How to tell if a short term rental is a good deal in less than 30 seconds 1️⃣ Follow me 2️⃣

Michael ChangDec 5, 20250m 42s3.8K viewsScore 75
Pricing & Profitability
intermediate
Profitability
Revenue Management
Market Research
ADR
Expenses
M

Summary

AI-generated

Michael Chang provides a quick method for assessing the potential of a short-term rental property as a good deal. It uses formulas to calculate potential cash flow, depreciation, and year-one cash-on-cash return, allowing hosts to quickly decide whether to further investigate a property.

Key insights

  • To quickly assess an STR deal, compare the minimum annual revenue target with the average revenue of the top 25% of competitors; a positive difference indicates potential cash flow.

Tools & resources

  • AirDNAtool

    A tool used for analyzing market data and comparable properties for short-term rentals.

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