First Investment Advice – STR vs LTR
I have $100k to invest and live in California. I'm planning to buy my first out-of-state rental and would appreciate some advice.
I'm deciding between:
- * A long-term rental (LTR) in a growing market (population growth, good school district, low crime, median home prices under $500k)
- * A short-term rental (STR) in a vacation market (e.g., Gatlinburg, Broken Bow, Myrtle Beach, Bronson, under $500k)
My goal is to scale and buy another property (STR or LTR) within 2 years.
Here are the main factors I'm weighing:
- STR pros: Potential for higher cash flow, can offset W2 income with bonus depreciation, write off all expenses against W2. STR Loophole allows me to achieve my goal faster.
- LTR pros: More passive, long-term stability.
For a first-time investor, which path would you take and why? Any markets you'd recommend?
Appreciate any insights!