Investor · Goshen, NY · Member since 2015 · 56 posts · 12 votes
In the market for another STR and wondering if anyone has a spreadsheet that calculates STR deals? Or, how do you decide whether or not to purchase a STR?
Real Estate Agent · Minneapolis · Member since 2019 · 338 posts · 219 votes
5y
Great question, and I am also looking for a good STR calculator. Might just build one myself, so if anyone has an awesome one please quote this message and let me know!
In terms of inputs I would look at occupancy, seasonality and average daily rates. In the Northeast there are lots of areas with year round interest - hiking and outdoors in the summer, skiing in the winter.
Lender · Temecula, CA · Member since 2011 · 43 posts · 20 votes
5y
@Katharine Gonzalez @Katharine Gonzalez I think the best approach is to first make sure it make sense first as a regular rental property especially with all the rules governing what the city bans them and you need to convert to a regular rental.
Lender · Temecula, CA · Member since 2011 · 43 posts · 20 votes
5y
I would be sure the STR would work as a regular rental as well due to all the regulations being imposed. I've seen people acquire a STR and then the city shut em down due to changes made.
When I select that Google docs link you posted it opens it, but only in "Read Mode." Is there a way to actually use that spreadsheet. Looks like a very good one if I can get it to work
Rental Property Investor · Nashua, NH · Member since 2014 · 587 posts · 477 votes
2y
@Katharine Gonzalez most of the traditional LTR analysis templates will work just fine, you just want to spend more time understanding vacancy rates and seasonal patterns in your market to translate LTR assumptions to STR earnings. Completely agree with others' recommendations to ensure it works for both LTR, STR, or seasonal rental. STR as a market is cbs going rapidly and even AirBnB is talking about the value of diversifying into LTR.
In the market for another STR and wondering if anyone has a spreadsheet that calculates STR deals? Or, how do you decide whether or not to purchase a STR?
Sorry to say, Excel is fine ; but one extremely important point for STR to cashflow with > 9% interest rate is that ...... you need to have at very least 65% LTV loan. This would make DSCR > 1.0 after adding utilities/HOA bill/etc in any area.
The default cap rate is between 3 to 4% these days, so whatever the number you put in there, result is the same.
Question is do you have more than 35% down, or not.