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cover of episode How to MAX Out Your Cash Flow Per Property with “The New Airbnb” (Rookie Reply)

How to MAX Out Your Cash Flow Per Property with “The New Airbnb” (Rookie Reply)

2025/4/18
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Real Estate Rookie

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Garrett Brown
专注于短期租赁和房地产翻新的房地产投资专家,常常实现20%或更高的回报率。
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Tony J. Robinson
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Tony J. Robinson: 我认为,如果房产空间足够大,可以考虑增建卧室和浴室,以提高合租的盈利能力。在合租模式下,公共空间利用率低,可以将其改造成可出租空间以增加收入。如果已经拥有房产,可以考虑通过增建卧室和浴室来增加出租空间,从而提高收入。在决定是否增建浴室之前,应参考当地类似房产的浴室数量比例。在分析市场数据时,应根据具体情况对数据进行筛选和细分,例如按卧室数量进行筛选。远程管理短期出租房的关键在于拥有可靠的团队(清洁工、维修工)、合适的技术(PMS、电子门锁、检查软件、数字指南)和定期实地考察。免责声明并不能完全避免诉讼风险,即使有免责声明,房主仍然可能因疏忽而承担责任。建议寻找替代方案,例如提供其他更安全、更吸引人的设施或体验,来吸引客人。 Garrett Brown: 合租或按房间出租,就是将整套房产的每个房间分别出租给不同的租客,而不是整租给一个家庭或租客,从而提高现金流。合租策略越来越流行,因为它能显著提高传统单户住宅的投资回报率。对于合租而言,浴室数量不足可能会成为一个问题,这在大学城等地区比较常见。如果浴室数量不足,可能会影响租客体验,建议考虑增加浴室数量。如果浴室数量不足,可以考虑增建浴室,这不仅能增加房产价值,还能提高合租的吸引力。在决定采用合租策略之前,需要调查当地市场对这种模式的需求。在选择投资市场时,应考虑个人偏好和市场数据,例如供应增长、入住率和收入等。在选择投资市场时,应使用AirDNA、Price Labs等网站分析市场数据,并关注市场趋势。分析市场数据,例如供应增长、入住率和收入,以评估市场的健康状况。如果市场供应增长趋缓或下降,则表明市场趋于平衡,是良好的投资信号。DSCR贷款会将房产视为一项业务,评估其收入是否足以覆盖债务。DSCR贷款可以作为第二视角,帮助评估房产的盈利能力和贷款风险。一室一卫房产的投资价值取决于具体市场,在某些市场可能表现出色。在度假市场,中等大小的房产(例如两居室或三居室)可能价格过高,收入不足以弥补成本。在选择房产大小方面,建议选择一室一卫或更大户型的房产,避免选择中等户型房产。建议在远程管理短期出租房时,选择了解短期出租房的房地产经纪人。建议选择了解短期出租房的房地产经纪人,并了解其经验和当地资源。不建议在Airbnb中提供斧头投掷等高风险活动,即使有免责声明,也可能面临诉讼风险,保险公司可能不会承保。不建议在Airbnb中提供高风险活动,应考虑与当地企业合作提供类似的活动,以避免责任风险。建议选择更安全的娱乐设施,如玉米洞或迷你高尔夫球场,以避免责任风险。保险公司通常会根据风险评估保费,如果活动存在高风险,保险公司可能会拒绝承保或提高保费。

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If you've got money saved and your financing figured out, but you're also having analysis paralysis on what market to jump into, this episode is for you. Today, we're answering questions about real world problems that rookie investors are facing right now. We're tackling everything from how to find the right market when you already have financing and a very specific buy box to what's the best way to make co-living work as a strategy.

So what's up guys? My name is Tony J. Robinson and today I have Garrett Brown from Bigger Stays filling in for Ashley Care. Garrett, what's up brother? How you doing today, man? Doing good. I got some big shoes to fill with Ashley being gone, but I'm hoping to step up to the plate for everyone. You got some big shoes. You gotta have your repertoire of like...

Weird 90s movies quotes in your back pocket to keep everyone on their toes, man. But excited to have you here, brother. So let's jump into the first question. So the first question here says, would a pad split rent by the room work on a five bed, two bath property?

