How much of a Covid discount would you need to purchase now?

[Dan L.]

I invest in a county that has a limited number of permitted vacation rentals - these properties trade at a premium and only make sense to purchase if you are going to run it full-time as a vacation rental so you aren't competing against "regular" buyers who may use it as a second home or only rent part-time.

I had a broker bring me an off-market deal this week and I struggled with what to offer given all the uncertainty regarding Covid. I ran the numbers assuming pre-Covid performance and came up with what I would have offered on the property in February, but obviously some discount to that price is needed now.

If you are making an offer on a vacation/STR rental today, how much lower would your offer price be than on the exact same property in a world where Covid didn't exist?

Dan