Vacation Rental Underwriting and Business Valuation

6 Replies

Hello all. 

I am working on creating and establishing a solid financial model to encapsulate current owned and operated SFR vacation rentals cash flows, expenses and capital improvements. I would like to also be able to indicate timeline for rentals by month i.e. our spring and fall months are peak seasons and i would like to be able to model that monthly and then roll it up to an annual number, and keep the same formatting and thought for all future projected cashflows for those current homes. In addition, I would like to also show or have the ability to continually incorporate new acquisitions of homes which will also be rolled up into the future cashflows.

At the end of the day, my goal is to effectively value the business based on a certain time period given the net cash flow of the portfolio. 

I know it seems daunting and I think Im almost there in my head but would like to get some insight or perhaps a look at someone else's efforts with the same structure. 

If you need more clarification please ask! 


@Rob Beardsley - I have multiple spreadsheets for MF and commercial but nothing turnkey for vacation rental portfolios with uneven distributions of revenue throughout the year. 

Do you have STRs now, or are you just trying to build a spreadsheet to analyze possible investment properties as STRs?

If you currently own an STR, should be easy enough to figure out when you make your money and what your expenses are. If you're looking to buy something, the answers that keep coming up 'round these parts is either study the Airbnbs and VRBOs in your desired area for availability and rates, or buy into AirDNA/ Mashvisor/ etc.

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