Watch for occupancy and ADR numbers that don't match real comps
A pro forma projecting occupancy or average daily rate meaningfully above what comparable short-term rentals in the same immediate market actually achieve is the single most common red flag -- and the easiest one to catch by pulling real comparable data instead of trusting the projection.
Be equally skeptical of a pro forma with no expense line for platform fees, cleaning turnover, supplies, or a vacancy allowance -- an income projection with unrealistically low or missing costs overstates net cash flow just as much as inflated revenue does.
Cross-check every number against verifiable, platform-sourced data
The fix for pro forma red flags isn't distrust for its own sake -- it's insisting on platform-generated revenue exports and real comparable-market data before accepting any projection at face value, whether it comes from a seller, an agent, or a listing description.
A done-for-you acquisition process builds every property's underwriting model from verifiable data rather than a seller's pro forma, which is exactly the discipline that catches an inflated projection before it becomes an expensive mistake.
BNB Accelerator's acquisitions team, led by Nick Korom, screens over 1,000 short-term rental listings a week and hand-delivers the roughly 2% that clear underwriting. Book a free consultation to see what a done-for-you short-term rental acquisition looks like for your situation.