Welcome to The Short Term Shop Short Term Rental Cash Flow Calculator! This tool allows investors to quickly and effectively evaluate a potential short term rental investment property.
Thinking of adding a short term rental or Airbnb to your investment portfolio? Unsure of how to go about analyzing your potential deals? There are many metrics that can be used to analyze whether a particular property will be an ideal short term rental investment. The three key evaluation metrics are: cash on cash return, cap rate, and net annual cash flow.
In most cases, these metrics will not be provided by sellers. Oftentimes, the only data provided by sellers is the gross annual income and a list of utility costs. This leaves investors to guess on occupancy rate and other potential expenses. What if the property has never been used as a short term rental? What if it has been underperforming under current management? What if the seller has not kept comprehensive records of the property's expenses and rental performance? This short term rental cash flow calculator can help bridge the gaps to estimate the three major evaluation metrics: cap rate, cash on cash return, and net annual cash flow.
Take control of your short term rental analysis with The Short Term Shop's Short Term Rental Cash Flow Calculator. The occupancy rate, capex amount, and maintenance fees are adjustable to accommodate a variety of market conditions, and to allow investors to analyze as conservatively or aggressively as desired.
Enter the data that pertains to your deal into the blank spaces to calculate your potential short term rental's cash flow, cap rate, and annual cash on cash return.
Start your short term rental investment search in the proven best markets for vacation rental investing with The Short Term Shop!
Have specific questions on short term rental investing? schedule a call with us!