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371 North Limestone, Lexington, KY, 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
$47,403
$3,950/mo · at 55% occupancy & $288/night
-$22,247
-$1,854/mo after costs & mortgage
Cap rate
2.7%
Cash-on-cash
-11.2%
DSCR
0.46
Confidence
Your assumptions
Revenue
$47,403/yr
Market avg: $47,403/yr · 55% occ · $288 ADR
Financing
$41,022/yr
Operating costs
$28,628/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 31 properties
$206–$513
Median $288
29%–83%
Median 55%
$31.7K–$86.3K
Median $45.7K
206–365
Median 287
This property · $47.4K
Comparable properties (31)
Cash flow potential Low · Appreciation potential Medium
299 days available · 170 days booked ·
365 days available · 181 days booked ·
364 days available · 166 days booked ·
365 days available · 227 days booked ·
206 days available · 133 days booked ·
348 days available · 265 days booked ·
238 days available · 183 days booked ·
287 days available · 198 days booked ·
282 days available · 175 days booked ·
287 days available · 197 days booked ·
301 days available · 144 days booked ·
326 days available · 134 days booked ·
283 days available · 206 days booked ·
256 days available · 191 days booked ·
296 days available · 107 days booked ·
263 days available · 139 days booked ·
261 days available · 142 days booked ·
338 days available · 219 days booked ·
237 days available · 174 days booked ·
320 days available · 109 days booked ·
206 days available · 153 days booked ·
267 days available · 181 days booked ·
253 days available · 125 days booked ·
301 days available · 134 days booked ·
308 days available · 135 days booked ·
318 days available · 129 days booked ·
265 days available · 145 days booked ·
231 days available · 173 days booked ·
256 days available · 74 days booked ·
287 days available · 77 days booked ·
224 days available · 118 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
~$169.2K
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
$313.6K
Break-even purchase price
Break-even is ~54% below the Zestimate, a discount sellers in Lexington rarely accept. Treat the number as a walk-away line rather than an opening offer.
DSCR cash-flow buyer
0.46
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 Lexington submarket.
For a buyer who materially participates and qualifies for the STR tax treatment.
$169.2K
Estimated first-year deduction · range $140.5K–$192.9K
Why this matters here
At a marginal bracket, this deduction can be worth $52.0K–$71.4K 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 -11.2%, DSCR 0.46, cash flow -$22,247/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $513,825 | -7.8% | 0.61 | Below break-even |
| -22% | $534,378 | -8.3% | 0.59 | Below break-even |
| -15% | $582,335 | -9.4% | 0.54 | Below break-even |
| -8% | $630,292 | -10.3% | 0.50 | Below break-even |
| Asking | $685,100 | -11.2% | 0.46 | Below break-even |
| +8% | $739,908 | -12.0% | 0.42 | Below break-even |
| +15% | $787,865 | -12.6% | 0.40 | Below break-even |
Break-even price
$313,556
~54% under Zestimate. Where this property reaches 1.0 DSCR and neutral cash flow.
Discount needed
−$371,544
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$6,013/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $3,950 · peaks at $5,129 in Oct
Annual avg 56% · peaks at 66% in Aug
−$1,854/mo after all expenses
Cash to close
Down payment, closing costs, and furnishing
$198,679
Return on cash:6%
DSCR below 1.0 — but you can still qualify
Your DSCR is 0.46 · 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
8.7%
over 5-yr hold, with tax shield
Equity multiple
1.5×
total proceeds vs. $198,679 invested
Projected value at exit
$874,380
year 5 · 5.0% annual appreciation
Tax shield contribution
+5.9 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $176,494 | $34,255 | $40,364 | $251,114 |
| Year 2 | $182,091 | $70,223 | $18,828 | $271,142 |
| Year 3 | $188,093 | $107,989 | -$1,986 | $294,096 |
| Year 4 | $194,528 | $147,643 | -$22,068 | $320,104 |
| Year 5 | $201,428 | $189,280 | -$41,406 | $349,303 |
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 Lexington agent who knows which properties actually cash flow — and which to avoid.
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This analysis is generated by Chalet's Airbnb Calculator
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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.
276 E Fourth St, Lexington, KY 40508, USA
4 bed 2 bath 10 guests
Revenue
$46,352/yr
Daily Rate
$246
Occupancy
0.6%
638 N Limestone, Lexington, KY 40508, USA
2 bed 2 bath 6 guests
Revenue
$37,113/yr
235 S Limestone, Lexington, KY 40508, USA
3 bed 2 bath 8 guests
Revenue
$36,320/yr
309 Transylvania Park, Lexington, KY 40508, USA
4 bed 3 bath 10 guests
Revenue
$69,370/yr
205 Simpson Ave apt 214, Lexington, KY 40504, USA
3 bed 2 bath 8 guests
Revenue
$37,865/yr
656 Sheridan Dr, Lexington, KY 40503, USA
2 bed 1 bath 6 guests
Revenue
$25,524/yr
Daily Rate
$292
Occupancy
0.5%
Daily Rate
$312
Occupancy
0.4%
Daily Rate
$434
Occupancy
0.6%
Daily Rate
$358
Occupancy
0.4%
Daily Rate
$153
Occupancy
0.7%