STR Analysis in Nashville IN

[Keagan Scott]

Hey everyone!  Just looking to help out my fellow investors here in Indiana and post a deal I like. I found one in Nashville, IN that I think makes a lot of sense and would love to hear feedback on the analysis. It's currently listed near $400k. Revenue projections:

Rabbu - $85k (49% occupancy and $522 ADR)

Airdna - $118k (57% occupancy and $570 ADR)

Airbtics - $101k (52% occupancy and $520 ADR)

If we assume revenue of $100k. Length of stay is around 2.6 days. That's 73 turnovers and at $200 per cleaning, we're at $14,600 for the year. $400 a month for utilities, $500 for misc expenses like toiletries, maintenance/repairs, landscaping etc. $150 a month for insurance (this might be low?). There's other expenses like taxes, prop mgmt software etc.

Total operating expenses for the year come to $32k. Mortgage is $25k for year assuming 20% down at 7% (with a purchase price of $375k). Annual cash flow is around $40k.

Total initial investment is around $120k. Down payment of $75k and improvements/furniture of around $40k.

Would love to hear your guys thoughts on this!

[Luka Milicevic]

Quote from @John Underwood:

I would use the lower estimate if you want to guess, but why guess?

Check the competition manually on Vrbo and Airbnb to get the most accurate numbers possible.

Google the enemy method if you don't know how to do it.

Here's the link. I saved someone a 3 second google search 

The enemy method