Long distance STR or LTR - Risk and reward
Hi All,
So we FINALLY got an offer accepted and just got through the inspection period on a beautiful 1945 sqft pool home in Cape Coral, in a very STR popular part of town. We got a great price on the home, it does need an extensive cosmetic remodel and also a new roof in the next 2-5 years.
We are planning to head down on closing to live in the house for 4-6 weeks to do most of the work ourselves. It as a bonus come hideously furnished but it does mean we can live there with our four kids during reno... Fun! ha ha.
When we get to the point of completion on the structure and pretty things we will need to decide whether to furnish or not for STR...
LTR - Small cash flow but seems more secure and less monthly expenses and hassle, we went into this deal because of cash flow AND appreciation potential. We should on closing, have equity since we got it under market value.
STR - Potential to cash flow great, still have the appreciation piece BUT risks seem higher with wear and tear, vacancies, having to hire our Property Managers etc. I want to believe the numbers we are seeing for occupancy and daily rates but also scared it won't happen for us.
I do really enjoy the hospitality aspect of STR and I do interior design for work, so the thought of furnishing for use buy others is enjoyable to me....
What would you do in the current climate?! Thanks all!