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Underwrite STR Properties with STR Insights (Ep 618)

Ep 618

Kenny Bedwell, founder and CEO of SDR Insights, shares his expertise on analyzing short-term rental properties. He emphasizes the importance of understanding the market revenue drivers and studying the data to identify the key factors that drive revenue in a specific market. Kenny recommends evaluating properties based on a range of potential revenue, rather than a single number, to account for different scenarios. He also advises investors to look in the right markets, evaluate enough properties, and have a consistent deal flow to find profitable short-term rental deals.


Understand the market revenue drivers and study the data to identify the key factors that drive revenue in a specific market. Evaluate properties based on a range of potential revenue, rather than a single number, to account for different scenarios. Look in the right markets, evaluate enough properties, and have a consistent deal flow to find profitable short-term rental deals.

Grow your short-term rental business OVERNIGHT SUCCESS

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Click here to listen on Apple Podcasts.


00:00 Introduction and Background
06:11 Analyzing Properties: Gross Revenue and Gross ROI
11:46 Cash Flow vs. ROI Percentage
29:26 Final Thoughts and Conclusion

Read The Script Here

Jasper Ribbers (00:01.266)
Welcome back to Get Paid for Your Pad. Today's guest is Kenny Bedwell. He's the founder and CEO, I believe, of SDR Insights. And we are going to talk about analyzing properties today, analyzing short-term rental properties. Kenny is the number one expert on that topic in the space. So I'm excited to talk to you, Kenny. Welcome to the show.

Kenny @kenny_bedwell (00:22.721)
Thanks, Jasper. Thanks for having me on. And yes, STR Insights has not fired me yet, so I'm still the CEO. Yeah, man.

Jasper Ribbers (00:30.062)
All right. Well, I hope, I hope they will fire you at some point so you can get some, you know, vacations in and retirement.

Kenny @kenny_bedwell (00:37.037)
Yeah, seriously, yeah, some actual like breathing room. Yeah, for sure. Yeah.

Jasper Ribbers (00:42.498)
You can pull a Steve Jobs and get fired and then come back later and start another $100 million company in the meantime.

Kenny @kenny_bedwell (00:47.738)
Yeah, there you go.

Yeah, yeah. No, that's, yeah, no, but I'm excited to be on and excited to talk about short-term rentals.

Jasper Ribbers (00:59.026)
Yeah, a hundred percent, man. Like, so we, we had you as a guest speaker in a mastermind a couple of weeks ago, I think it was, and, uh, that was like super insightful, uh, your, your whole process of analyzing short rental properties and really understanding at a high level, like, you know, how, how much potential is here, uh, with this property, uh, based on like different compsets and tiers, uh, that you look at. And then also, you know, what, what can we turn it into? I thought that was really interesting. So, um,

I'm excited to dive into that a little bit more. But why don't you give us your background first and tell us a bit more about NCR Insights.

Kenny @kenny_bedwell (01:34.285)
Yeah, sure. So I have been investing in short-term rentals for over six years now. I have six properties myself. And I started SDR Insights like three years ago as a actual way for me personally to identify the right markets to invest in based on my goals. So

I came from an ex-corporate, worked at Citibank, data analyst, so data nerd, got a bunch of spreadsheets together, got a bunch of data. I was like, okay, what market should I go to? And that day took me there.

I shared that with some of my investor friends. They were able to use it and they convinced me to quit my job and do a startup. So I don't know what was going on that night in my brain, but anyway, they convinced me to do that. So we were all together gathered at a mastermind meeting in fact, and they were, they were like, Kenny, you need to, you need to do something with this, make this public. So I decided to take that leap. And I was already generating enough income from my short-term rentals to kind of have

comfort to walk away or at least convince my wife that I can walk away and take a risk. And so, right, exactly, right? And so anyway, so after that, I saw a mission. I was like, you know what? If I can do this for me, and I've seen other people achieve this, why not help more people find profitable short-term mental deals? So that's the vision, that's the goal, and that's what I'm set out to do, and that's what SDR Insights is doing.

Jasper Ribbers (02:44.051)
That's the hardest part.

