Section 1: Financial Readiness Assessment

Financial Readiness — 5 Questions

Answer honestly. There are no right or wrong answers — only honest ones that help you determine your readiness level.

Q1: How much cash reserve do you have available for a new STR business?

• A. Less than PKR 100,000
• B. PKR 100,000 – 300,000
• C. PKR 300,000 – 600,000 ✓ (Minimum comfortable level)
• D. More than PKR 600,000

✅ Explanation: A single 1BR arbitrage property in a major Pakistani city requires PKR 275,000–450,000 in startup capital (advance rent + furnishing + setup). You need additional emergency reserve beyond this. Less than PKR 300,000 means you're undercapitalised for a standalone first property — consider co-hosting first.

Q2: How stable is your current income?

• A. No stable income — fully dependent on this business working
• B. Stable employment or income covering my basic expenses ✓
• C. Unstable, variable income
• D. I have significant savings but no regular income

✅ Explanation: Starting arbitrage while already financially stable dramatically reduces the pressure that leads to poor decisions. Your first 3–6 months will have irregular income as you build reviews and occupancy.

Q3: If your property earns nothing for 3 months, can you cover rent from savings?

• A. No — I can barely cover one month
• B. I can cover 1–2 months at a stretch
• C. Yes — I have 3+ months of rent in reserve ✓
• D. Yes — I have 6+ months emergency fund

✅ Explanation: A 3-month emergency fund is the minimum responsible reserve for any arbitrage operator. New listings typically take 2–4 months to reach consistent occupancy.

Q4: Do you have experience tracking income and expenses for a business?

• A. No, I've never tracked business finances
• B. Basic experience (spreadsheets, bank statements) ✓
• C. Good experience (accounting software, P&L statements)
• D. Professional accounting experience

Q5: Have you calculated your break-even occupancy for your target property?

• A. No, I haven't done this analysis yet
• B. I have a rough estimate
• C. Yes — I've calculated break-even nights per month ✓
• D. Yes — with sensitivity analysis at different occupancy rates

Financial Readiness Score

Count your C and D answers: 4–5 = Ready | 2–3 = Almost Ready | 0–1 = Start with Co-Hosting First