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25020 Perdido Beach Boulevard, Orange Beach, AL, USA
Priced too high to cash-flow with a loan — an equity or tax play, not income.
Investment potential
Your scenario · adjust the levers below or open advanced settings to see how returns change
$75,737
$6,311/mo · at 72% occupancy & $428/night
-$9,818
-$818/mo after costs & mortgage
Cap rate
4.8%
Cash-on-cash
-4.2%
DSCR
0.80
Confidence
Your assumptions
Revenue
$75,737/yr
Market avg: $75,737/yr · 72% occ · $428 ADR
Financing
$48,944/yr
Operating costs
$36,611/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 50 properties
$292–$589
Median $428
38%–95%
Median 72%
$47.4K–$130.5K
Median $74.9K
154–365
Median 290
This property · $75.7K
Comparable properties (50)
Cash flow potential Low · Appreciation potential Medium
365 days available · 257 days booked ·
291 days available · 232 days booked ·
249 days available · 208 days booked ·
325 days available · 274 days booked ·
301 days available · 220 days booked ·
326 days available · 213 days booked ·
272 days available · 150 days booked ·
315 days available · 194 days booked ·
357 days available · 177 days booked ·
261 days available · 201 days booked ·
365 days available · 226 days booked ·
271 days available · 219 days booked ·
301 days available · 206 days booked ·
365 days available · 222 days booked ·
249 days available · 165 days booked ·
307 days available · 165 days booked ·
274 days available · 202 days booked ·
365 days available · 244 days booked ·
345 days available · 227 days booked ·
259 days available · 186 days booked ·
302 days available · 181 days booked ·
319 days available · 236 days booked ·
271 days available · 139 days booked ·
334 days available · 190 days booked ·
311 days available · 174 days booked ·
241 days available · 171 days booked ·
288 days available · 147 days booked ·
301 days available · 170 days booked ·
310 days available · 184 days booked ·
218 days available · 180 days booked ·
234 days available · 170 days booked ·
210 days available · 145 days booked ·
306 days available · 150 days booked ·
341 days available · 195 days booked ·
277 days available · 150 days booked ·
259 days available · 129 days booked ·
265 days available · 144 days booked ·
200 days available · 155 days booked ·
365 days available · 186 days booked ·
213 days available · 156 days booked ·
154 days available · 125 days booked ·
269 days available · 104 days booked ·
286 days available · 138 days booked ·
212 days available · 142 days booked ·
365 days available · 146 days booked ·
359 days available · 139 days booked ·
206 days available · 131 days booked ·
183 days available · 123 days booked ·
225 days available · 107 days booked ·
365 days available · 168 days booked ·
Revenue and occupancy reflect Chalet's modeled estimates from observed booking activity for comparable active listings. Individual results vary with management, seasonality, and pricing.
Who this property is for
The same property is a great buy for one investor and a trap for another. Here's the honest read.
1031 / high-equity buyer
~$201.9K
Year-1 tax shield
Buying with cash or low leverage removes the debt-coverage problem entirely, so the thesis rests on appreciation plus a large first-year write-off. At roughly 25% of purchase price, the shield is substantial enough to carry the deal on its own.
Price-disciplined buyer
$653.4K
Break-even purchase price
Break-even is ~20% below the Zestimate, a discount sellers in Orange Beach rarely accept. Treat the number as a walk-away line rather than an opening offer.
DSCR cash-flow buyer
0.80
DSCR at asking
At asking price the property doesn't cover its own debt service, so it won't qualify for DSCR financing as modeled. If you need cash flow from day one, look at a mid-term-rental fallback or a different Orange Beach submarket.
For a buyer who materially participates and qualifies for the STR tax treatment.
$201.9K
Estimated first-year deduction · range $167.6K–$230.2K
Why this matters here
At a marginal bracket, this deduction can be worth $62.0K–$85.2K in estimated federal tax saved.
This only applies if you meet the IRS material-participation tests for short-term rentals and are not using a full-service property manager.
Estimate, subject to CPA review. Cost-segregation percentages shown here are illustrative and depend on an actual study of the property.
Some states do not conform to federal bonus depreciation, so your state may not allow the same first-year treatment shown above.
Chalet can introduce a cost-segregation partner — this is not tax, legal, or financial advice.
How cash-on-cash return moves with purchase price. The marked line is break-even (1.0 DSCR).
At this price: cash-on-cash -4.2%, DSCR 0.80, cash flow -$9,818/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $613,050 | 1.3% | 1.07 | Positive |
| -22% | $637,572 | 0.5% | 1.02 | Positive |
| -15% | $694,790 | -1.2% | 0.94 | Below break-even |
| -8% | $752,008 | -2.7% | 0.87 | Below break-even |
| Asking | $817,400 | -4.2% | 0.80 | Below break-even |
| +8% | $882,792 | -5.5% | 0.74 | Below break-even |
| +15% | $940,010 | -6.5% | 0.70 | Below break-even |
Break-even price
$653,432
~20% under Zestimate. Where this property reaches 1.0 DSCR and neutral cash flow.
Discount needed
−$163,968
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$7,174/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $6,312 · peaks at $10,236 in Jul
Annual avg 64% · peaks at 85% in Jul
−$818/mo after all expenses
Cash to close
Down payment, closing costs, and furnishing
$237,046
Return on cash:13.1%
DSCR below 1.0 — but you can still qualify
Your DSCR is 0.8 · lenders typically require 1.0+.
Get matched with 2–3 vetted STR lenders, free.
What the deal returns over the hold — including the tax shield, which is the whole point for an appreciation buyer.
Levered IRR
15.3%
over 5-yr hold, with tax shield
Equity multiple
1.9×
total proceeds vs. $237,046 invested
Projected value at exit
$1,043,233
year 5 · 5.0% annual appreciation
Tax shield contribution
+6.7 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $210,577 | $40,870 | $64,884 | $316,332 |
| Year 2 | $217,255 | $83,784 | $56,202 | $357,241 |
| Year 3 | $224,415 | $128,843 | $48,673 | $401,931 |
| Year 4 | $232,093 | $176,155 | $42,315 | $450,563 |
| Year 5 | $240,326 | $225,833 | $37,144 | $503,303 |
Projection, not a promise.
Assumes 5.0% annual appreciation, 1.5% rent growth (operating costs held flat), and that the property qualifies for short-term-rental tax treatment. The year-1 depreciation shield depends on a real cost-segregation study and your tax situation — consult a CPA.
Appreciation is the dominant driver of this return. When cash flow is negative, the deal depends on the property gaining value — it is not paying for itself from income.
Appreciation, rent growth, and financing rates are editable under Edit financials.
STR deals turn on local rules and demand that a generalist agent misses. Chalet matches you with a vetted Orange Beach agent who knows which properties actually cash flow — and which to avoid.
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Real Estate Investment Analysis & Market Insights
Disclaimer. This page and the data presented are for informational purposes only. The information provided should not be construed as financial, legal, or investment advice. Market conditions can change rapidly, and past performance does not guarantee future results. Always consult with qualified professionals before making investment decisions.
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