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561 E Beach Blvd, Gulf Shores, AL 36542, USA
Airbnb investment analysis
3 beds·2 baths·8 guests
Local Gulf Shores STR agent
Lock down this Gulf Shores deal
A local agent can surface better STR-friendly properties nearby — or validate this one with on-the-ground data.
Connect with Gulf Shores STR RealtorInvestment potential
Your scenario · adjust the levers below or open advanced settings to see how returns change
$74,661
$6,222/mo
Projected gross rental income at your assumed occupancy rate and nightly rate. Net of cleaning fees.
$10,622
$885/mo
After operating costs and mortgage.
Cap rate
7.8%
Cash-on-cash
1.8%
NOI
$45,710
Revenue
$74,661/yr
Market avg: $74,661/yr · 78% occ · $382 ADR
Financing
$35,088/yr
Operating costs
$28,951/yr
How this property compares to similar short-term rentals nearby.
Comparable set · 10 properties
$270–$502
Median $362
53%–96%
Median 78%
$55.6K–$93.8K
Median $78.1K
233–405
Median 305
This property · $74.7K
Comparable properties (10)
Cash flow potential Medium · Appreciation potential Medium
318 days available · 202 days booked ·
405 days available · 273 days booked ·
266 days available · 179 days booked ·
279 days available · 212 days booked ·
310 days available · 195 days booked ·
367 days available · 220 days booked ·
303 days available · 148 days booked ·
307 days available · 208 days booked ·
233 days available · 198 days booked ·
255 days available · 228 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
~$144.7K
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.
DSCR cash-flow buyer
1.30
DSCR at asking
At asking price the property clears the 1.20 DSCR most lenders require, so it should qualify for DSCR financing and cover its own debt service from day one. This is the buyer this deal is built for.
Price-disciplined buyer
—
Break-even purchase price
Even a deep discount doesn't get this deal to break even within a realistic range, so there's no price anchor to negotiate toward. A price-disciplined buyer should pass unless the revenue assumptions change.
For a buyer who materially participates and qualifies for the STR tax treatment.
$144.7K
Estimated first-year deduction · range $120.1K–$165.0K
Why this matters here
At a marginal bracket, this deduction can be worth $44.5K–$61.1K 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 +1.4%, DSCR 1.30, cash flow $10,622/yr
| Price vs asking | Price | Cash-on-cash | DSCR | Band |
|---|---|---|---|---|
| -25% | $439,500 | 3.4% | 1.74 | Positive |
| -22% | $457,080 | 3.1% | 1.67 | Positive |
| -15% | $498,100 | 2.5% | 1.53 | Positive |
| -8% | $539,120 | 1.9% | 1.42 | Positive |
| Asking | $586,000 | 1.4% | 1.30 | Positive |
| +8% | $632,880 | 1.0% | 1.21 | Positive |
| +15% | $673,900 | 0.6% | 1.13 | Positive |
Break-even price
Out of range
This deal does not reach break-even within ±25% of asking.
Discount needed
—
The gap between asking and the price a cash-flow buyer can underwrite.
If refi to 5.5% in 24 mo
+$5,143/yr
Illustrative cash-flow improvement at asking price if rates fall. Planning figure, not a forecast.
Annual avg $6,222 · peaks at $8,862 in May
Annual avg 69% · peaks at 89% in Feb
Before mortgage · 61% margin
Cash to close
$169,940
Down payment, closing costs, and furnishing
You qualify — get matched with an STR lender
STR-friendly lenders often use gross revenue to qualify — even below 1.0 DSCR. Get matched with 2–3 vetted lenders, free.
DSCR ratio
1.3
What the deal returns over the hold — including the tax shield, which is the whole point for an appreciation buyer.
Levered IRR
25.2%
over 5-yr hold, with tax shield
Equity multiple
2.4×
total proceeds vs. $169,940 invested
Projected value at exit
$747,901
year 5 · 5.0% annual appreciation
Tax shield contribution
+7.9 pts
of IRR comes from year-1 depreciation
| Year | Equity | Appreciation | Cumulative cash flow | Total value |
|---|---|---|---|---|
| Year 1 | $150,964 | $29,300 | $64,177 | $244,441 |
| Year 2 | $155,752 | $60,065 | $75,918 | $291,735 |
| Year 3 | $160,885 | $92,368 | $88,797 | $342,050 |
| Year 4 | $166,389 | $126,287 | $102,829 | $395,506 |
| Year 5 | $172,292 | $161,901 | $118,033 | $452,226 |
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 Gulf Shores 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.