Underwriting an Air BnB Multi-Unit Purchase

[Benjamin Romski]

I was hopeful to receive some guidance on the best way to underwrite a mid sized multi-unit building (11 Units) with a planned use of Air BnB. Would you underwrite it more in line with traditional multifamily apartment buildings while accounting for a higher vacancy rate? Or would you underwrite it more so like a hotel? 

Currently, I've broken out the revenue by unit type, utilizing an average price per night and accounting for vacancy rates. I've sourced the average pricing and occupancy based off of data from AirDNA.co. I understand that I need to include the Air BnB 3% fee in addition to the standard expenses and utilities. I've checked local laws and would be passing through the hospitality tax to the person booking the stay in addition to the cleaning service charge. Am I missing anything here? I'm just struggling to figure out the best way to calculate a revenue that is in-line with what is to be expected and want to make sure I'm not missing any expenses.

Thanks for your help!

-Ben