Short Term Rental Market analysis tools??

10 Replies

Hey BP folks! I've toyed with the idea of a rental home in VT to be used partially as a vacation home for my family. What tools do you BP folks use to analyze short term market rentals? Anything worth while? I appreciate any feedback you can offer!


@Richard Lovering

I use AirDna to project income based on the location and size of home. It’s owned by AirBnb and provides some great info. Some of the data requires a subscription but most of the important info can be obtained for free. On the left side of the page there should be an option for projected income

I'd look at similar properties on Vrbo and Airbnb then look at their pricing and availability on their calendar 

You can get a good idea of what you can gross.

Then drop this in a spreadsheet and look at all your expenses to see what your net numbers could look like.

You can find typical expenses here on the BP blog.

I look at the local hotels/motels and figure out why the people are staying here.  Most of them are here to work temporary specialty construction jobs at a refinery.  A cheap motel room with 2 beds is $400/week.  I buy 3 bedroom bank foreclosures for $9500, furnish them and rent them out of $600/week.  All the bedrooms are decorated as if Hugh Hefner did it himself.

Paul Sandhu - The Hugh Hefner of Working Mans STRs

Originally posted by @Jessie Leonard :

Avery Carl , are there benchmarks to look for in terms of Cash on cash return, cap rate & total annual cash flow?

You are thinking too much on this analysis.  Go where the money is. Don't fool around doing ratio analysis.  

I should know.  My bachelors was in Finance and so was most of my MBA.

This is my criteria:  Is it a good house?  Is it in a good neighborhood?  Will 6 months of rent be equal to or greater than the purchase price of the house?  If I get 3 yes's, we buy the house if we want another one.