Jasper Ribbers (03:05.342)
Yeah, and I think it's really important in the current climate to spend a lot of time with your due diligence before you buy property and put it on Airbnb. I think there's a few people around that kind of learned that the hard way in the last couple of years, I think so.

Kenny @kenny_bedwell (03:23.372)
Yeah, it was funny. In 2018, 2019, I had no idea.

what a pro forma or like those calculators, you know, you use for underwriting. I had no idea. I knew of them for certain types of, you know, real estate investing. And then we obviously had them at the bank for underwriting, uh, loans and, and even just regular investing, but for short-term rentals, I had no idea really how to use it. It was just like kind of piecing some like, right. It was like, okay, what's this property going to make? And then can I exit as a long-term rental? Like, will that make enough sense? I was underwriting everything as like a long

term rental and then if that made sense I'd consider it as a short-term rental and so the times have changed so where you really can't even do that anymore and you really have to I tell a lot of people are like well I want to find a deal like that where I could just I have to exit as a long-term rental it's still gonna make money and I'm like then it's not really gonna be the great greatest short-term rental and if you're trying to be a short-term I'll go all in on that and then you just need to make sure that you feel confident and comfortable in your numbers.

Jasper Ribbers (04:29.37)
Mm hmm. So walk us through your process though. You find a property on Zillow or wherever it is. What's your process for really analyzing that property and understanding is this going to be, am I going to get a good ROI on this property or not? Is it a good deal or is it a bad deal kind of thing?

Kenny @kenny_bedwell (04:49.493)
Yeah, yeah. So for me, trying to figure out if it's like a good deal or a bad deal.

So there's three things that go into underwriting. Number one, your gross revenue, which we'll probably spend the most time talking about that today. But then number two, understanding the debt service piece. Because like interest rates, frankly just kill everything now. You know, like 7%, 8% on some of these, especially the commercial products, 8% or more. It really just doesn't make sense for a lot of properties now. Whereas two years ago, three years ago, it was fine. So we need to make sure that works. And then finally, the last one that a lot of people mess up on are expenses.

So I see I hear it all the time. Oh, I forgot about this or I didn't know I was gonna have to do You know simple things are so many expenses So we have those three pieces and we look at the full picture that truly helps us know if it's a you know If it's a good deal, we underwrite it. However, the first one I always start with is gross revenue. So Before I start looking for properties

before I start analyzing deals and diving into numbers and really trying to understand the markets, I sit down and go, okay, whether it's with someone I consult with or myself, what are my goals? What do I want to cash flow? What do I want my cash on cash flow to be? And then based off that, I'll determine a metric I use called gross ROI.

So gross ROI is just your gross yearly revenue divided by the purchase price. So meaning if I find a property, for example, say my budget's $500,000 and my gross ROI targets 20% meaning that 20% of 500,000 is a hundred thousand dollars. So if I find a property that grosses a hundred thousand dollars at my budget of 500 K that means that no matter

Kenny @kenny_bedwell (06:34.445)
You know, I'm sure I'm gonna calculate all my expenses and look at the debt service and all these other pieces, but if it's 20%, there is an extremely high probability that that's going to be a really good deal for me based on my cashflow goals, right? And so the important thing to take away from that, number one, is everybody's goal is gonna be different. So Kenny's might be 20% and Jasper, you might be 22% or 23, but it's gonna depend based on the cashflow, your cashflow goal and your budget.

Jasper Ribbers (06:47.358)
Mm-hmm. Right.

Kenny @kenny_bedwell (07:04.125)
And so we start with that in that gross ROI metric because I've never really, so like I'll set out and be like, okay, cool. My budget's 350 or, you know, some nice round, pretty number of 500,000. But the property I buy is never 500,000 is like four 70 or five 10 or something stupid like that, you know? And, and so I'll come out and, but when I use the gross ROI, I go, okay, cool. I just take 20% of that.

Jasper Ribbers (07:04.255)

Kenny @kenny_bedwell (07:29.429)
and that's what my gross number needs to be. And if it doesn't hit that number, it's not gonna make sense. I don't need to look at the expenses, I don't need to look at the debts, or I don't need to look at anything else. It ain't gonna make sense for me. So that's the first thing I start with.

