Turnkey Airbnb rental how do you calculate the numbers

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Turnkey Airbnb rental how do you calculate the numbers

Reuben Lewis
New to Real Estate · NYC · Member since 2026 · 15 posts · 3 votes

I have the opportunity to purchase a turnkey air bnb. How should I approach the purchase and run the  numbers. The property is studio apt. in a condo complex. I'm sure it will sell for more than the listing price. Is there a formula to use to determine the optimal purchase price?

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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    8mo

    I don't think STRs are generally valued as  business but instead as real property. This might be better answered by the gurus who frequent the Short Term Rental section if you can move it there. 

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  • Reuben Lewis
    OP
    New to Real Estate · NYC · Member since 2026 · 15 posts · 3 votes
    8mo

    Thanks, will do.

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  • Arman AhmedPro Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 963 votes
    8mo

    @Reuben Lewis

    When you're underwriting a turnkey STR, think of it more like a hybrid between real estate and a business. Start with conservative revenue assumptions using actual comparable STRs, not pro formas, then back into a max purchase price after accounting for all-in expenses like HOA, management, cleaning, reserves, utilities, and local regulations. In a lot of Midwest markets, investors lean toward this approach because purchase prices are lower, margins are wider, and you don't have to overpay just to make the numbers work. The key is buying at a price where the deal still cash flows with conservative assumptions, not peak performance.

    [email protected]614-418-6081
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  • Reuben Lewis
    OP
    New to Real Estate · NYC · Member since 2026 · 15 posts · 3 votes
    8mo

    Thanks,  I am looking into it. It's always about the purchase price. 

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  • Ashish AcharyaBusiness Member
    CPA, CFP®, PFS · Sarasota, FL · Member since 2017 · 5k+ posts · 3k+ votes
    8mo

    @Reuben Lewis, Great question and you're right to be cautious with turnkey Airbnb numbers. There's really no magic formula, but a disciplined approach helps. I would start with conservative revenue assumptions, subtract all real expenses (HOA, cleaning, platform fees, insurance, utilities, reserves), and see what return you get on your actual cash invested. That should guide your max price and your budget. From a tax perspective, depreciation and cost segregation can meaningfully shelter income, even in a condo, and if you materially participate in the STR, losses could offset other income, potentially reducing a significant amount of your tax liability. The key is letting after-tax, realistic numbers determine your price. Airbnb projections are not always sufficient.

    [email protected]941-914-7779
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  • Reuben Lewis
    OP
    New to Real Estate · NYC · Member since 2026 · 15 posts · 3 votes
    8mo

    Thanks Ashish, I turned away from that condo idea. 

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