The BEST Airbnb Analysis Tools

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What’s up guys, in today’s video, I’m going to be sharing with you three of my absolute favorite must have tools for analyzing short term rental investment opportunities. So when you’re looking to buy a short term rental or an Airbnb property, you want to make sure that you run the numbers on Analyze it so that you know, you’re gonna get a solid cash flow from the property and a solid overall return on your investment. Now in order to do that, you need to have the right tools in your tool bag. So in this video, I’m gonna be showing you some of my favorite tools for getting those numbers down then

let’s not wait any further, let’s start with my absolute favorite tool, which is err DNA. So this is Aaron DNA, and I love using it, I cannot possibly do my analysis without this tool. It is so amazing. And basically what Aaron DNA is, it’s like a cheat code for analyzing properties on short term rental. Now, I’ll tell you what most people that I talk to do to try to analyze investment properties is they go on Airbnb, they look at what properties are renting for, and they try to guesstimate what that property is actually going to go for what the actual occupancy rates going to be. And so the number they end up with is basically as accurate as if they had just put a big number wall up and thrown a dart at it, it’s totally off because they’re only looking at the properties that haven’t been booked. They’re not factoring in seasonality, they’re not factoring in weekday versus weekend pricing, and they’re guessing at what they think occupancy rates are going to be. Now, the reality is you’re going to come up with drastically different numbers, if you look at the properties during high season versus low season, so your analysis is just going to be so far off not to mention things like not remembering to factor out cleaning fee is not remembering to factor out your, your Airbnb commission that gets paid to the platform. There’s all kinds of different flaws. Air DNA is the solution to all of that. So air DNA is going to allow you to actually look at the net revenue that goes to any given host and two properties in an area overall, you can look at the averages to figure out what the revenue is going to be for a given property after factoring out Airbnb commissions and things like that. And you can look at what the property’s actually got booked for and actually generate in revenue rather than just looking at what they’re listed for. Because a lot of the times hosts have to lower their prices from what they’re currently out when you look on Airbnb in order to actually get bookings. And so you really want to make sure that you have the accurate numbers. And so air DNA allows you to look at a given market like this market, I’m looking at Korth lakes, I can see the average revenue for all five bedroom properties, I can filter by price here to look at more budget, more economy more luxury properties, depending on the property that I’m looking at purchasing, so I get the most accurate comparables. And I can also filter for things like the real estate type, the listing type, whether it’s professionally manage the level of rating, it has the number of guests, it can accommodate number of bathrooms, it has all that great stuff. So it just allows me to have a lot of customizability. So I can get really, really accurate comparables and see what the revenue looks like. I can also download that into an Excel spreadsheet, that’s gonna allow me to really look into the deep dive numbers and see what the property looks like over a year overall. And one of the cool things you can do as well here, I’ll just download it here. And I set up a quick little macro in Excel to be able to do this. But what you can do is also look at historical trends. So you can see whether properties are generating more or less revenue than they were in previous years. So if we just run it here, again, you’d have to set this macro up on your own, but it’s pretty straightforward. Literally, all I’m doing is just using the sum function to look at 50th and 75th percentile data for the last five years historically. So you can see that in this market, it went up considerably. And it’s been maintaining these really high revenue numbers over the last couple of years. So you can actually actually actually estimate both a reasonable scenario and a best case scenario and even a worst case scenario, so that we know well, what if it reverts back to where it was several years ago. And what if our property isn’t one of the top 25% performance isn’t in that 75th percentile? Well, we can actually know the numbers of what that would look like. So that we can make sure that not only is there upside potential in the deal, but also that we’re not taking on downside risks that we can’t stomach. So super, super helpful. The other stuff you can do is look at the nightly rates, you can look at occupancy rates, you can look at all this different data that just allows you to figure out really accurately how a given property is going to perform. What I really love about it as well is that you can come over to the map here and you can filter let’s say I’m looking for just five bedroom properties, like I just pulled numbers for Well, I can just eliminate all the other properties except for five bedrooms and larger from the map. And then I can look at the actual properties themselves and see the kind of numbers they’re doing. Like this property, for example on Balsam lake that was only available for 148 days of the year and brought an $81,000 in revenue, so I can look specifically what I love to do is look specifically for properties that were available as close to 365 days of the year as possible. So for example, this one pretty darn close, it’s available for 10 out of 12 