Jasper Ribbers (07:36.625)


Right. And just to dive a little deeper on that. So does the gross revenue, does that include the nightly rate and the cleaning fees and everything you would essentially like any income that you would drive from the channels? Or is that just the nightly?

Kenny @kenny_bedwell (07:59.833)
Yeah, that's a good question. So typically when I say gross revenue, I look at just the nightly rate. So I'll take, I'll take, because I consider a cleaning, especially cleaning, is a separate line item in my pro forma or my underwriting process. Meaning like it's income, the guest pays me that additionally. Plus, I have to expense it. So I consider it a pass-through. So in all of my pro formas,

Jasper Ribbers (08:25.641)

Kenny @kenny_bedwell (08:28.105)
I will say, okay, cool, $200 cleaning fee, or it doesn't really matter because I'm gonna put it as an expense at the same amount too, so it cancels itself out. So I'll literally play with the nightly rate to get it to where I wanna be, and then whatever the ADR is in the occupancy to get that nightly rate. So I'm looking at the gross yearly stuff.

Jasper Ribbers (08:37.062)
Mm-hmm. Right.

Jasper Ribbers (08:45.13)
Sure. Yeah. And then do you have, do you have kind of a understanding of, okay, if, if I can do a hundred thousand gross, excluding the fees, right? Excluding cleaning fees on a 500 K property. Do you roughly know what your net is going to be based off of that? Like you're probably going to, if you don't include the cleaning fees, then you're probably going to be, I don't know, maybe like 12 to 15% net based on that.

Kenny @kenny_bedwell (09:13.477)
that? No. So typically what we'll see, well I guess it depends on the debt service piece, but usually your profit should be about 30% of your gross revenue. So take out the claim. Correct.

Jasper Ribbers (09:27.654)
Right, but that includes the debt service, right? Includes, yeah, okay, gotcha.

Kenny @kenny_bedwell (09:31.245)
So if, for example, if I have a good, now, and this is, there's some assumptions in this, but assuming the gross ROI, I've set the gross ROI metric and I'm meeting my gross ROI. So $500,000 property is generating 100K, great. So if I take 30% of that, that means 30, about $33,000 or $30,000 will be my, will be my profit. And that's usually what it comes out to in a pro forma.

Jasper Ribbers (09:58.154)
Right. Okay. Gotcha. So if you were to buy, if you were to do a cash, a cash buy, then obviously that will, you know, it will be like a different, a different picture. But essentially you're saying like, including that service, you'd be left with about 30 K on a 50, $500,000 purchase. You would finance it. You'd probably put 20% down. So you have 400 K of financing.

Kenny @kenny_bedwell (10:22.245)
I'm going to go ahead and turn it off.

Jasper Ribbers (10:24.626)
So you put in 100k yourself, so then your return on your investment will be 30%.

Kenny @kenny_bedwell (10:31.616)
Yeah, assuming I put in $100,000 into the deal. So yeah.

Jasper Ribbers (10:34.878)
Right. That's pretty high. So you're shooting, you're shooting for a pretty juicy deal. Right?

Kenny @kenny_bedwell (10:40.985)
I mean, so, okay, we'll back up a little bit. So a lot of people have seen this are like, okay, cool, I get this all the time because I use the 500 and 100 example. A lot of people are like, well, where are you seeing those types of deals? Number one, they do exist out there. They're just harder to find. We can talk about that a little later, but what am I personally going for? I don't care about the ROI percentage. I care about the cash flow. So I won't buy a property that doesn't cash flow $50,000.

Okay, I don't care if it's only a like a 20% cash on cash return or a 15% cash on cash return. If I'm going to cash flow $50,000, that is my goal because that's what my time is worth to me with running short term rentals. So I've gotten rid of almost all of my properties that cash flow less than $50,000 because they're just not worth my time. And so I base everything off of that.

Jasper Ribbers (11:08.396)

Jasper Ribbers (11:22.686)

Jasper Ribbers (11:32.098)

Kenny @kenny_bedwell (11:34.177)
and then my ROI goal will follow. So typically, but yes, normally I do look for kind of outrageous deals. So, but my minimum though, my minimum is all based on that cashflow number and my budget.

