Innisfree

Business Overview

Innisfree is seeking $400,000 in funding to launch its short-term rental business. Some of this funding will go towards vacating and securing the rental property, renovating the cabin, and cleaning, furnishing, and stocking the unit with essentials and supplies. The rest of the funding will go towards the construction of two additional units on the property, maximizing profits.

As soon as the short-term rental is operational, we are expecting to be able to make annual distributions of 9.7% with additional bonus distributions when cash flow and reserves allow.

Market Analysis

According to our sources, short-term rentals in Wrightwood during the winter season are usually fully booked and prices for the first unit of Innisfree could be $400 - $500 per night, meaning that at least $30,000 of profit in 3 months is a realistic estimate. While the rest of the year is usually slower, active marketing and strategic pricing will maximize profits during this period.

Hospitable.com estimates rental rates in our area at $270/night with a 55% occupation rate, which would mean $54,202/year. Our sources indicate that even these numbers are conservative, and targeted, creative marketing would yield around $57,900/year. The first additional unit will bring the projected income up to $100,400 in the second year, which is an 18% return on investment.