months. And I can actually look and see if it’s qualitatively similar to my property. So if I’m projecting, let’s say $95,000. In revenue, I want to make sure the properties I’m comparing this to are realistic for what I’m actually looking at. If this property is way nicer, or not nearly as nice as the property I’m looking at, then I can adjust my numbers accordingly by looking at not just the quantitative but also the qualitative, so that I find super, super helpful, you can also scroll through the top properties in the market to see what features and amenities they have. So that you can kind of lend lens and ideas from that and make sure that your property is going to perform really well. Also all kinds of different stuff that you can do. I personally don’t use a ton of the features on air DNA, like for example, smart rates, pacing, seasonality, I have different tools that I use for that, but top properties and the and the occupancy rates and revenue are where I live. One of the things I don’t love about air DNA, and that I think people make a mistake is that they use the rental iser, where they’ll punch in a property address. And then they’ll get an estimate for how much the property will bring in. In my experience, this number is highly, highly inaccurate, because all it does is pull a few comps that it thinks of from the from the general vicinity right around that property. But those comps can often be very inaccurate. And because there’s such a small number of them, I think generally they pull about 10, the numbers can get skewed pretty significantly, because you’re dealing with such a small sample size of numbers. So I don’t love that tool. But I do love the Revenue tab that allows me to look at a much larger sample size and customize the properties that I’m actually looking at within that sample size. So that I find super, super helpful. And what I’ll do is then punch those numbers into this spreadsheet that I’ve got that again is available, it’s linked down below. If you sign up for the free training on how to invest in short term rental property successfully, we’re going to send you this spreadsheet completely free. So if you just go ahead and sign up for that and the link in the description down below, you’ll get sent this tool completely free. And that’s where I punch these numbers in so that I can run the total numbers and see what my overall cash on cash return is going to be see what my monthly cash flow is going to look like all that I’m going to dive into this in more detail. But before I do, I want to talk about my second. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnb and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnb. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties. There’s actually another free training linked in the description down below as well, there’ll be a really great fit for you. So whether you want to invest in short term rental properties and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, that will definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below.

But before I do, I want to talk about my second tool that I absolutely love for analyzing properties, which is price labs, specifically the price labs market dashboards. Now, a lot of you guys know price labs as a pricing optimization and pricing automation tool. And I use it for that as well. And quite liked some of the features and functionality. I’ll probably have another video coming out just on that in the future. But what I really, really love is the market dashboards feature. And specifically, what I really love is the amenities section here. So there’s a whole bunch of different functionality that I haven’t really played around with yet on price labs market dashboards, but the one that I absolutely love is the amenities section. Now the reason I love this is because it allows me to figure out which amenities are going to give the best ROI, the best return on my investment, which ones are actually worthwhile. Before this, it was up to a lot of guesswork. And I didn’t love that I love having the numbers to back something up. And I just can’t get this data from other places. Err DNA doesn’t give me this data. So what’s really cool here is that you can look at any different number of potential amenities. And you can see the percentage of listings in the market that you’ve outlined that have that amenity relative to the percentage of total bookings for properties with that amenity. So amenities like a hot tub for example, you can see that in this part. ticular market that I’ve identified here, there’s only 16.6% of listings actually have a hot tub, but 23.72. So almost 24% of the bookings in that market are for properties with hot tubs. So there’s a disproportionate number of properties that are getting booked with hot tubs relative number of actually have them, you can see that for a lot of other amenities like, for example, Wi Fi, you know, it’s pretty well, then the percentage of properties that have them are the same as the percentage of properties being booked. So it’s not like that amenity is actually causing people to book it more often, it’s a pretty equal distribution. But you can see here that there’s an obvious skew for booking towards, towards properties with hot tubs. And then if we look, there’s a huge drop down of all kinds of different amenities that we can filter for. And so if you’re thinking about, for example, spending money on a hot tub, you know that it’s actually going to be a worthwhile investment, or at least you have some data that points you in that direction, obviously, we don’t know that it’s necessarily going to lead to a higher to a higher overall price that you’re getting for the listing. But this shows that it is going to likely lead to more bookings, which is good, it means we’re gonna get more money rolling in. Whereas if