Jasper Ribbers (11:40.266)
Yeah, no, it's so good.

Yeah. All right. So you find the property 500 K. Now, how do you figure out if you can gross a hundred K on that?

Kenny @kenny_bedwell (11:56.473)
Oh, all right. So we're like, yeah, one minute. Oh, geez, okay. Yeah, I'll break it down and then we can dive into each segment, I guess. So the first thing I need to do is number one, I need to make sure I feel comfortable with the market revenue drivers. So when I was with your group, and we talked about this a lot, is understanding.

Jasper Ribbers (11:59.676)
In one minute. No, just kidding.

Kenny @kenny_bedwell (12:20.509)
what drives revenue in those markets. So a lot of us are used to just looking at deals on Zillow first or properties on Zillow first or Redford, wherever the MLS properties are, looking at those and then trying to do the research behind it. But if we don't know what actually drives revenue in that market, then we're gonna make a lot of assumptions and we're basically inviting a lot of risk into the deal analysis, meaning that

we go, wow, this property, I just saw this really cool property that stands out to me because it has these really long, cool, long range views. But the question you have to ask yourself, and sometimes it's really not as obvious as we think it is, do long range views actually drive revenue? And then on top of that too, does that property have the same attributes as other properties that have those long range views? Because you might just assume that's it. So that, if I…

I know I've gone a minute already on that one, but a really good example of this is someone sent me a property in North Carolina, one of those weird, have you seen those weird hexagon houses? They're octagon, they're like these weird, they're like, they almost look like yurts, but like huge, they're literally like 3,000, 2,000, to 3,000 square feet. And they're houses, but they're in the shape of like a yurt almost, okay?

They're all over North Carolina. They're not super common, but they're common enough. I see them a lot there. And they're usually like in the mountain markets and they always have like really nice views. However, when we look at the data and using those as short-term rentals, they don't make that much money. And so because they're just not like your typical house that someone would want.

Even though they have, you know, it's large, it's got views. And so one of my clients, she sent me one. She's like, Kenny, I looked at the market and I saw all the properties that were in the top, you know, 75th percentile or whatever, all had long range views. And this one has long range views. Therefore it should make in the top 75th percentile or higher. And I said, okay, cool. Let me check it out and validate that. So sure enough, all the properties were there that had really the top ones had views. However, she, for like, she, she stopped there.

Kenny @kenny_bedwell (14:26.341)
There's other revenue drivers. There's quality of the property, the furnishings and the amenities. And so all those properties too, also had, they were like log cabins. So not only did they have views, but they were all log cabins. And then the ones that weren't were making less. So when we look at the patterns and trends in the market, all the patterns and trends in the market, it tells us the full story. So I'd like to start there and then hunt for properties or I'll start there and then go, okay,

Does the property I'm looking at have those same attributes as the ones that are making a lot of money in that market?

Jasper Ribbers (15:02.046)
Mm hmm. Yeah. Can you can you explain your tear process that you share with us in the in the mass? My I thought I thought that was very insightful.

Kenny @kenny_bedwell (15:10.913)
Right. So when I'm studying the market, the first thing I like, so, you know, you, you send me a property, I look at bedroom count. So then, you know, obviously how many bedrooms it has. And then I look at the market. Okay. So the market as a whole, I'll pull the data set.

So our software, STRI Insights, has you can export all the market or all the properties with that bedroom count. And then what you'll see in the data set, if you sort by revenue, is you'll see groupings or clusters of properties by revenue. And I call these tiers.

And so we saw this where we looked at a market and there were, you know, there was, there were four bedrooms in this mountain market, North Carolina, and the top one was doing like 175 and the bottom one was doing like 38,000. It was like, well, that's a wide difference. But as we studied these like tiered groupings, meaning like we saw like 38 to like 45, and then there was like a jump of, you know,

properties like nothing was doing between all the way up to like 60,000 It was like 60 to 75 and then like there was another grouping it went all the way up to 175 So we looked at these groupings and we found that they had different attributes for one another So once at the top they had views and a pool then the next set had views then the next set had you know They were really nice, but they didn't have any views and the next set was like, okay

but maybe had a hot tub and it just kept going down, but it was really easy to like break it down black and white when we break it into groupings. And the data, to nerd out here, the data will tell us in most of these markets. So 90% of markets, you can see these clear cut groupings by bedroom count, and you can see what really drives revenue without having to guess and make the assumption that this is the thing that drives revenue. And I'm gonna bank all that, my underwriting on that.

