Buying an existing STR - due diligence checklist

[Susann Quijada]

First time STR investor - found a promising looking existing STR property. What do I need to watch out for as I go through the purchase and transition? Does anyone have a good resource for this maybe?

Specifically - how do I best verify past bookings and financials beyond tax returns? 

I am looking to sell-manage - fair to assume I lose all reviews and likely existing bookings of the property? 

Anything g else to watch out for? 

[Collin Hays]

Tax returns are the best way to verify earnings. Make certain that the annual revenue does not include housekeeping fees and sales/occupancy taxes. You don't keep those. Those revenues should have no basis in your analysis.  

VRBO will work with you to transfer reviews, but you will need the cooperation of the seller for this to happen.

Make certain you buy a short-term rental insurance policy with maximum liability limits. A standard homeowner's policy will not cover you if you have a claim.

The "biggie" things you should verify and take into account are:  The fitness of the septic, plumbing, and HVAC systems, and a termite inspection.  

Good luck!