Will running the analysis on a lead I received, I found a large difference in what my real estate agent had vs. the online calculator for the average gross rent.
Which one do you trust?
@Andrew Austin . The truth is until YOU have 12 months worth of your own data you have no idea what YOU can do. 10 different people will gross 10 different numbers on the same property. Use the enemy method and if you think it’ll make a few bucks let it rip!
Do you trust your agent? A good local agent will know better about the area than online metrics like zestimates, etc.
I would take 50% of what your realtor quoted and compare that with your online sources. I'm not going to knock realtors, but the ones I know are flibertyjibbets.
I know my first real estate agent told me I'd make 120k gross with my STR. After I took it over it cracked 210k. Airdna said 109k.
It's the chef that makes the soup. :)
@Andrew Austin what specifically are the discrepancies?
When I wrote my first post, I had long term rentals in mind. Everyone else is addressing your question from the short term rental perspective. I would agree that short term rentals is a much different game and unless you are talking to someone experienced in the market, I would be leery of taking financial projections from anyone or any system for that matter. You’ll need to make your own projections and determine how you will run your property.
quick and dirty due diligence on CL, facebook, zillow rentals should address this question well. Slightly tongue in cheek but I've taken the "housing wanted" prices on CL and the "for rent" prices and averaged them and its pretty accurate :) Rentometer pretty good if there are lots of comps. Realtors are generally either off or "optimistic" unless they do lots of rentals. My favorite is "the rents are x but they could easily be getting y" I like to assume a very innocent expression and ask: "oh thats great, why aren't they doing that?"
Compare it with your online sources. What is the gap?