No Numbers or PnL for STR

[Dawn McComish]

I am seeking feedback here.  In the Florida Keys, we have only a 2 cities that allow 7 day rentals, the rest are monthly, with a few scattered condotels.  There are a lot of places, 7 and 30 day rentals that actually make money, but people do not keep records and are unable to provide actual numbers.  I am usually able to obtain a gross total and sometimes actually have it substanitated by rental history, but that is the best I get in most cases.  These properties still have a good rate of return though. What's the best way to go about presenting these to investors without hard numbers and PnL?

[Chase Hoover]

Expenses can usually be estimated to a relative degree of accuracy. Ask the owners if they have utility bills. If not, wager a guess given your experience with other homes in the area. Property tax can be found through the county. Insurance is an educated guess. Everything else is operational - housekeeping, laundry, supplies, maintenance, tv/internet - which you can estimate based on your expected occupancy and experience with the area. Put together a pro-forma with your estimated revenue and expenses (always make this conservative). Debt service can then be deducted from the projected NOI to find projected cash flow.