we want to invest more money and say put a pool in, we can look at that. And let’s see what we got. So you can see that only 3.7% of listings habit. And actually, a smaller amount of the bookings are for properties with pool. So you can see that it’s not really worthwhile to get a pool and spend all that money in this particular market. So that I just find really, really cool that you can actually get the numbers behind which amenities make the most sense, there’s a whole bunch of other features in the market dashboard. And they also kind of break it down even more here and show you which amenities are the most desirable, you can see a pool is not very desirable wineglasses, outdoor seating hot tubs are desirable. So that’s just a different way of visualizing this, that makes it even easier. So you can just see exactly which amenities are the most desirable and make sure your property has those super, super valuable especially for some of the easier ones to grab, like board games that are inexpensive a hairdryer, a hot water kettle, and also super helpful for making decisions on those larger ticket items like hot tubs. So that is all super helpful. And again, those are the numbers that I’m going to budget in here. So that for example, if I am going to be adding a hot tub, I can come over to our fancy dancy furnishing tab, and I can add one in here at the budget $8,000 to make sure that’s included in my furnishing budget to make sure I’m going to make as much as possible on this property. That’s what I love about this tool is that we’ve kind of put it together in a way that works for investors, because built by us by investors for investors. So again, if you want to download it, it’s completely free, we’re going to send it to you, when you sign up for the free training that’s linked down below. Just check out the training for how to invest successfully in short term rental properties. And Airbnb is sign up for that. And it’s going to hit your inbox right after that. So this is basically where we come in here and stipulate how many like bedrooms, how many bathrooms there are in the property that we’re going to be furnishing. So let’s say that I’m looking at like a four bedroom, let’s say a five bedroom that I want to put for queen beds, two twin beds, and you can adjust these numbers as well if your furnishing costs differ in your market, or if you’re furnishing in a more high end or more budget conscious way, these are just the numbers that we put in. And then you can basically figure out what the furnishing cost is going to be all in and then put in your purchase price things like your home inspection costs, your closing costs, land transfer tax, if you’re in Canada, all those different numbers, then again, I’ll skip over this part, this is basically just where we put in the revenue projection that we got from air GNA. Combine that with the occupancy percent, let’s say it’s an 80% occupancy rate. And and that’s going to factor into our overall cleaning budget, we can set our cleaning rate by just calling around to cleaning companies in the area, put in our loan assumptions. If we’re putting 20% down the interest rate we’re paying on the mortgage, the amortization period, then all your other fixed costs, like your electricity, your yard snow removal, your advertising costs, your accounting, your cable, internet, all those different fixed expenses throughout the year. And then you basically get to analyze the deal and see if it makes sense. Now for us anything over 15% cash on cash return is a sweet spot. That’s what we’re really looking for. Anything over that is great. And we’re generally looking for a total ROI of about 25 to 30%. And so you can see here in the spreadsheet that on this property, again, this is just numbers that I randomly put in, you would look at this and say okay, I’m actually going to get a 27% Almost return on my total on my total investment, just cash on cash return. So that’s really good. It means that after paying for all my expenses, like my cleaning fees, my operating expenses, my mortgage payments, everything I’m going to be netting cash flow of $3,000 a month or $36,000 a year and I’m going to do that only having to put in about 110 $112,000 to close 134,000 to launch and then $144,000 Once they factor in like my capital reserve If I’m putting away for a rainy day for any kind of maintenance or capital expenses, so, again, just super, super helpful to have these numbers, so many investors just invest blindfolded because they don’t have these numbers. And I find that it’s just super helpful to be able to punch everything into a spreadsheet that factors in your first year amortization, so you can look at how much principle you’re paying down. There’s all kinds of really cool functionality that we built into this to make it as useful as possible for you to figure out if an investment is actually worthwhile. So those are my top three favorite must have tools. I’ll have links in the description down below if you want check them out for yourself. And like I said, this spreadsheet is going to be free LinkedIn description as long as you just sign up for the free training that free training is going to show you everything you need to invest successfully in short term rental properties and get really great return on your investment. And as a bonus, we’re going to send you this tool completely free. So those are my favorite tools. If you have others that you absolutely love, let me know in the comment section down below. If you found this video helpful, make sure you give it a like just hit the like button below the video. And if you want to stay up to date with the two new videos we post every single week on this channel, then make sure you subscribe to stay up to date with that. All that said thank you so much for watching. I’ll see you in the next video.