How to Analyze an Airbnb Deal Before You Buy
An Airbnb deal should be analyzed with revenue, expenses, debt, cash flow, cap rate, DSCR, break-even occupancy, risk, and offer-price discipline before making an offer.
Start with revenue assumptions
ADR and occupancy should come from comps or conservative manual assumptions, not wishful thinking.
Model all operating costs
Include taxes, insurance, HOA, utilities, cleaning, supplies, repairs, reserves, platform fees, permits, and management.
Stress-test the offer price
A good deal should survive conservative assumptions or show exactly which assumptions need verification.
FAQs
What is break-even occupancy?
Break-even occupancy is the occupancy rate needed for revenue to cover expenses and debt service.
Can Lodge Ledger compare conservative and aggressive scenarios?
Yes. The Deal Analyzer models conservative, base, and aggressive scenarios.
Related product pages