The Short-Term Rental Investment Model

This lesson defines the short-term rental investment model as a business model, not just a real estate purchase. Students learn how revenue, expenses, financing, compliance risk, operating intensity, and guest experience combine to determine whether an Airbnb-style property can produce durable returns.

The lesson focuses on the core economics: nightly rate, occupancy, gross revenue, operating expenses, debt service, cash flow, cash-on-cash return, and sensitivity testing. By the end, students can explain what makes a short-term rental deal attractive, identify the assumptions that matter most, and avoid judging a property by projected revenue alone.