NOI Help for STR in Martha's Vineyard - Property Manager Needed

Financial Advisor · Hingham, MA · Member since 2015 · 36 posts · 15 votes

Hi,

I'm a financial planner in MA and my client is considering purchasing a home in Martha's Vineyard. I believe they would make the necessary cosmetic updates to make it more marketable, but I'm trying to understand and estimated NOI if they were to rent the property "hands off" with 2 to 4 weeks of personal use per year.

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Mike GrudzienPro Member

Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes

6mo

Just for initial research, have you tried connecting with local Host groups, property managers, short-term rental PMs and co-Hosts?

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
6mo
Just for initial research, have you tried connecting with local Host groups, property managers, short-term rental PMs and co-Hosts?
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
6mo
NOI is going to be dependent on so many variables such as size of property, exact location, views, amenities, how many people it can sleep etc.
Someone would need to analyze the property against similar properties in the area to get a good guess of the revenue it could generate.
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
6mo
I would definitely consult a good local PM if you can find one. This is a national group so you may have more luck on Facebook. Otherwise they or you will have to do the underwrite on your own and tools like AirDNA/Rabbu/BnBCalc can help you get the data but be careful not to just rely on their algorithmic number and actually dive into the comps themselves.
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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
6mo
Yeah like the others said @Bob D., there is a lot to unpack.
What is your clients goal? Tax offset? Income? Retirement?
NOI can mean something different to different people.
For us, it is exactly what it means. How profitable can we be without worrying about offsetting a high W2 income tax burden.
Martha's Vineyard is a pretty pricey market. I would have them simply start looking on AirBNB and VRBO and see what others are getting for a nightly rate, amenities and what their calendars look like.
That will give them a beginning idea of what a typical place they could afford will bring in. It won't be perfect but it will give them an idea.
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