Best way to evaluate a vacation rental property

Best way to evaluate a vacation rental property

Orchard Park, NY · Member since 2017 · 11 posts · 4 votes

Hi All

I am new to BP and real estate investing.  I am interested in long term rentals as well as vacation rentals.  What is the best way to evaluate a short term vacation property when you are looking to purchase?  Are there "best practices"?  Is there a calculator available similar to the rental property calculator?  What is the best way to get started?

Looking to make my first purchase in the next 6 months.

Thanks

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  • Investor · Denver, CO · Member since 2016 · 533 posts · 433 votes
    9y

    I always measure cash over cash.  Send me a PM and I can send you a spreadsheet.  You'll need to do some research to understand potential rates within the zip codes / area you are considering.  One tool I use is Airdna.co (not dot com) as they have some good free data for at least finding some initial data.  You can also perform some research on your own by searching properties on Airbnb and VRBO to get an idea of nightly / seasonal rates.

    Mike

  • Investor · Roseville, CA · Member since 2016 · 893 posts · 1k+ votes
    9y

    @Chris HartNova Check out this thread similar in topic. I put a link to my calculator in there for reference. Just know you will be likely running a 60-80% Op Ex ratio with an STR so start looking for the 'intrinsic value' associated with owning one. ;) Feel free to reach out with any other questions or even help evaluating some subject properties. I enjoy modeling them in other regions of the US to help me learn as well.

    Cheers!

    https://www.biggerpockets.com/forums/530/topics/46...

  • Orchard Park, NY · Member since 2017 · 11 posts · 4 votes
    9y

    @Michael Greenberg - Thanks for the advice.  Appreciate it.  Just sent you a PM.  Would love to see your spreadsheet and connect.  Best - Chris 

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