I'm debating either selling or doing a pad split on my five to rental. For a pad split, I could realistically get five people or at least four filling the house. One bathroom is a private en suite to the master bedroom. So there would be three to four people sharing a single vanity full hallway bath.

"I could charge more to the person who gets the master bedroom is what I'm assuming, but has anyone done a rent by the room strategy with a similar house layout?" So co-living, pad split. I think first, Garrett, let's just kind of break down what that strategy is and how it differs from a traditional long-term rental.

Co-living or rent by the room is kind of exactly what it sounds like, right? Instead of having this big five bedroom, two bath where you rent it out to one family or to one tenant, you break it up and you rent out each individual room. So instead of having one tenant for all five bedrooms, you have five tenants each with their own room or you if you're living in one of those units as well.

And I think the reason that the co-living strategy is gaining a little bit more traction, A, because there's opportunities out there like Pathsplit now which are making the facilitation of this a little bit easier. But B, it's a way to really increase cash flow. And we've interviewed multiple people, Miller McSwain, the Nossums, about the co-living and rent by the room strategies. And it really is a way to kind of juice the returns from a traditional single family property.

So that's kind of what it is and why it's gaining some, I think, getting so much traction now. So I guess, Garrett, in your perspective, thoughts on because it sounds like this person likes the idea of co-living, but their biggest concern is just like.

Hey, is it unreasonable to have one person or one bathroom for three to potentially four different people? So what's your take? You know, I don't have a lot of experience with this type of model, but the things I do know about it is it's very popular in more college towns and things. You have different roommates renting out rooms and that kind of perspective. Me personally, I would probably...

I would think that the bathroom thing is going to be a logistical issue within your guests and roommates. A lot of times when I've heard this be successful, they usually have a higher bathroom count. They maybe can...

you know, supplement this amount of guests into it. I would, I would be curious if your market has the desire to have, you know, different roommates in each room and things like that. Cause not every market really has the appetite for this type of thing. Do, are there other successful models in that area or are just, you know, a full single family home? Is that the more traditional model there that you're probably going to have a higher and, you know, a better guest, you know, a better tenant pool, let me say.

to actually attract from. So I personally would be a little wary with that bathroom count, but maybe there's an opportunity to add another bathroom or something. Cause then not only are you starting to get into adding equity to your place, but you're also making it more suitable for this type of arrangement. So I'd be a little wary of this, but if you can add that, it may be something to consider. What are your, what are your thoughts on this, Tony? Yeah. I mean, you kind of took the words out of my mouth, Garrett. I think, I,

If the property is big enough, could you potentially add the additional bedroom, bathroom, whatever else that you need to really make this work? And when we interviewed the Nossums on the podcast, that was kind of their strategy. They would go out and find a five bedroom and then they would convert, you know, say that there's a separate living room, dining room than like a formal, you know, living room. They would convert one of those spaces there.

into more bedrooms, you know, and into more bathrooms. And they would really squeeze what they could out of that square footage because they

And it makes sense, like their thought process was in a co-living strategy or with the co-living strategy, I should say that people aren't really just like hanging out in the living room or in all the living spaces like that. So if you've got all these different communal spaces, it's kind of not always going to be used. So can we instead turn that extra space into rentable space to really juice up the revenue? So I kind of like that approach where if you've already got the asset and

how much more would it cost to slap up, you know, a few pieces of drywall in the closet?

add another bedroom, slap together a few pieces of drywall, a sink and a shower, you know, throw in a bathroom. And now you've got an additional bedroom with some additional bathrooms as well. So I think that would be my strategy. I agree. As long as you get everything permitted within wherever the area you're at. Like I think from a long-term play, that adds a lot of value to your bottom, to your net worth, and at the same time makes that model just seem so much more reasonable and like you'll get a better tenant pool that comes around.

