Use it for the real underwriting questions
Can it cash flow?
Compare gross revenue against debt service, fixed costs, management, cleaning, and maintenance reserves.
What occupancy breaks even?
Stress-test the property against slow months, lower ADR, higher interest rates, and utility bills with main-character energy.
What is the return?
Track cash-on-cash return, total cash invested, annual profit, and long-term exit assumptions.
What changes the deal?
Adjust ADR growth, expense inflation, appreciation, taxes, and personal-use days without rebuilding the model.
Inputs to gather before you start
- Purchase and financing: price, down payment, interest rate, loan term, closing costs, and furnishing budget.
- Revenue: expected ADR, occupancy, seasonality, personal-use days, fees, and lodging tax handling.
- Expenses: HOA, management, cleaning, utilities, insurance, maintenance, property tax, and STR license costs.
- Exit assumptions: appreciation, income tax, capital gains, state tax, and depreciation recapture estimates.