AirBNB Potential? Jersey Shore

[Joe P.]

I am looking at investing in an oceanfront town on the Jersey Shore for AirBNB potential. I like the property for this use or personal, so I'm not sure how I want to proceed.

Property Type: 2 bedroom, block to the beach, condo w/ association fees (they allow STRs)

Sale Price: 275,000

Loan: 10% down conventional, 3.5% over 30 years

Cash Invest: $61,250 (assuming $27,500 down, plus closing costs, plus 20-30k rehab to spruce up for us or short term rental)

Expeted Income: $3500 per month (obviously summer is busiest, AirDNA thinks 48k annually (4000 per month is expected), trying to be conservative

PITI: $1,735 per month

All Expenses (CAPEX, maintenance, stocked goods, heating, electric, internet, water/sewer, HOA, city fees): $1,265 per month

Cash Flow: ~$500 per month

COCR: 9.8%

Obviously my primary concern is making sure I'm not outrageous on my rental figures, and want to know if I've accurarely covered typical expenses on a shore AirBNB property. I like this place either way, but options/exits are always good.

and finally...I know many folks would say "if you like it and its for your personal use, who cares about the numbers" -- my goal would be to have flexibility and continue scaling. If it's a good STR, I'd want to know that. Thanks for your inputs!!!

[Bruce Woodruff]

Assume for a minute that AirDNA is wrong. They are a computer algorithm. What can you prove that your neighbors get?