And I guess the only last thing I'd say is just like, also look at your competition. And if you're looking at other room rentals and you see that the ratio typically in your market is five bedrooms to two bathrooms, then you're fine. You know, it's like, okay, cool. Then we can just roll with that. But if you notice that most of the other room rentals, it's like,

five bedrooms to three or four bathrooms. And yeah, it's obviously an issue you got to go address, but leaning into the data to help you make that decision would probably be a, be my take there. I can agree with that and see, see what the capacity is for, you know, check Airbnb and other places like that to see if,

there's even an appetite maybe for there and know that you're going to have more logistical issues to dealing with five different tenants in one house, as opposed to one tenant renting out the house and just be prepared for that as you're stepping into it. All right, guys, we want to start talking about short term rentals, right? Which is the kind of bread and butter for me and Garrett. We've got some friends from north of the border in Canada who are looking to buy in the US and we want to give them a little bit of advice on what it looks like to buy in this market. But first, we're going to take a quick break to hear a word from today's show sponsors.

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All right, guys, welcome back. Garrett, what's our second question for today? So the second question for today is, my husband and I are looking at buying our first STR. We are Canadian, wanting to invest in the U.S. market as it is far more stable than Canada. I had an STR back in the day when Airbnb started.

My husband is a contractor and I'm in real estate so we were wanting to do a value add. I do all the design work for his company and we both love water and we're definitely and we definitely believe in the philosophy of investing of where you would like to vacation. I also would like to do a one bed one bath place as it feels as a bit of an untapped market.

We like to stay in properties nicer than our home when we travel, and we always find it difficult discovering luxury one bed, one bath, smaller accommodations, and always seem to end up renting a two bed house that is far bigger than what we require just to get the luxury component. We will be looking at a DSCR loan.

So if we were to start all over again, what advice would you give a rookie Canadian investing in the US market? It will be our first time owning a STR short term rental remotely. So all advice is welcome.

We love North Carolina, South Carolina, Georgia, and Florida. We like water. We are not interested in the West Coast. Our goal is to eventually do a land hack and then lead up to a boutique hotel. This is definitely an interesting, you know, there's a lot of things to unpack there. This is somewhat of a model I followed when I was building up some of my short-term rentals, doing land hacking and really trying to dominate the smaller cabin market. So I'm kind of curious what your thoughts are as this all kind of unfolds.

came about as we were talking about it, Tony, and where your thoughts are for them. I think a few things to unpack in this question, but it sounds like maybe the first part is like,

kind of where, you know, you mentioned a few different markets. But then the other piece is like the remote management side, right? So I think there's two different things to tackle here. On the where, it sounds like for you, like you said, investing in a place that you also want to vacation is important to you, which I totally appreciate. Not the same for us in our portfolio, but everyone kind of approaches this differently. So I think as you're going through and you're looking at potential markets, what

I would really encourage you to look at all of the data associated with that market using websites like AirDNA, Price Labs, and look at the year over year data and just understand how are things trending in that market.

I've had the good fortune of looking at a lot of different markets in a lot of different cities and working with different people as they look to buy their first Airbnbs. And because of that, I've seen trends just kind of nationally across a lot of different markets. And the trend that we typically see is

2020, you know, COVID, really weird year. 2021, post-COVID boom, you saw supply increase dramatically. You saw rates, occupancy, revenue increase dramatically. 2022, supply continued to grow. The growth in revenue died off a little bit. 2023, supply

Things reversed in a lot of markets where you saw revenue come down because supply growth was continuing to increase. So you saw this this thing happened where supply ballooned. It pulled down rates because there was this oversupply. And then twenty twenty four in many markets was this year of like rebalancing where we started to see gains again because there were a lot of people who left. There are a lot of people who jumped in that shouldn't have left.

And the ones that stayed were the ones who are really doing this the right way. So just looking at the overall data to see which way is this market trending, because say that the market you would like to vacation in, what if supply is still growing at 20% to 30% every single year? Is that a sustainable market for you to invest in for 2025 and beyond? But if you look and you see the supply has gone to almost zero from 2023 to 2024, and

then that's a good sign, right? Because it means that things are starting to balance out on that market. So I think before you even really go deep into a market, look at the underlying data. What does supply growth look like? What does occupancy look like? What does your rev part look like?

