How to figure out what a STR property is worth??

[Shaun Troyer]

I received a lead on a 6 unit STR property that the owner wants to sell. It has been established for several yrs now and seems like a great performing property but lacking in a few areas like some technology and modernizing units. I will be walking the property with the owner on Monday and would like to know how everyone else calculates what a STR is worth. I will be getting the performance history for the past few yrs on Monday. It is located in Ohio In a popular tourist area.

ps. I currently own 1 STR so I'm not a total newbie. But this is definitely alot bigger opportunitity for me.

[Zach Edelman]

Value based on sales comps, not based on what the income (STR) that the value generates is. This is how residential assets are securitized in the MBS market, and how they are lent on as well. As a result, you may find yourself with some lending difficulty if a seller is charging too hefty of a premium based on the STR income of the property they're selling.