All Forum Posts by: Joe Ciccarelli

Hey @Joe Ciccarelli, looks good to me. I wouldn't use AirDNA myself but overall it's fine. You should get close to where you need to be.

not sure if you do comp selection on Rabbu or not, but i've found that really helps refine my numbers

So for that I would use AirDNA data to figure out the average length of stay and occupancy rate for the market, use those numbers to get a rough estimate of how many stays per year, multiply that by the typical cleaning fee for your market, and then you have a yearly fee number to add to your total revenue from AirBnB so it is comparable to AirDNA's number. Or you could subtract that number from AirDNA's total revenue number, either way works

 Sorry yea wasn't totally clear on that, I meant AirBnB listings (before fees), so similar to what you are doing looking at weekday/week end prices for each season.

I think you've got a great system here, most people wouldn't do half of this to analyze. Personally I just used AirDNA and looking at listing prices and that worked out well for me. I haven't used Rabbu or Awning so cant comment on those.

AirDNA was relatively accurate for me, but definitely helps to compile a list of specific listing's revenue on AirDNA because sometimes the average can be misleading. I actually found AirDNA to be on the conservative side in my case, but that can differ depending on market and if you have high value ammenities.

The data is legit, but it's using past data, and it includes cleaning fees.  I prefer using awning.com which does NOT include cleaning fees.

Either way, if I was buying a property, I would want a robust under-writing process of:

1) on-line tools (airdna, awning, etc.)

2) Local realtor/PM data

3) enemy method

In this market, I might then layer on a trend, seeing as macro data would indicate that STR's hit a a peak Rev PAN in 2022. So I might apply a -5% to the above numbers

 Luke and Avery Carl have written extensively about this, but here are my thoughts:

My goal is to find properties that are underperforming their peers by a significant amount.  Properties in the Smokies are generally sold at a multiple of 9 to 11 times annual rents.  I don't want to find the best performer in an area; I want to find the worst, buy it at a discount, and then get to work on making it perform at average or better for the peer group.

I do the following in my analysis of a subject property:

1.  Check the VRBO rates and calendars for similar properties nearby.  

2.  Ascertain if the property has underperformed due to appearance:  Is it out of date?  Does it need a fresh coat of paint?  New furnishings?  

3.  Is the property playing to its strengths or hiding from them?  

3.  Has the property underperformed due to lack of amenities?  

Back in 2010, I purchased a cabin that was over 200 years old on the Roaring Fork River in Gatlinburg.  It was a complete dump, with furnishings that looked like they came from the 1970s (and probably did).  Nasty carpet, cheap fixtures, mini blinds.  

When I bought it, I spent about $30,000 doing a mini-renovation.  My goal was to play up to the fact that it was an old cabin rather than hiding it. Took out all of the carpet, restored all of the old hardwood floors underneath, bought nice leather furnishings and blended them with functional antiques, placed a beautiful antique persian rug in the living room, replaced all lighting with early 1900s look.  

After the mini-renovation, the annual rental income tripled.  

I am currently completing a $50,000 renovation on a cabin in Cosby that I purchased in October.  I believe my rental income will increase by at least 50 percent when I am done.