AirDNA Report -- Accurate or not?

Most Popular Reply

John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
2y
Quote from @Jesse Turner:

@Sean McDonnell, one thing to consider is their revenue numbers count all revenue (nightly rate, fees, taxes) so you should deduct those from the AirDNA revenue projections.

This is easier to do on a property-specific level since you can roughly estimate the cleaning cost for a specific property. On a market level, I'd want to filter down to properties of a specific size so I can confidently deduct estimated cleaning costs.

Overall, I think you're right to consider looking at sub-markets near the target markets on the AirDNA report. In the end, it comes down to if an individual property makes sense, though starting at the market level can simplify your search.


 I think they include cleaning fees also which are a pass through.

2Reply
See this reply in the discussion

12 Replies

Jump to latestLatest
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    2y

    Logan, Ohio is definitely accurate! I believe as a whole and considering every aspect of investing...not just STR numbers....the list is pretty good.

    [email protected]330-557-3021
    1Reply
  • Jesse Turner
    Insurance Agent · Gainesville, GA · Member since 2023 · 99 posts · 89 votes
    2y

    @Sean McDonnell, one thing to consider is their revenue numbers count all revenue (nightly rate, fees, taxes) so you should deduct those from the AirDNA revenue projections.

    This is easier to do on a property-specific level since you can roughly estimate the cleaning cost for a specific property. On a market level, I'd want to filter down to properties of a specific size so I can confidently deduct estimated cleaning costs.

    Overall, I think you're right to consider looking at sub-markets near the target markets on the AirDNA report. In the end, it comes down to if an individual property makes sense, though starting at the market level can simplify your search.

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    2y

    If you look back at all of the discussions here about AirDna, you will find that most STR investors do not trust it's accuracy. About this report, I can't really say. I personally do not agree that RE prices drop as they are predicting. I think lowered Interest rates will create a buying frenzy, a small one at least... :-)

    2Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y
    Quote from @Jesse Turner:

    @Sean McDonnell, one thing to consider is their revenue numbers count all revenue (nightly rate, fees, taxes) so you should deduct those from the AirDNA revenue projections.

    This is easier to do on a property-specific level since you can roughly estimate the cleaning cost for a specific property. On a market level, I'd want to filter down to properties of a specific size so I can confidently deduct estimated cleaning costs.

    Overall, I think you're right to consider looking at sub-markets near the target markets on the AirDNA report. In the end, it comes down to if an individual property makes sense, though starting at the market level can simplify your search.


     I think they include cleaning fees also which are a pass through.

    2Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    2y

    Im in Florida so was a little surprised by Spring Hill but I generally agree with the Florida markets listed.  Keep in mind these are not necessarily the hottest but the most investable.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    2Reply
  • Christopher Zebrowski
    New to Real Estate · NJ · Member since 2023 · 8 posts · 3 votes
    2y

    Just analyzing the average revenue and typical home prices that the report provided, I found that most of the markets wouldn't really be great place to get started. For me, the revenue to price ratio was coming up 20% or less which is typically going to give a lower than 12-15% Cash on Cash return. I was also disappointed that they included so many locations that were heavily regulated. So now you've got to figure out which area of a town is MU-1 before you can go deeper and see if there are any homes even worth trying to make work. In my opinion it was nice to look at, but not really a great tool if you're looking to get started in STR.

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    2y

    Hey @Sean McDonnell, meh. They put out this report and sometimes it just seems crazy.

    Area's where the housing prices are in the stratosphere and the risk is high.

    I don't know about this list. I skimmed it but that is about it. I just don't trust their data to be super accurate.

    0Reply
  • Tae Nam
    Member since 2018 · 7 posts · 2 votes
    2y
    Quote from @Christopher Zebrowski:

    Just analyzing the average revenue and typical home prices that the report provided, I found that most of the markets wouldn't really be great place to get started. For me, the revenue to price ratio was coming up 20% or less which is typically going to give a lower than 12-15% Cash on Cash return. I was also disappointed that they included so many locations that were heavily regulated. So now you've got to figure out which area of a town is MU-1 before you can go deeper and see if there are any homes even worth trying to make work. In my opinion it was nice to look at, but not really a great tool if you're looking to get started in STR.

     @Christopher Zebrowski, I would love to ID markets where revenue:price ratio is 20% and higher, which sounds like is what you are looking for. 

    Have you identified markets where this threshold is met? 

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    2y
    Quote from @Tae Nam:
    Quote from @Christopher Zebrowski:

    Just analyzing the average revenue and typical home prices that the report provided, I found that most of the markets wouldn't really be great place to get started. For me, the revenue to price ratio was coming up 20% or less which is typically going to give a lower than 12-15% Cash on Cash return. I was also disappointed that they included so many locations that were heavily regulated. So now you've got to figure out which area of a town is MU-1 before you can go deeper and see if there are any homes even worth trying to make work. In my opinion it was nice to look at, but not really a great tool if you're looking to get started in STR.

     @Christopher Zebrowski, I would love to ID markets where revenue:price ratio is 20% and higher, which sounds like is what you are looking for. 

    Have you identified markets where this threshold is met? 


     There are still some 20% gross margins in Tampa area.  It is not super common but I see 1-3 every month or so

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Tae Nam
    Member since 2018 · 7 posts · 2 votes
    2y


     There are still some 20% gross margins in Tampa area.  It is not super common but I see 1-3 every month or so

    Interesting. I'll start tracking Tampa. @Andrew Steffens, if you see any and you are not going to pursue it or want a money partner, please let me know!

    0Reply
  • Christopher Zebrowski
    New to Real Estate · NJ · Member since 2023 · 8 posts · 3 votes
    2y
    Quote from @Tae Nam:
    Quote from @Christopher Zebrowski:

    Just analyzing the average revenue and typical home prices that the report provided, I found that most of the markets wouldn't really be great place to get started. For me, the revenue to price ratio was coming up 20% or less which is typically going to give a lower than 12-15% Cash on Cash return. I was also disappointed that they included so many locations that were heavily regulated. So now you've got to figure out which area of a town is MU-1 before you can go deeper and see if there are any homes even worth trying to make work. In my opinion it was nice to look at, but not really a great tool if you're looking to get started in STR.

     @Christopher Zebrowski, I would love to ID markets where revenue:price ratio is 20% and higher, which sounds like is what you are looking for. 

    Have you identified markets where this threshold is met? 


    I don't really expect to see incredible numbers when looking at an entire town's overall averages.  I didn't expect all the numbers from the markets on the report knock my socks off, but I did figure at least one out of the 25 listed could come close.  Recently I've turned my attention to homes in towns that surround traditional popular destinations hoping to get in where the average home goes for a little less.

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    2y
    Quote from @Tae Nam:


     There are still some 20% gross margins in Tampa area.  It is not super common but I see 1-3 every month or so

    Interesting. I'll start tracking Tampa. @Andrew Steffens, if you see any and you are not going to pursue it or want a money partner, please let me know!


     Sure thing! I just sent you an email with last week's list

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free