Weekly Deal Deep Dive Using BiggerPockets STR Calculator

[Garrett Brown]

Welcome to a new section where we explore weekly deals in vacation markets around the U.S. using the BiggerPockets Short-Term Rental Calculator.

Gulf Shores, Alabama, has been one of the hottest markets for STR investors over the last few years. My grandmother lived there for many years when I was growing up (I always think of the massive shark head store there), but I don't think even she would have predicted how much it would rise.

I like Gulf Shores because I am looking for high-appreciation markets that can still generate a minimum 15% cash-on-cash return (CoC).

I scrolled through the Deal Finder to review some deals with my set parameters:

4+ bedrooms ✅

3+ bathrooms ✅

No condos ✅

View (sort of) ✅

My price range ✅

This listing sparks my interest. Although it may not be exactly waterfront, the price point ($649,000) might make it a solid deal, being that close to the beach. AirDNA (I always check multiple places) says this property could make a $500 average daily rate (ADR), with 65% occupancy as a basis.

I pulled up the new BiggerPockets STR calculator spreadsheet and realized this might be a winner.

After entering all of my research numbers, it shows a potential CoC of 12.49%, a monthly profit of $14,385, and expenses of $12,442 (even with a 15% management fee). We could increase the marketing budget and reach a higher occupancy rate but I like sticking to basic numbers when first analyzing.

These are true STR expenses listed, not the typical "oh, you just have to pay for your mortgage and utilities" logic some "gurus" teach.

If I reduce the purchase price to $600,000, the CoC jumps to 15.2%. Now, whether we can actually get that offer accepted is another story. I might be writing next week's BiggerStays from a beach. 😎

Everything is included for advanced financial metrics as well, such as IRR, Cap Rates, 5-Year Estimated Values, and more!

It is currently an Excel spreadsheet (which works best for it) but can turn into Google Sheets or Apple's Numbers also (although the formatting may be thrown off with those options for the graphs). Let us know your thoughts and what could make a better calculator! This is a Pro member feature, so if you are not signed up, check out the free trial of all the amazing resources BiggerPockets offers. 

Download the BiggerPockets STR Calculator here.