Selling Home for STR - Is There a Ratio of Projected Income to Sales Price?

[Bret Ceren]

Hi, BiggerPockets Community! Considering selling a home for short-term rental (STR). The HOA doesn't prevent it, so that's already cleared. There are a couple in the direct neighborhood I can find on various sites. Rabbu projects average annual revenue to be $47k. It is a great home and wonderful location, perfect for this investment model. Is there a general rule of thumb for translating that revenue into a sales price? I know what I would do for my market if it were a long-term rental in valuation, I don't know how investor buyers do it for STR. If there's a general/marginal rule of thumb that is used that I can do to start, that would be helpful. Thanks!

[John Underwood]

This house is only worth what comparable sales say it is worth.

This is how it will be appraised. Potential or actual STR revenue has no bearing on what it's worth.