STR ROI Pro - Short-Term Rental Investment Analysis

Property Basics

State

City / Market

Property Structure

Affects financing, expenses, depreciation, and tax treatment.

Property Type

Purchase Price

Property Square Footage

Land Value %

Portion of price that's land (not depreciable). Select a state and city for an automatic estimate based on property type and market.

Local Tax Summary

Taxes and fees applicable to this property based on state and city selection. Property tax and state income tax are automatically factored into the calculations below.

Property Tax Rate —

State Income Tax —

Annual STR License/Permit —

Show TOT Details (Transient Occupancy Tax)

Toggle to view TOT breakdown

State TOT —

City/County TOT —

Total TOT Rate —

Est. Annual TOT Obligation (on gross revenue) —

What is the TOT (Transient Occupancy Tax)?

The TOT — also called hotel tax, lodging tax, or tourism tax — is a tax imposed by states and cities on short-term accommodations (typically stays under 30 days). It is the same tax charged when you book a hotel room.

Who pays it?

The guest pays the TOT. It is added as a separate line item on top of the nightly rate at the time of booking. As the property owner, you collect the TOT from the guest and remit it to the government. It is a pass-through — it is not your income and not your expense.

Who handles the collection and remittance?

OTA platforms (Airbnb, VRBO, Booking.com) automatically collect and remit the TOT in most U.S. jurisdictions. The tax is charged to the guest at checkout and paid directly to the state/county by the platform — the money never passes through your account.

Direct bookings (your own website): You are responsible for collecting the TOT from the guest, reporting it, and remitting it to the appropriate tax authority (monthly or quarterly depending on jurisdiction).

Condo Hotels: The hotel operator/association typically handles all TOT collection and remittance as part of the hotel's operations. You receive your share of revenue after all taxes have been handled.

Does TOT affect your ROI calculations?

No. Since the TOT is collected from the guest and remitted to the government, it does not reduce your gross revenue, NOI, or cash flow. It is shown here for informational purposes only so you understand the full tax landscape of your market. Your property tax, state income tax, and STR license fees are the taxes that directly impact your returns — and those are already factored into the calculations.

Rental Income

Average Daily Rate (ADR)

Pro tip: AirDNA Rentalizer is the industry-standard database used by DSCR lenders for income verification. Consider validating your ADR assumption at airdna.co

Annual Occupancy %

65%

Industry standard for DSCR underwriting: 65%

Average Stay Length (days)

Used to calculate number of turnovers/cleanings

Financing

Do you want to add financing?

No — Cash Purchase

Yes — Financed

DSCR Loan Program

Down Payment %

25%

Down Payment Amount

Interest Rate %

Loan Term

Loan Type

Amortizing

Interest Only

Loan Amount

$375,000

Monthly Payment

$2,505

Annual Debt Service

$30,060

Year 1 Interest

$25,640

Tax Benefits & Depreciation

Federal Tax Bracket

State Income Tax %

Annual Property Appreciation

4%

Cost Segregation & FF&E

Not included

Furniture, Fixtures & Equipment (FF&E)

FF&E Tier

FF&E is depreciated over 5 years (not 27.5). Higher furniture value = larger first-year tax deduction.

Estimated FF&E Value

$0

Based on property type and tier selected. This amount is separated from the building and depreciated at 5-year MACRS rate.

Cost Segregation Study

Data Source

5-Year Property %

15%

Personal property: appliances, carpets, decorative fixtures, cabinetry

7-Year Property %

5%

Office furniture, specialty equipment, exterior signage

15-Year Property %

10%

Land improvements: fencing, landscaping, driveways, pools, parking

Note: These percentages are estimates based on your property structure type. Actual percentages should be determined by a qualified cost segregation professional. FF&E value (above) is added on top of these allocations.

Bonus Depreciation %

100%

100% Bonus Depreciation is now PERMANENT under the One Big Beautiful Bill Act (signed July 4, 2025). Properties acquired after January 19, 2025 qualify for 100% first-year bonus depreciation on all cost-segregated components and FF&E. For properties acquired before that date, adjust the percentage accordingly (2024: 60%, 2023: 80%, 2022 and earlier: 100%).

Year 1 Dashboard

Net Operating Income (NOI)

$34,274

Before debt service and taxes

Cash Flow After Debt Service

$4,214

Annual after financing costs

Year 1 Tax Savings

$15,280

From depreciation & interest deductions

Net Year 1 Benefit

$19,494

Cash flow + tax savings

Key Investment Metrics

Cap Rate

6.85%

Cash-on-Cash Return

3.37%

DSCR

1.14x

Effective ROI (Year 1)

15.59%

Down Payment Recovery

12.22%

Operating Expense Ratio

42.44%

Breakeven Occupancy

61.4%

Breakeven ADR

$209

Year 1 Income Statement

Line Item	Amount
Gross Rental Revenue	$59,513
Hotel Operator Share	($0)
Less: OTA Commissions	($7,439)
Effective Gross Income	$52,074
Less: HOA	($0)
Less: Property Taxes	($9,500)
Less: Insurance	($2,500)
Less: Property Management	($0)
Less: Cleaning	($0)
Less: Utilities	($1,800)
Less: Repairs	($1,800)
Less: Supplies	($0)
Less: Replacement Reserve	($0)
Less: STR License	($0)
Less: Action Ledgers PMS	($900)
Total Operating Expenses	($16,400)
NET OPERATING INCOME (NOI)	$35,674
Less: Debt Service	($30,060)
Cash Flow Before Tax	$5,614
Depreciation Deduction	($12,000)
Mortgage Interest Deduction	($25,640)
Taxable Income (Loss)	($32,026)
Tax Savings / (Liability)	$7,686
NET CASH FLOW AFTER TAX	$13,300

5-Year Projection

Metric	Year 1	Year 2	Year 3	Year 4	Year 5
ADR	$250	$260	$271	$282	$293

5-Year Total Return

Total Net Cash Flow + Tax Savings

$95,400

Cumulative over 5 years

Total Property Appreciation

$121,665

At 4% annual growth

Total Equity Paydown

$71,235

Principal reduction on loan

TOTAL 5-YEAR RETURN

$288,300

All sources of return

ROI on Investment

230.6%

Annualized ROI

23.1%

Breakeven Analysis

What ADR do I need?

What occupancy do I need?

How much can I finance?

Minimum ADR for Positive Cash Flow

$209

To achieve positive cash flow at current occupancy of 65%, you need a minimum ADR of $209/night.

Minimum Occupancy for Positive Cash Flow

61.4%

To achieve positive cash flow at current ADR of $250, you need a minimum occupancy of 61.4%.

Maximum Financeable Amount

$485,000

To maintain positive cash flow (DSCR ≥ 1.0), you can finance up to this amount based on current NOI.