Many QI firms like ours will have calculators on their websites that can help you as well.The first thing you want to calculate is your adjusted cost basis, which is the purchase price plus capital improvements, minus depreciation.

He digs in to all of the different ways people can make money in real estate- he has 10 different options that he talks about, and to be honest, cash flow is really the one that will often give you the least benefit in the long run. 

Underwriting & Financial DisciplineMany STR owners bought emotionally — operators run models.Cash Flow Model: Build underwriting that includes all real costs (cleaning fees, utilities, management %, CapEx reserves, and realistic vacancy).Dynamic Pricing Software: Beyond Pricing, PriceLabs, or Wheelhouse to maximize ADR and occupancy.12-Month P&L Tracking: Monthly financial reviews comparing projected vs. actuals.Stress Testing: Underwrite for worst-case scenarios (20% occupancy drop, ADR compression, regulatory tax hits).System: Quarterly Financial Review SOP — Reconcile P&L, re-forecast cash flow, adjust pricing, and reset CapEx reserves every 90 days.7.

The right tenant segment keeps income steady, and with an experienced local team, my time commitment stays low.Advantages (when I invest in the right city)Inflation-adjusted rent growth can exceed inflation, lifting my standard of living over timeI need a fraction of the capital required by pure accumulation strategiesIncome can last for life and continue for heirsPerformance is driven by supply and demand, not daily sentimentDisadvantagesReal estate is not liquidMarket and tenant selection are critical, though the process is straightforwardEntry costs are higher, often about $140,000 cash plus a mortgage in Las VegasBottom line: stocks are for building a pile, real estate is for building an income stream.

I still use the 70% rule as a starting point, but I adjust based on neighborhood demand and current rehab costs.

Real estate agents benefit by advocating for their market.

Most of us learned by taking that first step, making mistakes, and adjusting as we went.

From a tax perspective, the benefit of a short-term rental is that if you meet the 100-hour rule, you can use losses to offset active income.

How are you adjusting your ARV estimates given shifting buyer demand?

The single-family market feels like it’s hit the brakes—demand has dropped, homes are staying on the market longer, and sellers are starting to adjust expectations.