Short term rental in Sedona

[Mike S.]

Hello,

I would like to start STR in Sedona, AZ. I found a nice house around 800k. With 20% down and interest of 7.12 yearly mortgage is around 56k. For that house Rentalizer estimates 65k income and 22k costs which makes 43k net profit. My understanding is that Rentalizer overestimates both income and costs. I don't mind spending 10-15 k out of pocket in the first couple of years because of high appreciation in the area. What concerns me is that net profit turns much lower than I expect and I have to pay way more out of pocket for so many years. What should I do?

[Chad McMahan]

Quote from @Mike S.:

Hello,

I would like to start STR in Sedona, AZ. I found a nice house around 800k. With 20% down and interest of 7.12 yearly mortgage is around 56k. For that house Rentalizer estimates 65k income and 22k costs which makes 43k net profit. My understanding is that Rentalizer overestimates both income and costs. I don't mind spending 10-15 k out of pocket in the first couple of years because of high appreciation in the area. What concerns me is that net profit turns much lower than I expect and I have to pay way more out of pocket for so many years. What should I do?

Hi Moein. Based on those Sedona STR income numbers for a $800k home, either the revenue numbers are wrong- and way low, or the property is not a good one as a STR. I'd be happy to discuss it. Reach out any time- I'm literally the STR investment expert in the area.

My clients are getting approximately $140k-150k gross annual revenue per $1M invested. For a $800k home in Sedona that equates to approximately $112k-$120k gross annual revenue.