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 42s5.1K viewsScore 75
Pricing & Profitability
beginner
Profitability
Market Research
Revenue Management
Pricing Strategy
Tax Strategy
M

Summary

AI-generated

This video provides a quick method to determine if a short-term rental property is a good deal by calculating potential cash flow, depreciation, tax savings, and cash-on-cash return. The video outlines the steps to calculate these metrics, advising viewers to further analyze properties with positive cash flow and a return of at least 25%.

Key insights

  • To determine the minimum annual revenue target, divide the purchase price by 6.5.

Mistakes to avoid

  • Don't make an offer without further underwriting if the cash flow is negative or the year one cash on cash return is less than 25%.

Tools & resources

  • Michael Chang's STR Litmus Test Guideguide

    Used to quickly filter properties before investing significant time in detailed analysis.

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