How to determine the right price

[Serena Liao]

Hi fellows, 

I'm a newbie here, I understand analyzing cash flow is #1 thing in STR purchase, but I also want to ask about the value holding thing.

The purchase price almost dictates your property’s appreciation potential in a certain market, so do you keep buying in such market environment? Even we know a recession is on the way or is happening?

How do you know if the price works for you from the property value standpoint? I notice in my local market the price has gone up for 35-40% since early 2020. Sure, we don’t know how hard exactly this highly likely recession will hit, but what’s your strategy to set the price range if you don’t want to lose “paper” money immediately?

Also are nightly rate and occupancy rate numbers in the past year still work in such market environment?

Please share your experience and thoughts. Highly appreciate :)

[Bruce Woodruff]

@John Underwood is right. When you set up your spreadsheet to analyze your properties, you will have all the info needed to determine if the place is the right one for you. Of course we all have different comfort zones for ROI, income, expected appreciation, etc...