Traditional appraisals often miss short-term rental income potential
A standard residential appraisal leans heavily on comparable sales of similar homes in the area, which frequently doesn't account for a property's actual or potential short-term rental income -- especially in markets where most sales are owner-occupied.
This can cut both ways: a property can appraise below what its income justifies, complicating financing, or a seller can lean on inflated income claims to justify a price the comps don't support.
Underwrite on income, finance against the appraisal, and reconcile the gap
The practical approach is to underwrite the deal on projected net income against real comparable short-term rental performance, while separately confirming what the property will actually appraise for, since that number governs loan-to-value on most financing.
A done-for-you acquisition process runs both numbers before an offer goes in, so a buyer isn't surprised by a financing shortfall between what the deal is worth on income and what it appraises for on paper.
BNB Accelerator's acquisitions team, led by Nick Korom, screens over 1,000 short-term rental listings a week and hand-delivers the roughly 2% that clear underwriting. Book a free consultation to see what a done-for-you short-term rental acquisition looks like for your situation.