In many situations, the revenue earned from the other rooms or units will NOT completely cover your mortgage payment and expenses, and that's ok.

It seems there are a number of sources to estimate revenue.

Joe V is still correct, as others as well, that these numbers added to your mortgage expenses and property management fees (typically 8-10%) only help you as an initial starting point and remove a lot of revenue/gross income from the property equation.

it's not just the rental itself you're buying, it's also the space and knowing what you can add to amplify the revenue. it can make a marginal deal look solid if you know what to do with it. 

In regards to my general question, I'm getting the sense that folks here do *not* believe there's a systematic gap (at least in markets that they're familiar with) between housing prices and STR revenues. 

As inflation goes up each year what they resale for in costs goes higher in price so even with the same sales volume of customers their gross revenue is likely to keep increasing.   

Hey @Karla Simmons,I looked into it myself, however I didn't follow through on it based solely on the revenue factor.

Versus we are 15% and cannot manage in the grove. need way more data and dialogue to make a recommendation and even then, I would only advise u by running a revenue projection and THEN you could build out a proforma from there.  

House: 5 Suites and 1 more ready to add a bathroom.Occupancy: 90% plusMonthly Revenue: $4000+Net After Expenses (Assuming $450k note): $1000This sort of strategy can work with househacking young people, retirees or actively managing SFH investors.

Home has increased in gross revenue yoy from $25k to $41k.