Deal or no deal? NEED HELP FAST

Tallahassee, Florida
Short-Term & Vacation Rental Discussions
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Deal or no deal? NEED HELP FAST

Ryan Shekell
Rochester, NY · Member since 2017 · 27 posts · 3 votes

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…

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y

Don't trust Airdna. You need to manually get accurate numbers to work with.

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  • Jordan MoorheadBusiness Member
    Real Estate Agent · Austin, TX · Member since 2015 · 5k+ posts · 3k+ votes
    3y

    If a local is telling you don't do it then probably don't do it

    [email protected]512-888-9122
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  • Amy Mead
    Member since 2022 · 21 posts · 5 votes
    3y

    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...

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  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    @Ryan Shekell run don’t walk.

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  • Bud Gaffney
    Rental Property Investor · Boston, MA · Member since 2019 · 2k+ posts · 1k+ votes
    3y

    @Ryan Shekell run don’t walk away!*

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  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    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.

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