Break even' rehab loan. For example suppose an upscale rehab cost $141,000 - and the rehabbed unit then turned an extra $750 per month from AirBnB income and rent premium. The bottom line income increase - AFTER debt service - is a healthy $250 per month.

In the upscale market of Manhattan for instance, a two bedroom apartment rents for $5,000 per month. A 20% combined revenue boost - from AirBnb and rehab rent premium - is enough to pay the interest on a rehab loan up to $282,000 ! The all builtins rehab might turn out to be among the most profitable value add rehabs for the upscale market sector. That possibility alone warrants a careful and rigorous financial analysis.

Click on the image above to see more on an upscale rehab example. It reworks the floor plan used for an earlier post designed for a mid market sector builtin rehab. Oh and by the way, the movie still is taken from http://publicdomainmovie.net/movie/my-man-godfrey-1936, a site where for various reasons films are no longer under copyright. My Man Godfrey was filmed at the height of the Art Deco era and is an excellent movie based on the novel written by Eric Hatch. The film features the amusingly written gossip of the period ( as opposed to the savage character assassinations so common nowadays ). For example, from a column titled PARK AVENUE CHATTER by Hatton Mann, we are gently informed that "The Misses Bullock have returned from a long sojourn in Europe where the younger daughter, Irene, (So it is rumored) was sent to forget her latest broken engagement."

The blue wallpaper with gold sun and stars is provided courtesy of Wallpaperget.com