Right. And look at those numbers to kind of gauge the health of that market. Yeah, that makes total sense. And I think it's great advice for people looking into specific markets that, you know, they might have seen, you know, in the top 10 Airbnb places to invest in. And a lot of those lists that come out, you know, I'm I'm guilty of making a ton of those types of lists for bigger pockets quite a bit. And sometimes those markets, once they're getting publicized so much, they might become quite, you know, I don't.

Yeah, not the best, for lack of better words. So that's when you use the tools that you have out there. And I think they talk about a DSCR loan, I think, which is a debt service coverage ratio loan, which essentially this just means does the property, lenders will look at the property as a

business, like how much income it actually produces, if you'll be able to cover that debt that is on the property, aka your mortgage. So these are good tools to use because then you also have a secondary set of eyes that is looking at the property with you from a lending standpoint that might be able to point out to you like, hey, this property isn't going to work for us. And there's a lot more restrictions around DSCR loans sometimes of how they price them and where they get some of their data from.

This might be a good use of this type of loan too though, because they might be able to have be that second set that needs to tell you like, hey, you might think this property is going to make this much money, but looking at the data we use,

It's not going to cover the debt and we're not gonna be able to lend on and that might be a time that they actually save you from getting into a property that you didn't necessarily want to. And to kind of talk about where she was, you know, mentioning the one bedroom one bath is kind of an untapped market. I would say that really depends on the market, because I can agree there are some

specific areas that a one bedroom, one bath might excel and it might be something kind of underutilized. I kind of think that the gap in the market right now is you either need to go smaller like a one bedroom, one bath or go really large, you know, five bedroom to that. Because I think when you get caught in that middle ground of a, you know, a two bedroom, a three bedroom, you're probably probably

probably paying a premium to get that property especially in a vacation market and you know this is all market specific but just from a holistic viewpoint that revenue that you're going to have coming in probably isn't going to be able to you know compensate for what you're putting down into the house so if you're kind of stuck in that limbo I would lean towards you know an all-market just specific like I mentioned lean towards a one bedroom one bath

or even AirDNA not long ago put out one of their major reports talking about how larger homes are still available

some of the bread and butter for short-term rentals in most markets around too. So I wouldn't, you know, I just wouldn't get caught in the middle there particularly, but each market is different. And sometimes, you know, the data might say completely different. And that's why you need to really, really focus on what information is out there for you and be, you know, kind of a research nerd when it comes to looking into these particular markets. Yeah. I think you bring up a really good point, Garrett, of different bedrooms counts perform differently depending on the market.

And in some markets, more so in like the urban and suburban markets where there's a lot of competition from hotels, the one bedrooms and the studios have actually fared worse because people oftentimes there's so much hotel inventory. Right. And it's the kind of larger properties that you mentioned that tend to do well. So I think for whatever market it is that you're considering, yeah.

not only look at the market wide data, but then also filter that data down. So you're looking just at the one bedrooms and see how those have fared because maybe the overall market is seeing a recovery. Maybe the overall market is seeing growth when you filter down to just one bedrooms. What if it's the inverse, right? Or maybe it's doing even better than the market. So I think there's, there's something to be said there to, to filter it down. I guess the other part of this question was the remote management and the

I think, honestly, managing remotely is a lot easier today than it would have been five, you know, 10, even five years ago, right? But there's, in my mind, a few key things that you need. And I'm curious to get your take as well, Garrett. But the first, you need your people, right? So you need a good cleaner. You need a good handyman. They're going to be your eyes, your ears on the ground. They're going to know the property better than you will because they're in it, you know, especially your cleaners after every single turn.

So getting a really good cleaner, getting a really good handyman, those are the first things. Second is your tech stack. And the ones that I would highly encourage that you get are obviously a PMS, electric or keyless entry pad, right? We use the Schlage on code. We like using software like Breezeway that's going to allow you to really inspect the work your cleaners are doing.

And then a digital guidebook, right? Like there's other tech you might need as well, but in terms of like the remote management piece, those are kind of the key ones that I would see. So you've got your tech handing a lot of the heavy lifting. You've got your people reinforcing. And then you, I think even when you're remote, it's still good to get out there a couple of times a year just to get your own eyes on it.

