Advice on negotiating price

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?

6 comments

Advice on negotiating price