Determining market value of vacation rental? $6200 income in Nov
The question has come up in this string about what the market price may be on this property? I'm familiar with commercial and residential comp valuation for SFRs and MFs, but are vacation rentals a different animal? Is it still all about NOI and caps, or more about comps? Is it more like a par value for a business sale with a multiplier for the revenue/net based on stabilized performance?
I am unaware if we have many vacation rental places for sale in our market? Where would we look for such a venue? Loopnet? MLS? is there a site that specializes in VR? Thanks in advance.
The condo comps are just around $150k, but the cashflow is substantial. 3 stories and nearly 3000 sqft, a 5 bedroom, 4 bath that has been fully upgraded with new flooring, HVAC and kitchen plus granite countertops. Standard rent brings $1800/month. Vacation rental totals for Oct 2014 = $5500 and Nov 2014 = $6250. Thus my question about how to put a price on this condo.this condo.