Feedback on my analysis approach + 2 questions

[Joe Ciccarelli]

Here is my process for analyzing an STR property:

1. Use the average ADR & Occupancy on Rabbu (FREE)

2. Use the ADR & Occupancy on Awning (FREE)

3. Find comps on AirBnB and get their total before taxes (inc. fees & cleaning) rate for 1 week and 1 weekend in Fall, Winter, Spring, and Summer (FREE)

4. {If really interested} Use the ADR & Occupancy on AirDNA (PAID)

5. Combine/Average all of these to land on an ADR and Occupancy rate that seem to make sense for analysis.

2 questions on this method:

1. Any general feedback? What am I missing and/or could do better?

2. Rabbu & Awning (I think) don't include fees (AirBnB, cleaning) but AirDNA does which makes it hard to compare them.  How have others handled this?

[Michael Baum]

Hey @Mandy Groom. I don't use the online tools much. They are as fine tuned as an algorithm can get.

They biggest issue is that they pull what they can from available listings. The more listings the more data and the more accurate the results.

So if you are looking in the Pigeon Forge area, you will get better, more accurate results. If you are looking in Bumblenard, maybe not so much.

I use the enemy method pretty much exclusively. I can see the listings directly. What the pics look like, the amenities and what they are charging. I can see how things are progressing with occupancy for the year.

Some areas will simply do well due to the area. A beach front property, a lake front, maybe a mountain retreat. If they are all setup well with plenty of style and amenities it will do well. Mediocre places don't.

If you stick with a vacation area that gets a lot of visitors, you can succeed. It will come down to purchase price and expenses of course.

This is a tough time. Interest rates are high and everything I have heard and read (and I really watch) they will continue to go up for the forseable future.

Just keep on the hunt and save every dime you can so you can jump if something pops up.