I did the math on this but the bottomline is that, the 10.5% IRR that the LPs are supposed to get...when the market goes down and say, the projections are off by 20%, the LPs of a typical syndicator's deal will get 0% real return and their money is stuck in the deal.

@Joseph Ayala - cap rate is math using rents, expenses, etc. 

(Other than family and friends that don't understand math).

(there's a note about 2% vacancy, also not reasonable, but even that 2% doesn't appear in the math)I'd also consider holding costs while the property is under construction, account for cost overruns, etc.As for the 6 unit, is that also for STR?  

It is nice because you don't have to worry about making math mistakes.

By my math you're both wrong I did 27/ 31 and multiplied by the rent and got $2,612.90 you charge rent by the month not by the day and prorate as a percentage of the month.

Hi Julie - I think one of the main reasons is the price points, guesty was taking a percentage of our earnings along with fees, which was pretty frustrating when we did the math. 

I don't know the math, but I feel like the 16.5% savings (33k on a 200k down payment) would equate to many thousands more in interest during the loan term.Let me know what you think.

It would probably be better explained in a google search than the text based math I'd have to use here.

It appears short term rentals sell for a slight premium and would only make sense if the math did as well.