A measure of the profitability of a short-term rental property, calculated as the annual rental income divided by the property value, expressed as a percentage.
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Glossary Term: Real Estate Investment
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The process of researching and identifying suitable properties for short-term rental investments based on factors like location, market demand, and profitability.
Strategically investing in properties and locations that align with the preferences and booking patterns of the defined target market to maximize returns.
Evaluating the financial viability of a potential short-term rental property by considering factors like purchase price, operating expenses, and projected revenue.
The evaluation of a short-term rental property’s financial performance, considering factors like purchase price, operating expenses, rental income, and market trends.
Using income generated from short-term rentals to cover part or all of the mortgage payments on a property, potentially making it a profitable investment.
A property owner eager to sell quickly, potentially offering a discounted price, which could be an opportunity for investors looking to acquire short-term rentals.
A building with multiple separate dwelling units, such as an apartment complex or condo building, offering potential for higher rental income in the short-term rental market.
A potential tax benefit for short-term rental owners, allowing them to deduct mortgage interest paid on properties used for rental purposes, subject to specific IRS regulations.
The upfront costs associated with acquiring and setting up a short-term rental property, including purchase price, renovations, furnishings, and initial marketing expenses.
The practice of leveraging underutilized assets, such as a spare room or an entire property, to generate income through short-term rentals.
Evaluating the financial viability of a property as a short-term rental investment, considering factors like occupancy rates, expenses, and potential income.