Jasper Ribbers (17:03.516)
What are some of the biggest defining elements that will move a property from one tier to the next one?

Kenny @kenny_bedwell (17:11.829)
Right. So it does depend on the market, but the four kind of categories I have. So location, quality of the property. So is the property updated? What's the interior extra quality like? Design decor. So like the quality of your furnishings and then finally amenities, but every market's unique. So I've had people and it's kind of crazy. The assumptions people make.

Jasper Ribbers (17:31.499)

Kenny @kenny_bedwell (17:38.113)
where they'll go to a beach market and it'll take a property that's a mile away from the beach. And like the outer banks is a really good example. Most of the properties there are just like crap in terms of quality, but they're right on the beach and they're really good location. They make all this money. And someone will take a property that's a mile away and they'll fix it up, make it look really good, add the best furnishings, make it look better than the properties on the beach. And then they assume because it's of higher quality that people will wanna stay there instead of stay on the beach at the crap hole.

to say it lightly, you know? And so, like, it just doesn't work like that. That's not the market revenue driver. And so every market is different. And so we've got to understand what it is. So to get to another tier, we have to ask the question, number one, okay, is this property, if we're analyzing property, and it's like in a tier two or tier three, is it possible for it to be a tier two or tier one property? If yes, what does it need to have? Like, oh, well, we need to…

put it on stilts and move it to the beach. Okay, well that's not possible, so that's not a deal, right? But it could be just simply like it needs amenities or it needs in urban markets especially, just better design and decor. Those are things we can add to the property. Those are small investments. We call those value adds that we can add to increase the revenue and move it into a higher tier. And then the data set is supporting that like…

hypothesis or that theory that you have that it can move to a different tier. Instead of relying on one or two properties, you're relying on a whole data set to kind of back up your idea. That removes so much risk from investing in short terminals. Cause there's a lot.

Jasper Ribbers (19:07.188)

Jasper Ribbers (19:13.034)

Jasper Ribbers (19:18.866)
Yeah. No, I mean, you know, it's, it's pretty crazy to see the income, the revenue, um, potential when you're like right on the beach versus literally like one block off the beach, right. Or when you're on the ski slope or you're, you know, 200 yards away.

from the ski lift, right? I mean, it's huge. Like, you know, we go skiing every year, right? And for me to be on the slope where in the morning I put on my gear and I'm boom, I'm right on the slope. I go to the ski lift, you know? And then when I come back in the afternoon, like I can go and grab a beer somewhere and I don't have to worry about catching the bus or I don't have to drive, you know? I can just enjoy my time, see the sunset, have a couple of drinks, and then I just…

ski down right to our house. That is worth so much money to me. And that is worth so much. And to your point, you can make a pretty big investment mistake if you were to look at the CompSat, and you're like, OK, well, let's look at this cluster of properties that are within a radius of half a mile or something. And then you're like, oh, OK, well.

Kenny @kenny_bedwell (20:16.516)
Yeah, I agree with that. Yeah, seriously. No, I mean that's…

Jasper Ribbers (20:39.126)
You know, they do an average X and then you don't realize like, okay, yeah, but the properties that are right on the ski slope, they're doing like twice the amount. Right. Versus block couple blocks away. Right. So like you have to, yeah, you have to really understand like those drivers and like how much, how much revenue do you allocate to those drivers and really understand that and sometimes it's, it can be like kind of unexpected things as well, you know what I mean? Like, yeah, location, the view, like hot tub pool, things like that.

