Deal or no deal? NEED HELP FAST
Looking for advice. If low end rental projections (from area property Managment companies) don't cash flow, or are neutral, but AirDNA comps and market data analysis on ADR and occupancy show potential 25% cash on cash return, would you do the deal?!? Asking for a first time STR friend…😉
BTW - this friend is under contract and the increased insurance premiums are effecting the original projections…
If a local is telling you don't do it then probably don't do it
I think the mom and pop low tech vacation rental data does not get figured into Airdna making the Airdna data not as reliable in areas where the greater percentage of rentals are weekly vacation rentals.. However I am new to investing and I am being cautious so I tend to believe the local PM over the AirDNA stats. As another poster said the PM want your business so I am guessing they are trying to be as accurate as possible without over or under inflating the rental income. I guess I will find out though...
@Ryan Shekell run don’t walk.
@Ryan Shekell run don’t walk away!*
#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
- 5,466
- Votes |
- 7,010
- Posts
#2 Short-Term & Vacation Rental Discussions Contributor
- Olympia, WA
I would also walk. When you have local PM's telling you it won't work but AirDNA has it at 25%, there is something wrong there. With either the PM or AirDNA.
Most likely it will fall on the low side so you might break even. Not worth it IMHO.