Revenue: comparable ADR and occupancy, not a hopeful average
A defensible revenue line starts with a set of comparable listings -- similar size, similar amenities, similar location -- and their actual average daily rate and occupancy over a trailing twelve months, adjusted for seasonality specific to that market.
A single blended annual average, without a monthly breakdown, hides the slow season that actually determines whether the property survives a bad quarter.
Expenses: the ones buyers forget to model
Mortgage and property tax are obvious. The expenses that get underestimated are platform fees, cleaning turnover costs at realistic short-term rental turnover frequency, a maintenance reserve sized to a heavily used property, and either management fees or the real value of self-management time.
A model missing two or three of these can turn what looks like a strong cash-on-cash return into a property that barely breaks even once it's actually operating.
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.