How much to offer for STR condo?

[Gabriella Farkas]

Hi, I am new to the forum and looking to acquire my first STR investment for a 845sq ft resort condo with direct access to the ocean (no direct views from the condo). Coming off of the recent market high and significant fluctuations in the recent comparable sales I am wondering what a reasonable purchase price would be. I plugged in 250K with 50K on upgrades and improvements (badly needed). Does this calculation look sound? I would appreciate someone experienced giving their opinions. Would you go for it??

[Leslie Anne Morris]

I don't usually calculate a cap rate on the STR asset class instead I calculate cash on cash after calculating NOI. In this environment my buyers are targeting 20% typically.