STR for Sale: Is this a Deal or a Dud? Ann Arbor - Part 2
Kate Stoermer 
The second and final post for in the property analysis for an available Short-term Rental in the Ann Arbor, MI market
So in part one (missed it? Grab it HERE) we did a back of the envelop of a property that I came across on Zillow that is (as of this authoring) for sale in my hometown - Ann Arbor, MI and I decided to do an analysis of the property and share it with you! In that first part, we did the high level income potential and expense projection to come up with if its even worth more time to evaluate the deal - and dug into understanding the regulatory environment for the municipality. Part two takes that deep dive into the financials. Some of the concepts covered here;
Submarkets
This property is in a submarket of a larger market; Location is a huge driver for revenue, this is a key concept that impacts this analysis
Data Sources
You'll see me land in a VERY different projected income range that Airdna and Data Rabbu suggest is possible once I dig into the data available to me through various data sources - and we get into why we can't take the suggested revenue for gospel when we are analyzing for profit potential.
Price Drivers
I reference the important of location and understanding what's available in a market at what price points in order to understand the budget tier a property belongs in; this aides in asigning a budget tier to a property and gauging price drivers both of which impact what really will influence what will drive demand for a property
In the video, I mention leaning in to understand more about how to achieve the maximize income potential for your property - you can learn more HERE about that. As always, I appreciate your support of my small business and look forward to connecting!
Don't forget - watch Part 1 HERE if you haven't!
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Hey Boss! I'm Kate, owner/founder of The CEO Host. If you are interested in taking a leap into short-term rentals - or have some questions about your existing business, my goal - passion, and career, is to help YOU succeed. I've coached hundreds of folks getting started or looking to optimize, analyzed more deals (and duds) than I could count, completed thousands of hours of education and training, attended conferences... So don't be shy. A good CEO knows to bring in expert help - and that's what I'm here for! Lets HOP ON A CALL and chat!