Sandy Lee | Short-Term Rentals: How to Know If the Numbers Work

EPISODE 599: A short-term rental can look like a home run on a spreadsheet and still fail in real life. In today&#39;s market, building your strategy around best-case assumptions is one of the fastest ways to lose money.So what does it actually take to know if a deal is worth buying?In this episode of The Real Estate InvestHER Podcast, Liz sits down with Sandy Lee, a former corporate engineer who spent 30 years in engineering and construction and led the private equity arm of her firm. At 52, Sandy bought her first short-term rental, a four-bedroom ski condo in Steamboat, Colorado, for $1.3 million. That first property now cash flows around $5,000 a month. She went on to build a portfolio of short-term rentals across four states and retired two years later.Sandy&#39;s approach to evaluating deals comes directly from her private equity background: instead of analyzing a snapshot in time, she builds a financial model that looks out 10 to 15 years. She factors in cash flow, appreciation, and mortgage paydown to calculate a true annualized return she can compare directly to stock market performance. Her returns range from the low teens to the mid-30s percent, on an annualized basis.But the numbers are only part of the story. Sandy looks for what she calls the &#34;special sauce,&#34; something specific happening in a market over the next few years that will push appreciation and demand in the right direction. With Steamboat, it was Aspen&#39;s acquisition of the resort, plans for a new gondola, and tightening regulations that reduced supply. She bought when the deal was only breaking even, knowing what was coming.She also breaks down the operational side: the tech stack that cost her $125 a month and tripled her revenue, how she approaches regulations in every new market, and why she makes sure every property she buys would still cover its mortgage as a long-term rental, no matter what.In this episode, you&#39;ll learn:➡️ Why the numbers alone will not tell you if a deal is worth buying ➡️ How to spot the market &#34;special sauce&#34; that drives long-term growth ➡️ The private equity financial model Sandy uses to evaluate every deal ➡️ Why annualized return is the number that actually matters ➡️ How to think in 10 to 15-year windows instead of snapshots ➡️ The $125/month tech stack that tripled Sandy&#39;s revenue ➡️ How to research STR regulations before you commit to a marketIf you are evaluating your first short-term rental or looking to grow an existing portfolio, this episode will change how you look at every deal.Connect with Sandy: Website InstagramResources Mentioned In This Episode: STR Jumpstart Tech Stack Guide Sandy&#39;s free graphic breaking down the exact tech stack she uses to run her short-term rental portfolio, including required tools and optional add-ons. Available at strjumpstart.com or @strjumpstart on Instagram.PriceLabs Dynamic pricing software for short-term rentals that automatically adjusts your nightly rates based on market demand.Resources to Support Your Next Step: Ready to go beyond the episode and take action to build wealth, achieve financial freedom and live the life you want?InvestHER Assessment: Take this 5-minute quiz to determine where you are in your investment journey and receive a custom roadmap with practical steps you can start taking today.STRIVE Mentorship Program: Stop growing your portfolio alone. Start building wealth with the right community behind you. STRIVE is a strategic framework that helps women real estate investors build wealth with more clarity, structure, and support.<a href="https://d90bdsg67z0.typ