Evaluating an STR Property
Learn how BNB Accelerator screens properties, compares deals and evaluates projected cash flow and cash-on-cash returns.
Practical answers for buying and launching a short-term rental with BNB Accelerator. Updated September 30, 2026.
How does the BNB Accelerator team decide whether a property is worth pursuing?
We conduct extensive underwriting, estimating rental revenue, operating expenses, financing costs and the upfront investment needed to launch. We also check STR compliance, including applicable local rules and HOA restrictions. We use that analysis to assess whether the property fits your budget and return goals.
What are the biggest reasons you would tell me not to move forward with a property?
The biggest reasons are STR restrictions or financials that do not meet our targets. We generally look for projected cash-on-cash returns of at least 10%. We may also recommend passing if repairs, setup costs or other risks make the deal unattractive. Projected returns depend on the assumptions in the pro forma and are not guaranteed.
How should I compare two properties that both look like good deals?
Start with projected cash-on-cash return, then compare annual cash flow and total cash needed to purchase and launch each property. Make sure both analyses use comparable financing and operating assumptions.
Choose the strongest available options within your buy box. If both are worth pursuing, we can coordinate offers on both with your agent, making sure the offer strategy fits your ability and willingness to purchase.
How much weight should I put on location vs. projected revenue vs. purchase price?
Evaluate them together through the full financial model. A lower purchase price does not necessarily mean a better deal, and higher projected revenue may come with higher costs.
Focus on the best available opportunity within your budget and buy box. Stay open to different locations, and avoid stretching your finances just to enter a preferred market.
How important are bedroom count, amenities, views and design potential when evaluating a deal?
They are central to our strategy, which focuses on large, luxury properties for group travel. We look for usable sleeping capacity, comfortable gathering spaces, compelling amenities and strong design potential.
Views and distinctive features can strengthen the guest experience. The goal is to build the strongest amenity and design package the property, budget and projected returns can support.
If I find a property myself, what information should I send the team so it can be evaluated quickly?
Send us the listing link or address, asking price and any information you have about bedrooms, bathrooms, amenities, condition, HOA restrictions or rental history. Flag anything that may not be clear from the listing, such as needed renovations or an offer deadline. We will evaluate it and build a pro forma for you.
When you say a property is a 'good deal,' what metrics are you looking at?
Our primary metrics are projected cash-on-cash return (CoC) and cash flow.
Cash-on-cash return compares projected annual pre-tax cash flow with the total cash you invest, including the down payment, closing costs, renovations, furnishings and launch costs. Cash flow is what remains after operating expenses and debt payments, with the reserves specified in the model.
We generally target at least 10% projected CoC, alongside positive cash flow, STR compliance and an upfront investment that fits your budget.
Plan your next STR purchase
Discuss your budget, target markets and timeline with our acquisition team.