STR Analysis in Nashville IN

[Keagan Scott]

Hey everyone! I'm a realtor in the Indy area and looking for investors to work with in the STR space. I'm a host myself and currently building 10 cabins on the river in northern Indiana. I look at deals every day and going to start posting some of my favorites that I'm unable to buy at the moment. I found one in Nashville, IN that I think makes a lot of sense and would love to hear feedback on the analysis. It's currently listed near $400k. Revenue projections:

Rabbu - $85k (49% occupancy and $522 ADR)

Airdna - $118k (57% occupancy and $570 ADR)

Airbtics - $101k (52% occupancy and $520 ADR)

If we assume revenue of $100k. Length of stay is around 2.6 days. That's 73 turnovers and at $200 per cleaning, we're at $14,600 for the year. $400 a month for utilities, $500 for misc expenses like toiletries, maintenance/repairs, landscaping etc. $150 a month for insurance (this might be low?). There's other expenses like taxes, prop mgmt software etc.

Total operating expenses for the year come to $32k. Mortgage is $25k for year assuming 20% down at 7% (with a purchase price of $375k). Annual cash flow is around $40k.

Total initial investment is around $120k. Down payment of $75k and improvements/furniture of around $40k.

Cash on cash return 35% and cap rate around 18%. Not too bad! Let me know if you're interested in more or would love to hear your guys thoughts on this?