ALDOCHANDRA Start a build

Underwriting worksheet — No. 11

Rental arbitrage finder

The gap between what you pay a landlord and what the unit earns by the night — stated as a one-page memo. Bookings in, rent and operating costs out, and whatever spread is left over.

Basis of estimate
Thirty-day month, stabilised operations
Leading measure
Monthly arbitrage spread
Prepared by
Aldo Chandra, Philadelphia PA

Monthly arbitrage spread

--

--

Net nightly revenue less the rent you owe the landlord and every operating cost, per month. Everything below is the arithmetic behind that one number.

Supporting measureBase case
Annual spreadTwelve months at the assumptions below --
Break-even occupancy-- --
Profit marginOf net short-term revenue --
Furnishing payback-- --
01

Schedule of assumptions

Adjust any line; every figure on this page restates immediately.

Lease and unit

Line itemAssumption
$
$
%
$

One-time spend before the first booking clears.

Recorded on the worksheet for your own notes. Short-term rental rules differ by city; confirm the local ordinance before you sign a lease.

Operating costs, monthly

Line itemAssumption
$
$
$
%

Airbnb runs about 3 percent, VRBO about 5 percent.

$
%

Taken on net revenue after the platform keeps its cut. Leave at zero if you run it yourself.

02

Monthly flow

Per month, thirty nights, rounded to the dollar.

ItemAmount
Gross nightly revenue-- --
Less platform fees-- --
Total monthly expenses-- --
03

Where the money goes

Rent first, then the cost of running a furnished unit.

Cost linePer month
04

Read on this deal

Graded on margin and break-even occupancy together.

--

--

Key numberBase case
Monthly spread--
Break-even occupancy--
Profit margin--
Furnishing payback--
05

Short term against long term

The same unit, two exit strategies, per month.

Long-term sublet at market

Per month$0

--

Short-term rental

Per month--

--

06

Scenario range

Conservative trims occupancy and rate. Optimistic assumes you win both.

Scenario Occupancy Nightly rate Gross revenue Monthly spread Annual spread
07

Twelve-month seasonality

--

Month Season Gross revenue Monthly spread

This worksheet produces estimates for planning, not a lease approval. Nightly rates, occupancy and operating costs move with the market, and short-term rental rules differ by city, so verify the local ordinance and your lease terms before signing anything. It is not tax, legal, or investment advice.

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