AirDNA shows 82% average occupancy for listings in this category this year, average per night ~$575 and most are not as luxurious as this particular home and I suspect that with some excellent marketing we could do $650 or more (but would want to be conservative in our initial calculations).

Location and cost were the initial items that appealed to me.

Some things to note are that we are investing as a 3 person group, we are hoping to get our first property(our offer has been accepted and is now in the due diligence portion), all 3 of us are on the loan and will be on the deed for our initial property, and we plan on pursing an attorney for future properties, exit strategies and whatever else we have to cover.

I had commitments for the entire amount within 27 hours of my initial email, and eventually had a waitlist greater than 100%.

If they both signed the lease as you initially indicated then for one person to get the deposit OR to split it evenly you need a request from both of them to do that. 

@Ryan Genson I actually did miss where you initially said you're looking to do STR's.

In your initial deal analysis, did you plan on renting that room upstairs, or did that come about after? 

Hi Sara,A couple things that jump out to me initially after looking at your calc report are you don't have a couple variable expenses factored in that should be - 'Vacancy' and 'property management' expenses.

@Melissa S Vrobel I was referring to what you had initially said, "taxes and insurance being raised each year", and referencing the fact that some renters may choose to leave or break their lease when asked for higher rent.

@Jack Calhoun There are a few "rules of thumb" but ultimately, you'll need to do a full underwriting on a property before you actually put in an offer.I would suggest finding a good property analyzer spreadsheet and getting enough practice that you can quickly do an initial analysis within 30 mins or so.Some things to look for in a property analyzer: Allow for separate entry and exit cap-rateMin 5 year forecastinput for rent/expense growth on each yearincludes rehab and capex costsincludes debt service and financing costsincludes acquisition and disposition costsProvided IRR for planned exitHonestly, there's a ton more bells and whistles you could add, but I would consider that the baseline if you're talking about deals that size.Hope that helps!