2 most important variables when underwriting a deal

Michael ChangSep 26, 20220m 19s715 viewsScore 70
Pricing & Profitability
intermediate
underwriting
deal analysis
ADR
occupancy rate
revenue forecasting
M

Summary

AI-generated

This video explains the two most critical variables for underwriting a short-term rental deal: Average Daily Rate (ADR) and Occupancy Rate. Understanding how these two components contribute to total revenue will help you become a more successful investor.

Key insights

  • Decomposing total revenue into Average Daily Rate (ADR) and Occupancy Rate provides a clearer picture of a deal's potential and leads to better investment decisions.

Tools & resources

  • Wealthy STR System Guidecourse

    Michael Chang offers a complete guide to his system for underwriting deals, available through his website.

Frequently Asked Questions

Curated by Learn STR by GoStudioM · Summary & key insights generated by AI · Reviewed by editorial