STR for Sale: Is this a Deal or a Dud? Ann Arbor - Part 1
Kate Stoermer 
Let's do a cursory look at a For-Sale STR in my hometown - is it a good investment?
I got feedback the other day that my price for scouting deals was a bit high, and I can respect that it might not be in budget but the reality is that finding deals is a time-consuming process for anyone. I've done tons (and tons), but the reality is to do it well it does take time!
Now, there are companies that write algorithms that absolutely can do some of the preliminary work, but as someone who leans heavily on "the right property" I'm much more apt to simply scan markets I already know are more lucrative than buy more software to push through potential deals that often turn out not to be great.
This is in no way a criticism of anyone else's approach, just my opinion and process; it works for me. So if you are interested in understanding how to evaluate potential acquisitions, I'm sharing my process by walking through an analysis of an available property.
The one I'm about to share is available as of today (although I'm guessing it won't be for long).
About the Deal -
So this is an existing short-term rental for sale in Ann Arbor, Michigan. Since I live in Ann Arbor, I know that the main draw for STR in this market is more utilitarian lodging - people traveling for specific purpose in the area like the college, sporting events, visiting area family. Some folks will travel just to hang out in the city, although I don't know that that particular STR would draw that crowd - part II of this video will help us understand that aspect.
The deal itself I just happened to see on Zillow today and opted to use it as a case study for my blog. I don't currently own or operate any STR in my hometown but I've been considering it.
What the Video Covers -
Part 1 is a 5 minute "back of the envelop" walk through, trying to decide if the offer is even worth my time to really dig into. The video covers assessing - at a high level, income potential and expenses and a look at whether or not it is allowed from a regulatory perspective.
I'll be posting Part II in a couple days, so stay tuned!
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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!