But I analyzed this little tiny little sub market in Lake Tahoe. And there was a, uh, there was some sort of like HOA park that's that certain properties people would have access to, you know what I'm saying? So like there's certain properties where the owner had, I don't know, like a, a membership or something with that, with that park. And then if you stay at a property, you get access to that. I noticed like,

Kenny @kenny_bedwell (21:22.689)

Jasper Ribbers (21:35.022)
there's a fairly significant difference in revenue from the properties where you had access to the park and the properties that didn't have access to the park.

Kenny @kenny_bedwell (21:44.489)
Right. Yeah, no. Yeah, especially with the amenities. And I think that but once again, you like you found like the data set provides kind of the answers. But if you're just kind of looking and not studying that market and looking for those like sweet spots in the market, and you're flying, I call it flying over 30,000 feet, you're not going to catch that stuff. You won't. And that's why people struggle to find deals.

Jasper Ribbers (22:06.459)
Mm hmm. Yeah.

Jasper Ribbers (22:11.347)
Yeah, it's like anything else. You need to spend a lot of time and effort to really dig through the details and really take your time to understand it very, very well before you can make these decisions. But especially now, right? I mean, like five years ago or 10 years ago, you buy something in the city, pretty good chance you'll make good money on Airbnb. Not anymore.

Kenny @kenny_bedwell (22:36.877)
Yeah, now you're just banned. So, yeah, it's tough. It's definitely transitioned the last few years, so.

Jasper Ribbers (22:45.534)
Yeah. What are some of the biggest mistakes? Like other than like, you're not spending enough time to really understand the market. Like what are some other like, you know, common pitfalls or mistake that people make?

Kenny @kenny_bedwell (22:59.717)
So a lot of people, I know a lot of people listening wanna know if you're trying to find a deal. Okay, Kenny's been talking great numbers and process sounds really good, but how am I finding deals? And so the mistakes I see investors making who aren't able to find deals, there's really three. So number one, they're not looking in the right markets.

A lot of people are attacking very saturated markets, markets where everybody else is investing or has invested for previous years, kind of run up on the prices there. And so they're looking in those places. Number two.

investors are not looking in enough markets. I run into this all the time where they're like, Kenny, I'm looking to the market you told me to look into or I'm looking into places, you know, SCR Insights or the data says go to, but I can't find any deals. And I ask them, okay, cool. Well, where are you looking? I'm looking in this tiny, you know, ski market. It's like.

Great. You know, what are the chances of the right property and the right conditions? Like it's a probability game. It's a numbers game, right? So the, and which leads to the third point, the biggest mistake too is deal flow. A lot of people who think finding a deal today should be easy and there's an easy button. There isn't. You have to look at enough properties. You have to evaluate. I tell people evaluate eight to 10 properties a day.

Not look at eight to 10 properties on like, oh, Zillow, I scrolled, there's eight to 10 properties. No, I'm talking about evaluate eight to 10 properties that have potential to be good deals. Not all of them are gonna be good deals. If you do that, you look in the right markets, you look in enough markets and you evaluate eight to 10, you will find a property in 21 days or less, guarantee it. So those, that's my, and then enough markets. When I say that's five, five markets is my own rule of thumb. So five markets, five right markets, eight to 10 deals a day.

Jasper Ribbers (24:44.347)

Kenny @kenny_bedwell (24:48.385)
you will find something that makes sense in less than three weeks.

Jasper Ribbers (24:52.066)
But how much time would you spend on each property? Cause like eight to 10 sounds almost like a full-time job.

Kenny @kenny_bedwell (24:58.101)
Right, but if you know what your gross ROI is, so if it's 20% for example, that means you only need to know what the gross revenue is. And if you're studying those markets, you know what the tiers are. So you already kind of know what the revenue is when you see these properties, right? So it's really just, okay, well, this property is gonna make, I think it's gonna make somewhere between 80 to 95, or 80 to 100,000. Okay, I'll take 80 and divide it by the purchase price. Does that give me 20%?

Yes or no? No, okay, well that's not a deal. So I'll go on to the next, you know, and it's like, and then we're also just quickly trying to find properties that meet the attributes we're attacking. So if it's like, I need properties or views, well I'm on Zoll, I'm only gonna be looking at properties that have views. So, and you do this. So to me, if you spend 30 minutes to an, I mean, if you can do an hour, that's great too. I think that's even better. So more time you can spend on that. But 30 minutes to an hour every day, three weeks doing exactly what I just told you.

