STR or Long Term Rental

[Michael Lynch]

Hi,

I am having a very hard time understanding how to do a short term rental evaluation on my property. .... AirDNA says that my market has a 56% vacancy rate. We are located 2 miles from Holden Beach, NC. It is a 3 bed 2 bath home with fenced in large playground. Is there some sort of formula to try and figure this out?

Long term rental rates show this home at getting around $1900.00 per month. It looks like it will be a close tie for Short Term or Long Term, but I want to know for sure. How do you all figure it out?

Thanks!

[Daniel Bourdeau]

+1 to detailed comp analysis. Its about finding the competitors that have the closest match to 1.location 2. size 3. quality 4. amenities. The tough part is not all operators are made equal, and one operator could make significantly more with the same property as another operator. But by averaging the closest comps, youll get a good idea. From there, building a monthly forecast relative to the seasonality of the area can help to understand when you expect to cashflow and when you might just break even or lose money