All Forum Posts by: Vincent Pecora

You can just start looking at each and every listing that is similar to what you are looking at to see what their nightly rate, occupancy and amenities are. Maybe run the Awning.com free estimator tool as well and use them all as a baseline.

You don't say what city so it will all depend on how many rentals there are in the area. The more there are, the better/more accurate the data will be. If you have fewer rentals then it will pull STRs that are not quite the same which will skew the results.

Thanks, . Ha - yep, mining specific comps was the plan, but appreciate the awning.com tool - hadn't heard of that one yet. How does it compare to the Bigger Pockets AirBnB Calculator in terms of accuracy? Any rule of thumb about the sweet spot for the # of rentals in a market that is high enough to establish demand but low enough to avoid saturation?

I don't think there is a sweet spot. A popular place that folks visit will have plenty of STRs. There are things that you can look at. Is it a vacation spot like the beach, lake or mountains? Is there a large university there for events, graduations etc?

Those sorts of things bring folks and they need a place to stay. If you look at Pigeon Forge/Gatlinburg area, you could think it is saturated, but it gets a ton of visitors. If you have a decent STR you can do OK there.

If it is in the middle of nowhere with nothing going on, you won't find a single STR.

OK, makes sense. Thanks for the feedback, @Michael Baum. Appreciate it.

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Quote from @Sarah Kensinger:

Quote from @Vincent Pecora:

Makes sense, Sarah. Based on your experience, how much do you think, on average, those cleaning fees inflate the ADR? 5%, 10% maybe? Just wondering what type of adjustment I should use in my analysis to account for/normalize the cleaning fees. Thanks!

When I underwrite a property, I include the cleaning fee as an expense. After checking similar listings in the area, I would place my cleaning fee competitively and then multiply it times 3 or 4 (turnovers in a month). That seems to be a good adjustment to the data Airdna provides.

@Sarah Kensinger Good idea. Thanks so much!

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Quote from @Michael Baum:

Hey @Vincent Pecora, you are seeing the weakness of an algorithm left to it's own devices.

Thanks, @Michael Baum. Ha - yep, mining specific comps was the plan, but appreciate the awning.com tool - hadn't heard of that one yet. How does it compare to the Bigger Pockets AirBnB Calculator in terms of accuracy? Any rule of thumb about the sweet spot for the # of rentals in a market that is high enough to establish demand but low enough to avoid saturation?

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Quote from @Ryan Moyer:

Quote from @Vincent Pecora:

Unfortunately no easy answer here as this is going to be highly dependent on average length of stay and seasonality of the market.

For instance in a beach market that does primarily week-long stays in the summer to generate its revenue and is mostly empty other than that, there may only be 12-15 cleans all year and hence it's going to be a very small percentage.

Whereas in a year-round market of a smaller home where you get lots of shorter bookings to fill out the calendar, it could represent a much larger percentage.

One thing you can do is look at ADR and Occupancy percentage. That should come out lower than total revenue since it is not factoring in cleaning fees, though I believe you get much more generalized data on ADR and can't drill down as much.

@Ryan Moyer OK, got it. Market here is in Arizona, so seasonal (winter-heavy) but also technically metro/year-round with smaller, clustered visits. On the ADR/Occupancy analysis, are you suggesting to multiply ADR x occupancy percentage x 365 and see how that # stacks up to actual annual revenue for specific properties? Thanks!

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Quote from @Jesse Turner:

Quote from @Vincent Pecora:

It really depends on the property. The number of beds, the total square footage, or anything else that could impact the hours or complexity of a cleaning crew's job. I'd spot-check a few of the comps you're seeing by peeking at their cleaning fees on whatever platform they're listed.

Thanks, @Jesse Turner. Good idea, will do.

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Hi @Andrew Steffens: I enrolled in a subscription for just the city I'm looking at ($99/mo). And thanks for walking me through your approach!

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Hi Everyone:

Newbie who just enrolled in AirDNA to analyze STRs and had some questions for those who are familiar with the tool. I selected my target market based on some macro-level, historical averages for revenue, occupancy, and ADR. The ADR figure looks pretty great, even when factoring in occupancy, but when I did a quick AirBnB search of properties in that market to "sanity-check" the data, I noticed that the nightly rates for the properties that were in line with the ADR that I pulled were a lot nicer than the ones that I'm targeting to buy. This suggested to me that the ADR data I pulled may have been disproportionately inflated/driven up/skewed by the "mansion listings." I'd like to independently validate the ADR that I pulled through AirDNA. Is that possible? If so, does anyone have a good methodology that would work? My thought was to run a filter search in AirDNA using property values/features (e.g., # of BR, pool, etc.) and individually check revenue for the homes that had values/features similar to my buy box. Any better methods out there? Thanks!

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Sorry about that: goals are long-term buy/hold, multifamily 5-7 units. Column #3 was actually Old Town Scottsdale, but South Scottsdale makes sense. Are your properties close to campus?

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Scottsdale, Arizona

Hi Everyone:

Just starting out and looking to pin down a specific market within the Greater Phoenix metro area. Below are some data I gathered on each of these neighborhoods/locales, and I was hoping some of the experts could weigh in. Which profile do you think looks best? Thanks!

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Scottsdale, Arizona

All Forum Posts by: Vincent Pecora

Vincent Pecora has started 2 posts and replied 10 times.

Post: AirDNA ADR Data

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Post: Question - Market Selection

Post: Question - Market Selection