You know, we we were at our properties in Tennessee right before Christmas this year. We hadn't been because we had a baby and it was just always good. We have amazing cleaners, but they still miss things. Right. And they might think something is fine that you and your mind actually want to change and you want to fix. So it's good to still get out there in some regular cadence as well. So if you do those things, regular visits, really solid team, right tech. I think the remote management tends to work really well.

Anything to add to that, Garrett? No, I think you hit it right on the head. You know, I'm a big advocate of self-managing your portfolio, especially if it's your first or second property. There's numerous benefits there. There's tax benefits there to being, you know, spending the most amount of hours on your property. I think one thing to just

uh, kind of highlight as well too about when you talk about team is if you are going out of state, make sure you're using a real estate agent that is short-term rental knowledgeable, like an investor friendly, uh, agent that we have a lot of those at bigger pockets. You can find them at the agent finder, but make sure that they are, have experience in the short-term rental world because nothing's worse than, um,

having somebody that sold, you know, a few residential homes in a neighborhood somewhere. And then you get, then you get paired up with them to help with your short-term rental purchase. And they don't know anything about the nuances that come with, you know, actually having a short-term rental. So ask them, you know, what percentage of deals last year were short-term rentals? Do they own any short-term rentals? Do they have any recommendations for short-term

cleaners and handy people in the area. This will start to give you a little insight into the actual area and really work with somebody that knows the landscapes of short term rentals because they're they are a big real estate investment, but they are just slightly different than most other traditional investments with the different things that could be in place, restrictions and legalities that could follow. I guess we've got one more question, and this one's about a dilemma

about throwing axes at your short-term rental property. So actually a question I've never been asked before, so I'm excited to answer it. But first we're gonna take our last break. And while we're gone, if you haven't yet subscribed to our YouTube channel, you can find us at Real Estate Rookie. We drop not only all of our full podcast episodes, but we also do some dedicated YouTube videos there as well. So again, at Real Estate Rookie, and we'll see you guys right after this break.

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All right, guys, we're back here with our last question. And like I said before the break, this is a question that I've literally, I've been asked a lot of questions about short-term rentals. I've never been asked this specific question. So let's get into it. So this person says, we're getting our first Airbnb ready here in Colorado. We have an axe throwing lane in the backyard that came with the property.

We were wondering if anyone has successfully done something similar in their Airbnb. Our insurance is saying they can't cover it with liability, but what about having a guest sign a waiver? If we could include it as part of the Airbnb, it would definitely make us stand out. So yeah, I definitely agree that having axe throwing at your Airbnb would make you stand out because no one else has it. But I think no one else has it potentially because like,

Just so terrifying to think of having your guest walk around with axes unsupervised at your Airbnb. I'll give my take, Garrett. I'm curious what you think, man. But I would not.

at any of my properties, you know, liability waiver or otherwise, I think allow my guests to have something as potentially dangerous as an ax, um, at the property, right? Like, you know, when you're at the ax throwing places, like there's their staff there, like, Hey, don't cross this line. You know, if you're doing something silly, they can kick you out, whatever it may be, but just untethered access to, uh,

you know, an ax makes me kind of nervous as a host. What's your initial reaction, Garrett? I have a very similar reaction, especially if your insurance, which I'm hoping it's a short-term rental specific insurance, is telling you it's a liability. It's probably something I would not entertain. A waiver, you know, isn't most likely going to save you from

any type of lawsuit that may come from it. And it just, it just seems like a bad idea all around. Like you mentioned, there's, there's no staff on site. You know, even at one of my rentals before we had a lot of land and one of my glamping sites and we, we towed with toyed with the idea of, you know, letting Evan golf cart rentals on site. And our insurance was like, please don't do that. We were like, Oh, maybe we'll get a waiver. We talked to a few other people in the space and, and

it was pretty much a hard no on all ends for us, you know, what we would have to do logistically to have, you know, make sure it's working because you also want to provide the, if you're providing this amenity, it has to be, you know, fully functional. So if something goes wrong, guests are going to blame you. I,

And, you know, and if something goes wrong, you're likely the one to be sued, especially if insurance isn't covered. And I think the smarter route here is to see if there's any axe throwing places within your community or any other type of fun events. You know, I, I have, I have, I have a place with water on it. I don't rent jet skis at all, but I have partnered with a local company to give a discount code to my guests that they can go rent the jet skis, um,

from a whole other place that has liability insurance to cover that. And it's just completely off of my property. So they still get the amenities. I don't have to deal with the headache and the extra cost that would even be associated with trying to get insurance on this. And so it still provides the guest experience that I want. And guests are safe and sound on my property, and I sleep better at night.

