Analyzing Potential Earning for Customers

[Nick Huffman]

Hey Lords and Ladies,

As I embark on my real estate journey wearing both the investor and Realtor hats, it's becoming clear - the STR scene is going to be one of my core niches. My personal trusty cash flow analyzer has served me well for my own deals, but it's upgrade time for something with more oomph. BiggerPockets has its arsenal of tools, yet the draw of Airdna's precise data seems more of what my clients might need. There's also the free advice from Rabbu that's great. Any advice to guide me on this thrilling decision-making ride?

[Theresa Holl]

Hahaha... love your writing style. AirDNA is a real standard for this stuff, but don't forget you will compete against hotels too. Hotstats.com is my favorite hotel intelligence site. Get familiar with the metrics like REVPAR, TREVPAR and most importantly GOPPAR and NOI and you're off to the races.

[Nick Huffman]

Quote from @Theresa Holl:

Hahaha... love your writing style. AirDNA is a real standard for this stuff, but don't forget you will compete against hotels too. Hotstats.com is my favorite hotel intelligence site. Get familiar with the metrics like REVPAR, TREVPAR and most importantly GOPPAR and NOI and you're off to the races.

HAHA I appreciate that you appreciate when I'm trying to be funny. I'm familiar with RevPar and NOI but not the others. Looks like this young lad will need to be diving into more research!

[Theresa Holl]

TREVPAR is total revenue per available room, it's more comprehensive as far as operating expenses. 

GOPPAR is gross operating profit per available room.   Better to keep an eye on profits than to stop at top line revenue. 

[Sarah Kensinger]

Some of the sites mentioned are not used by STR operators at all. We don't run numbers with hotels since we're a completely different animal! Most would just tap into airdna and some are now messing around with BnBcalc. For a very through instruction on running numbers for a STR, Tony Robinson created this video and analyzer for newbies.

Tony Robinson Analyzer

[Michael Baum]

Hey @Nick Huffman, so I see AirDNA as a tool to be used as part of an overall research strategy.

It will really depend on the area. In Orlando, there will be lots of comps to use as data to compare so it will tend to be more accurate.

You will also want to hit up both AirBNB and VRBO to see what other units are bringing in and to the table. Amenities, nightly rates and occupancy. Use all those in addition to location, distance to activities etc to come up with your plan.

Frankly, your cash flow analyzer should work just fine if it works for your own personal deals. I don't see why it wouldn't. Maybe add some refinements to show clients. "Professionalize" them to some degree. Not overly done but it is different when you are running data for yourself vs showing it off.

I will say that Orlando is a tough row to hoe right now. Hopefully things will improve when the new Universal Studios park opens up.

[Andrew Steffens]

Agreed with @Michael Baum.  I am in Tampa and use AirDNA as a starting point and then back it up with market data from Airbnb/VRBO directly with my clients.  I also agree with him that Orlando is tough.  We manage a few units there and it is really tough tbh.  Best of luck!

[Chris Plummer]

I agree with Andrew - I look first to Rabbu then customize then back up with Airbnb and VRBO actual data.  You can learn alot in 30 minutes with proper searching.

[Matt Mertz]

PriceLabs just rolled out their Revenue Estimator Pro tool.  Haven't used it yet but worth a look if you're already using PriceLabs.

[Theresa Holl]

Quote from @Sarah Kensinger:

Some of the sites mentioned are not used by STR operators at all. We don't run numbers with hotels since we're a completely different animal! Most would just tap into airdna and some are now messing around with BnBcalc. For a very through instruction on running numbers for a STR, Tony Robinson created this video and analyzer for newbies.

Tony Robinson Analyzer

Many STR investors might not consider hotels to be their direct competition, or think of KPIs the same, but hotels are definitely competition for STRs. I often take massive road trips and will stay at a mix of STRs and hotels or quirky lodges depending on what looks fun or convenient. It doesn't hurt to think like your competition now and then. Also, from a marketing and revenue management position, hotels are better than many STR hosts at maximizing top line gross revenue with events and other specialized clientele. We teach our clients in the STR game to use those strategies and the results are impressive.

[Jeremy Werden]

Hey I am an investor with 25 listings and am also a Co-Founder of BNBCalc.

Right now (in 2024) this game is all about providing more and better amenities than the competition. So I study to find which properties are doing irrational amounts of revenue in the markets I am looking at and elsewhere to figure out what type of experience to create. 

Right now I am liking pickle-ball courts as it is the fastest growing sport in the US.

It is very, very important to understand all the revenue and expense variables and then to have peers cross-check your analysis. BNBCalc is a full revenue and expense software that is very easily share-able. The revenue and expense projections are starting points. I recommend looking at all the data sources and the listing platforms themselves to get the best feel for revenue potential.

Also, reach out to local owners for the most accurate expense information. Plug it all into BNBCalc and share it so others can give you feedback- look at the tax savings via the "short-term loophole" at the bottom and learn how that functions as well as it can be a huge aspect of your investment.

[Jeremy Jareckyj]

Pricelabs market analyzers isnt too bad!