Airbnb Rental Calculator
You are considering adding an Airbnb or short-term rental to your investment portfolio. Not sure how to evaluate potential deals? There are many metrics that you can use to assess whether a particular property is an ideal investment for short term rentals. The three most important metrics for evaluating a property are cash on return, cap rate and net annual cashflow.
The earning potential for short-term rentals may be up to three times greater than that of long-term rental properties. Our Airbnb profit calculator calculates the earning potential from any property worldwide using data from more than 10,000,000 VRBO and Airbnb listings.
Airbnb CalculatorThe average ROI for long-term rental properties is between 4 and 10%. Anything above 12% is considered to be well above the average. Short-term properties usually yield higher returns of between 10 and 15%.
There are many theories about what the right return on investment (ROI), for a rental property. Cap rates can vary from one city to the next, and even from one neighborhood to another. When shopping for property investment opportunities, it is important to compare like with like. This is commonly known as the Comparison Approach (SCA). This method is used by real estate agents and appraisers.
The SCA is a simple way to compare homes in an area with similar features. If you are comparing a single-family home to other single-family homes in the area, you will want to ensure that they share the same features. It is important to determine the number of bedrooms, bathrooms and square footage.