Estimating occupancy & ADR

[Emily Simmons]

I’m very much still in the learning phase, so if this is a dumb question, please forgive me.  For what it’s worth, my goal is cashflow, but I won’t be able to buy super nice properties to begin with.

When I’m looking at a market, it’s hard to understand how the outliers ended up the outliers.  Or whether a given property could be charging more and just isn’t.  That makes it tough to figure out if a property is a good deal or not.  E.g., if a property has 95% occupancy on Airbnb, does that mean it’s possible for me to eventually hit that, too?  If the majority of properties have occupancy in the 70s, can I expect to start out around there?  If occupancy is 16%, how can I figure out why? 

 If some are charging $98 and some $395 for the same floor plan, where would I set my price?  Most look about the same as far as updates and decor go. Nothing looks seriously outdated or rundown.

I think demystifying the analysis process is going to be a huge hurdle for me.  I eventually end up overwhelmed with numbers and discouraged.

I’m currently reading The Small and Mighty Real Estate Investor and Short-Term Rental, Long-Term Wealth, so maybe I just haven’t hit those chapters yet.

Thanks for any advice!