You will find a property in three weeks or less. You don't, it's a problem with one of those three things. So.

Jasper Ribbers (26:02.134)
Right. Yeah, you can, like, if you're just kind of waiting for something to fall on your desk, and you know, kind of thing, then… Oh, yeah. Right.

Kenny @kenny_bedwell (26:07.981)
or a realtor to send you a deal. That's a common mistake. Oh, well, I'm on their email list and I'm like, cool. Yeah, how many people are on their email list? So are you like, that's the thing too. I mean, most of the good, a lot of the good deals that I get sent for my clients, the realtor will send it to me first and they'll say, hey, do you have anybody who you think is interested in this?

and it could be off market, but a lot of them aren't. They're like one day or like a few hours or the realtor's listing it. And I'm like, yeah, hold on. Let me just blast this out real quick to my people, and because I know their situations, like I'm like, okay, this person, this person, this person could work, but we're able to quickly analyze and do that and act fast. But if you're just relying on emails,

Jasper Ribbers (26:41.742)

Kenny @kenny_bedwell (26:57.333)
relying on there's some generic services that blast out deals to, to thousands of people. Yeah, you're not going to find anything. So, you know, like, it's just, yeah, if you just break down what you're currently doing, you should be able to see like, okay, yeah, I'm either just not looking in the right places or I'm just not looking enough with properties. So

Jasper Ribbers (27:05.328)

Jasper Ribbers (27:17.73)
Mm-hmm. Yeah. Yeah, makes sense. Awesome, Emel, that's a very useful info to have. I appreciate you coming on here and sharing this with us. What if people are interested in working with you or your tool, SDR Insights, what's the best place for them to go and connect with you?

Kenny @kenny_bedwell (27:37.549)
Yeah, absolutely. So number one, I am available on social media too. If you wanna reach out and message me one-on-one, just at Kenny Bedwell on Instagram or Facebook. So feel free to hit me up there. But you can always go to strinsights.com. You can learn about the software. We also have our consulting services we do, it's just strinsights.com forward slash property dash finder where we help people identify profitable short-term rental deals because that's what we do. So.


Jasper Ribbers (28:07.774)
Boom! Awesome, man! Any final thoughts before we wrap up?

Kenny @kenny_bedwell (28:12.249)
Oh man, I always have final thoughts. I have a lot of thoughts. I could just, yeah, go on for days on this stuff. But yeah, the biggest thing though, I'll just, recommendation, common mistakes I see people make and really mess up with underwriting and doing this whole process is always evaluate on a range. So we talked about earlier the tier system, or the ranges of revenue, like,

The fact of the matter is when I underwrite a property, I don't go, it's gonna make $100,000. Because the probability of it making $100,000 is extremely low. It's either gonna do you above it or below it, okay? So if that's the case, then we need to evaluate on a range. And typically my rule of thumb, if you're like, okay, well, what's the range, Kenny? The market, the tiers are dictating the range, but also you can use about a 20% too to be safe. But you wanna look at it from a good, better, best scenario.

Too many people are underwriting in the best scenario and they're not hitting that. So look at a good, better, best. It'll help you understand your risk. It'll help you make, and you'll feel more confident in the deal, in the decision making too, if it's a deal. So do that. Just anything you take away from anything I've said, look at and run revenue on a range. So, definitely. Yeah, very good. My job.

Jasper Ribbers (29:26.094)
Boom. That's it. That's it, guys. Listen to Kenny. All right, Kenny, appreciate it, man. Thanks for having me jump on here. I'm sure we'll bring you back in our mastermind. It was very fun to have you in our mastermind and literally analyze properties on the call live. It was amazing. So all right, man.

Kenny @kenny_bedwell (29:41.441)
I loved it.

Kenny @kenny_bedwell (29:45.653)
On the cone, yeah. Yeah, it was good. It was really good. Yeah, so thanks, man.

Jasper Ribbers (29:50.302)
Thanks and thanks to all the listeners. Hope you enjoyed this episode and we will be back soon of course. We'll see you next time

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