The 5 numbers that separate profitable Airbnbs from money pits
Most people buy an Airbnb and pray it works out. Here's how to actually know before you buy.
These are the 5 metrics I check on every single deal:
1. Average Daily Rate (ADR)
What comparable listings charge per night. If your market's ADR is under $150, your margins are going to be razor thin after cleaning + management fees.
2. Occupancy Rate
Anything below 60% in your target market = red flag. Check AirDNA or Mashvisor before you even make an offer.
3. Cash-on-Cash Return
Forget appreciation. If the property doesn't cash flow from day one, you're speculating, not investing. Target 15%+ CoC.
4. Cleaning + Turnover Costs
The hidden killer. A 2BR that turns over 20x/month at $85/clean = $1,700/mo just in cleaning. Factor this in or get wrecked.
5. Regulation Risk
Check your city's STR laws BEFORE buying. Some markets are banning Airbnbs entirely. Don't be the person who finds out after closing.
I broke all of this down (with the exact formulas) in a 1-page blueprint. No fluff, just the playbook.
If you want it, it's $7. Link's on my page.
