This Uptown townhouse sits just blocks away from the Bank of America stadium that features concerts, football, and soccer games frequently. Featuring 3 full bedrooms and 4 beds (one room has two queen beds), the location and size delivers forecasted higher Average Daily Rates.
Data provided by AirDNA has shown that 4-bedroom or larger homes can demand significantly higher Average Daily Rates (“ADRs”) than smaller homes relative to their incremental cost in the Charlotte, NC market. We believe this home was a great Mansion candidate given most Uptown Charlotte condo building prohibit AirBnB, this townhome in an AirBnB friendly HOA of which Mansion controls (we own two of the four units through affiliated parties) delivers outsized demand.
Historical data on comparable homes in the area show high variability in ADRs surrounding events, but average daily rates from third-party data provider AirDNA suggest an annual average (exclusive of cleaning fees and other added fees) of $629.
Debt terms were not available at rates that would increase potential returns, so no debt was added to this home. As a strategic refinancing candidate, we intend to add leverage if rates become favorable to investor returns and return proceeds net of additional cash reserves, to ensure debt coverage, to investors.
Note that any total estimated return is obtained through equity appreciation when the property is sold as well as recurring dividends from any positive cash flows after reserves and fees.
Estimates of annual rent collected are based on third-party data provider AirDNA projections and are not a guarantee of future revenues. Estimates of Operating, Finance, and Other Expenses (accounting, legal, tax, and AUM or others) are best guess estimates for this property based on the manager’s best guess estimates. These numbers are NOT a guarantee of future bookings or final expenses. Short term real estate rentals can be volatile and have the potential to go unbooked or generate substantially more or less revenue than estimated. Gross Yield is defined by taking the projected annual revenues divided by the offering total ($159,688 / $999,834). Dividends are not guaranteed and may fluctuate or not be paid at all given the volatility of single family short-term rentals.
Estimates of current home value and historical appreciation are provided by third-party data providers and are not a guarantee of future performance.The 4.4% increase from property purchase price to HouseCanary AVM Current Value is calculated as ($850,877 / $815,000) - 1. HouseCanary Agile Insights report with complete data can be found at: HouseCanary Report **Appreciation is not guaranteed and home values are variable based on market conditions. FRED Data is provided by the St Louis Federal Reserve and updated data can be found at: Charlotte DMA FRED Data. CAGR is calculated based on Q1-23 indexed value vs. Q1-13 and Q1-03 indexed values.
Estimated annualized return as shown on this page and in the calculator are initial based on the following inputs (some of which can be modified by your user inputs):
initialOfferingAmount = $999,961 (initial offering amount)
annualAppreciation = 0.075 (FHFA US Avg data since 2012)
annualCashFlowPct = 0.0576 (based on AirDNA & Mansion projections)
initialInvestment = Does not Affect Estimated Annualized Return Percentage
holdingPeriod = 7 (assumed average hold period by Manager)
annualCashFlowIncrease = 0.05 (projections by Manager based on )
dispositionExpensePct = 0.04 (approximation by Manager)
initialHomeValue = $850,877 (HouseCanary Valuation of Home)
furnishingValue = $60,000 (initial purchase price of furnishings/upfit)
cashReserves = $24,450 (initial cash reserves)
The projections or other information generated by the Mansion Return Analysis Calculator regarding the likelihood of various investment outcomes are hypothetical in nature, do not reflect actual investment results and are not guarantees of future results.The methodology of this calculator does not include any comparisons or considerations of alternative investment opportunities. The results may vary with each use and over time of this analysis tool given inputs or changes in methodology. This tool only considers home values and expenses related to this property on which the tool is displayed. To apply a similar approach to alternative criteria, we have published the math and code to the tool at Mansionlife.com/The-Maths Annualized Rate of Return shown is a basic formula that estimates cash flows based on assumptions and reflects cash flows on an annual basis. This should not be confused with true IRR calculations or GIPS standards for IRR calculations. See the Math at Mansionlife.com/The-Maths
As shown above, our calculations assume 4% property disposition costs at sale, an average annual net operating income increase of 5%, and an initial property value equal to the greater of the HouseCanary reported initial value or the purchase price + upfit investment. The calculator assumes furnishings value and cash reserves value stay fixed and are returned in full at the end of the holding period, this assumption may not account for depletion of cash reserves or depreciation of furnishings over time. The FHFA estimates provided are sourced from the latest quarterly report by the Federal Housing Finance Agency as of August 29, 2023. Read more