Does BNBcalc.com work?

Question

Hello! I've recently come across a platform called BNBcalc.com which, supposedly, shows you the potential market, profitability, and comps, etc. for an investment property. Has anyone used this before and have any thoughts? Are there other websites or platforms that are better suited to help analyze the profitability of a potential investment property like BNBcalc claims to? (I came across it on social media, so I'm always wary of gimmicks or click bait).

Mark Reitman · Answer

I just sampled two of our properties and it estimated about 42% of the actual annual revenue, on one, and 47% of actual on the other. I don't think any valuation tool that spits out an estimate is reliable.

AJ Wong · Answer

BNBCalc is a solid service and like AirDNA is somewhat accurate on rental performance projections. More often than not all the 'STR Sites' over-estimate production potential - a good measure of this is to take an active STR with performance records and compare to the projection. Another helpful reference is to search comparable rentals on AirBNB/Rabbu without the calendar dates and review their occupancy and rates. One downside is that STR sites don't actually qualify whether a home can operate with/without a permit/license or the regulations - it is best to contact the local planning department directly for the properties you're interested in. Good luck!

Joseph Sauer · Answer

Hey Christine!

I haven't personally used BNBCalc, but I've heard great things about them and what they offer. They essentially do the time consuming analysis and data seeking for a fee. I think they offer teaching packages and do it for you packages. Something to definitely consider if you don't have the time or want to analyze potential properties.

If you're more a hands on person, Airdna is the standard (for me at least) on market analysis. You can analyze all the different markets and even get a decent breakdown on individual properties and potential revenue.

If you're a data person and wanted to do a deep dive on a specific property and compare it to all the other properties like it in your market, I highly recommend PriceLabs. They're wonderful with their dynamic pricing, but I think their data analytics and musing them to build comp sets is undervalued. It's really helped me with evaluating new properties and making sure my pricing was on target with my current property.

Christine Brown · Answer

@AJ Wong this is great feedback and not something I have really considered yet. Thanks so much!

Andrew Steffens · Answer

I have been doing fine for years using AirDNA paid subscription + double checking on Airbnb/VRBO sites.

Tyler Divin · Answer

BNBCalc is my favorite underwriting tool after having tried many.  I also have an AirDNA subscription.  I think a key in STR's is to be able to underwrite a lot of properties fast.

My BNBCalc process is open a new property, see what it says up top.  Then go down to the 40 comps it pulls in and arrange them from high to low by revenue.  Then I start opening them from the top of bottom and muting the stuff that's below and above the subject until I narrow the comps down to the properties that I think are the most comparable.  As you mute the comps and narrow them down the average occupancy and ADR of the comps will be shown above the comps (not affecting the underwriting itself).

Then I compare the ADR and occupancy of the comp set to what it started with, open the percentile chart to see where it lands and make sure it makes sense (if it's a top performer, middle of the pack, or under).  From there tune up the expenses paying particular attention to cleaning fee.  To calculate your average monthly cleaning fee take your occupancy rate % X 365 divided by the average number of nights you expect X the estimated cleaning fee divided by 12 and make sure your cleaning costs per month are real.

Button it up and now you have a living model you can share with others and they can play around with it.  What if we are really closer to the 75 percentile?  What if we're closer to 60 percentile?  What if we added a hot tub (go back and look at hot tub comps and unmute).Absolutely fantastic tool.

Patrick Osterling · Answer

We pull data from PriceLabs on 1,000 to 5,000 listings in the area, then narrow it down to the best dozen or two comps, then average out the annual revenue, occupancy, average daily rates etc. We focus on properties with a similar bedroom count (or that sleep the same number of guests), similar style, location, amenities, good reviews and availability.

That’s been the most accurate way we’ve found to analyze properties. Tools like BNBCalc and AirDNA are great starting points, but there are just way too many variables to rely on a quick address search. It takes a little extra digging, but in our experience, it’s 100% worth the effort. Hope this helps!

John Underwood · Answer

That's the key, double checking for yourself on VRBO and Airbnb.

Christine Brown · Answer

@Andrew Steffens thank you!! I will definitely check that out too.

Christine Brown · Answer

@Mark Reitman I definitely understand that. I'm more interested in using it to help determine potential markets, especially as I am looking out of state since California is so high in pricing.

Does BNBcalc.com work?

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