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Updated almost 4 years ago on . Most recent reply

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Blaine Moore
  • Rental Property Investor
  • Mesa, AZ
11
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44
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How to properly value a performing short-term rental

Blaine Moore
  • Rental Property Investor
  • Mesa, AZ
Posted

I'm under contract for an Airbnb duplex in Dayton, OH. The agreed upon purchase price factored in the revenue generated from the property, so the purchase price is probably around 30k more than the appraised value of the property itself. 

Does anyone know what type of lender would look at more of the revenue generated as opposed to the actual value of the property?

Or, is there any other option I can look into other than personal loans etc?

  • Blaine Moore
  • Most Popular Reply

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    John Underwood
    #1 Short-Term & Vacation Rental Discussions Contributor
    • Investor
    • Greer, SC
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    John Underwood
    #1 Short-Term & Vacation Rental Discussions Contributor
    • Investor
    • Greer, SC
    Replied

    Sales price of a residential property is based upon comparable sales of other similar residential property. I don't think I would pay more that a property is worth based on appraisal. I generally only buy properties below ARV.

    To get any kind of credit for rental income you will need a couple of years of income and then they may only take 70% or so of that income. You won't be able to use this towards purchasing a STR.

  • John Underwood
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