Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Short-Term & Vacation Rental Discussions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 2 years ago on . Most recent reply

User Stats

69
Posts
54
Votes
Matt Payne
  • Real Estate Agent
  • Asheville NC
54
Votes |
69
Posts

STR Projection Question

Matt Payne
  • Real Estate Agent
  • Asheville NC
Posted

Here is a scenario and questioning how I may project nightly rate and occupancy:

I'm going to round up numbers to make it easy.

House for sale that is 3/2 and is essentially identical to a local (1 mile away) high performing STR, same rooms, baths and beds and yard etc.

The high performing STR has over 200 reviews and is 4.85 in AIRBNB.

It is charging an average of $200 a night with dynamic pricing and looks like it is booked at about 80% occupancy.

Assuming I buy the new place, fix it up and outfit it the same as the local STR, what % could I expect just starting out relative to an established STR in the same market (neighborhood)?

I understand perhaps charging less to drive traffic, especially initially and I of course would not expect same occupancy levels.

But what % of nightly rev and occupancy should I plug into the pro-forma to start the process?

Or broad question is how does the new STR home flow in vs the existing proven one in the same locale?

And just assume the market can handle another one.

Thanks-

Most Popular Reply

User Stats

1,261
Posts
982
Votes
Leslie Anne Morris
  • Real Estate Agent
  • Smoky Mountains, TN
982
Votes |
1,261
Posts
Leslie Anne Morris
  • Real Estate Agent
  • Smoky Mountains, TN
Replied

Depending where you are looking you could get a property manager to assist with projections, but you can also use AirDNA. There is also a new tool called STR Insights. If you are just listing on Airbnb it usually takes some time to climb rate wise, especially considering you already know there are well established STR near you.

Loading replies...