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?