Yeah. And, you know, neither Garrett nor myself are attorneys. Right. So I think for everyone that's listening, so go get some some real legal advice. But a liability waiver can't prevent someone from suing you. Like just because they signed the waiver, that's not them saying that I will not sue you. So they could still sue you. They just might lose. But even just the headache of like something like that potentially happening and you still having to pay for a lawyer just to protect yourself.

Even the idea of that, I think, is what kind of turns me off from it. And even if you like, even if even if they do sue, there is still a chance that maybe the judge does rule like, hey, you as the owner, you as the host were negligent in some way. And you didn't do a necessary job of protecting your guests at your property. So, yes, you are on the hook. So, yeah, hard, hard no for me.

When we bought our hotel gear, it's something similar. The previous owners had bike rentals, just like normal bicycles. They rented to all the guests who were staying. And our insurance company said, look, you can keep the bikes, but your premium is going to go up by X. And we're like, yeah, it's not even worth it, right? Let's get rid of the bikes. So yeah, I think insurance companies...

they've probably seen enough claims to know what things to charge a premium for. And there's probably a reason they're saying no to the axes. So if you're looking for ways to stand out,

there are probably other safer amenities or experiences that you can add. Heck, I've even seen like like magnet axe throwing where it's the same idea, but it's like a magnet board and it's not a real axe. Right. So, you know, even if someone got hurt, like, you know, it's definitely safer than than a traditional axe. So.

Yeah. Hard no for me. I'd rather you spend, you know, a few hundred dollars on different outdoor games, cornhole and go the full route. You know, I mean, even in one of my properties, we built a small putting green, you know, like thousand bucks, super simple, you know, insurance has no problem with that. So, you know, like those are, there's, there's a, there's a few things out there that you can really, really think about and, you know,

you know, browse Wayfair and Amazon and all these sites to see, Hey, what are some other outdoor games that I actually could supply that are a lot less on the liability side that my insurance is going to be a little happier. And we already know, uh, premiums are going up at record paces. So we don't, we, yeah, we don't want to, we don't want to add to that at any of mine. So,

I would definitely stay to the safer routes. And you give a great call out of like the putting greens. Like we added mini golf to one of our properties too, a very inexpensive, but for everyone that's listening, like if you just want some good motivation around what you can add,

Airbnb has like different sections, different categories that you can browse. And one of those categories is play just like P L a Y play. And if you just click on that, open up your search, your search nationwide, and you can see just like a lot of cool, like play type things that people have added to their properties. And if your property's in Colorado, who cares if you copy something that someone's doing in,

Brazil, you know, it's like no one's ever going to be shopping Colorado and Brazil at the same time. Right. So you can implement something similar into your own listing. So just just an idea to maybe get some more motivation on what you can add that maybe you won't be as scary. Yeah, I agree. Yeah.

Awesome. Well, Garrett, I appreciate you jumping in and covering for Ashley today, man. As always, it's good we can catch up and talk shop about short-term rentals. Where can folks get in touch with you, man? You can find me on the brand new Bigger Stays YouTube channel that was launched by Bigger Pockets that is specific for short-term rental investing. And you can find me on Instagram at GarrettBrownRE.com.

Well, Ricky's thank you for hanging out with us today. Uh, as always, if you're enjoying the podcast, please do subscribe to our YouTube channel. Uh, if you're listening on Apple podcasts, be sure to leave an honest rating and review. Uh, I think the more folks that know about the Ricky channel, the more folks we can impact and the more folks we can impact, the more folks we can help get on their way to build in financial freedom, which is what we all want. So again, if you guys are enjoying it, subscribe, share it with someone else. Uh,

That's it for today, guys. My name is Tony J. Robinson. Joining me today is Garrett Brown, full owner for Ashley Care. And we'll see you guys next time on an episode of Real Estate Rookie.

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