Rental Value and Future Oulook
Sample cash flows/rental values have been derived from existing AirBnB listings largely, with AirBnB being the number one player in this industry by far. The Florida area has been selected due its known popularity as a vacation destination. With a tropical climate, there is potential for renting the property year-round, not just in certain seasons. The founding team believes that rental value in the area will continue to grow for the foreseeable future. The main potential risk to this venture would be the rising of sea levels, causing mass flooding. At present it is quite clear that no investors are considering this, as they shouldn’t. It will be a number of decades before many homes along the Florida coast are affected by this climate change. Well before that time, an exit strategy will have been in place already.