Anyone considering purchasing a property and need some extra eyes on it? Would love to have the community help each other out. Drop the deal below!

I have finally put an offer on my first STR! It is a really sharp property in the Poconos. It should hit P10, I believe, definitely P25, with minor to zero changes. I looked comps in a 5 mile radius, as well as 2 mile radius. The lower revenue projection, (from 5 mile radius) gives me cash on CoC the first year over 25%! (P25: $423ADR/58%) --> 26.18% CoC (P10: $504/72%)---------> 51.40% CoC The 2 mile radius numbers are higher, but based on a smaller data set. In my non-AI attempt to estimate revenue (which determined pre-STRIQ), I used ($475/60%)--> 34.68% for my best case. So how do I determine my highest purchase price? Use P25 numbers and back calculate 10% or 15 % CoC?? Or may be my $475 ADR, which seems pretty realistic to me?

I work for CSSI (Cost Segregation Services LLC), which has done over 60,000 engineering-based cost seg studies since 2003. About 30% of our studies are on STRs. What I've learned is that the KEY differentiator when it comes to the percentage of the property that qualifies for Bonus Depreciation in an STR is the amount of 15-year Land Improvements. Any assets in a Cost Seg study that are allocated to less than 20-year depreciable lives, qualify for 100% Bonus Depreciation under current tax law. In a Cost Seg study, the percentage of assets that get allocated to 5-year (internal) depreciation is fairly consistent across STR properties, whether they be homes or condos (QIP which I mention below is the caveat). That is not true for 15-year assets. Condos have very little Land Improvements such as driveways, fencing, patios, pools, landscaping, docks, etc. that qualify as 15-year depreciable items. The more of those things you have in an STR, the better for increasing depreciation deductions and Bonus Depreciation. One other lesson learned regarding Cost Seg studies on STRs and exterior assets -- a deck that is adjoined to the house is considered part of the structure and does not get allocated to 15-year asset category. If that deck is separated from the house, it would get 15-year asset allocation. One final note, this one regarding Qualified Improvement Property (QIP). If you buy a property that has been used as a commercial property, STR, or Long-Term Rental in the past, then come in and make internal, non-structural, upgrades such as flooring, painting, kitchen and bath upgrades, lighting, and many other things to the interior of the original footprint, the majority of those improvements are QIP upgrades and get 15-year asset allocation and 100% Bonus Depreciation. You can accomplish the same thing if you buy a property that has never been used as commercial or rental property in the past, but you must use it as an STR for a few months after purchasing it, then make your QIP upgrades.

What explains the almost $100k difference in Projected revenue with AirDNA and strIQ for the same property? When looking at comps, this has a HUGE impact on underwriting for a current deal I am working on

When do you make an LLC to hold your STR? Shouldn’t you also make a holding company to hold the LLC?