Underwriting STR vacation rentals? Best software or excel template you can share?

[Selina Giarla]

I have been in long term rentals for about 15 years. I am looking into purchasing a STR/vacation property as another rental income business line to diversify and need to understand the underwriting. I am looking for suggestions on either underwriting software and/or excel templates for this type of underwriting. I don't know the average occupancy, ADR, etc. for this region so a software that is pretty good at predicting that would be helpful.

Also, for obtaining debt, do lenders price this as more risky? How are the loan terms typically written for this purchase and how have you fared in terms of the rate/length of loan, etc.?

[John Underwood]

Quote from @Selina Giarla:

I have been in long term rentals for about 15 years. I am looking into purchasing a STR/vacation property as another rental income business line to diversify and need to understand the underwriting. I am looking for suggestions on either underwriting software and/or excel templates for this type of underwriting. I don't know the average occupancy, ADR, etc. for this region so a software that is pretty good at predicting that would be helpful.

Also, for obtaining debt, do lenders price this as more risky? How are the loan terms typically written for this purchase and how have you fared in terms of the rate/length of loan, etc.?

 Software is only so good at predicting these things. You are better off manually looking at the potential competition on VRBO and Airbnb to get your best numbers.

STR spreadsheets have already been shared on here and you can search and find them.