Southern California Vacation Rental

[Trevor Lohman]

Hi everyone!

I'm thinking of purchasing a vacation rental in a Southern California city that has several wineries. To me it seems that there is further need for lodging in this area. I'm just wondering if there are any guidelines/formulas for VR's similar to the 2% rule for sfr's. For the quality of the area, and the fact that it's in Southern California, prices are pretty "reasonable". Roughly 350k for a newer 4 bedroom home. What kind of occupancy rate and nightly rate would make this deal make some sense?

Thanks for the help everyone

Trevor

[Evan R.]

Hey Y'all,

I crunched the numbers on the 108 airbnb listings in Temecula.

The average listing price per night is $111, and this includes room shares, and single rooms in someone's home, and whole houses.

The vacancy rate across the week is about 60%. This means that the average listing is unoccupied for ~4 days of the week.

You can see the spreadsheet here: Temecula9April2014VacancyRates.xls

Let me know if you have any questions. I can also recreate a spreadsheet that is more similar to what your looking at.

-Evan