Airbnb property analysis
Originally published: 11/09/2023 15:31
Last version published: 13/09/2023 08:45
Publication number: ELQ-37242-2
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Airbnb property analysis

A simple calculator that will help determine the profitability of real estate investments when using real estate as a short-term rental property through Airbnb.

Description
A one-sheet simple calculator (financial model) that will help determine the profitability of real estate investments when using real estate as a short-term rental property through Airbnb.
 This model considers the possibility of buying a property with a mortgage, the costs of improvements and maintenance, and Airbnb commissions and management costs. Determines NOI, IRR, and ROE during the holding period. 

The model contains an Airbnb revenue generation model:
Airbnb model - revenues are based on occupancy (%)  and yearly average rates. 
The model includes the option to add debt for the property purchase. The debt can charge interest only or capital and interest repayment. The mortgage can have a fixed initial period at one interest rate. 


Outputs include a dashboard of summary results. Additionally, there is a results page that includes both monthly and annual financial statements for the project. Additionally, this contains a variety of useful key performance indicators for property investment.


Other assumptions include (though not an exhaustive list):
- Property purchase assumptions
- Various purchase fees
- Capital growth assumptions
- Renovation costs
- Ongoing taxes and sundry costs


Use the model's color formatting code to avoid errors. (blue numbers or letters on a gray background)



This is a ішьзду model which you can use for your own investment analysis and to present to prospective investors (banks or private equity institutions). 

This Best Practice includes
Excel

Alexandr Marchenko offers you this Best Practice for free!

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