How To Run The Numbers On A Potential STR

[Lucas Schlund]

Hello all! I have tried finding post regarding this question but couldn't really find what I'm looking for. I'm new to STR's and was wondering, from a big picture view : How do you run the numbers on a potential STR? Any help is appreciated as I'm trying to get a better grasp on evaluating short term rentals including the steps you go about to finding your target markets. Also any book recommendations on STR's are appreciated.

[Garrett Brown]

Hey Lucas! You should definitely check out Avery Carl's BiggerPockets book "Short-Term Rental, Long-Term Wealth" https://store.biggerpockets.com/products/short-term-rental-l...
There is a lot of amazing insight into everything to think of while operating an STR. When starting out, I think you should at least be able to get to your property several times within the first couple of years to en reasonable amousure everything is set up and functioning properly. No one will care about your property more than you, but building a good team will get close.

For analysis, you need to identify a market that interests you using tools like AirDNA, Mashvisor, Pricelabs, etc. 

After you get some basic information from there, you should use the enemy method to identify how well competitors do in the area. 

If you plan on purchasing, talk with an investor-friendly lender and STR-centric real estate agent to get more information to help you analyze the deal. Alot of details go into pricing out income and expenses so using the BiggerPockets Airbnb Calculator could help see what expected expenses you can expect.