STR on a small lake or rental in small university town?

STR on a small lake or rental in small university town?

Member since 2019 · 6 posts · 0 votes

Hi, I'm looking at potential buying a small cottage on a small lake in Michigan (Baldwin/ Twin Lakes ect...) or doing rental property in a small university town (Big Rapids, MI). I don't know how to do market research to find out which would be best for my area. 

Thanks for any advice.

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  • Rental Property Investor · Los Angeles, CA · Member since 2016 · 172 posts · 122 votes
    7y

    @Stephanie Jaquish Hi Stephanie! First you need to look at your basic numbers. How much is the small cottage? How much is the rental rate? What are the property taxes? Etc.

    Biggerpockets has an excellent rental calculator that can help put some of these questions into better context. Compare multiple properties in the area. 

  • Member since 2019 · 6 posts · 0 votes
    7y

    Thanks for the advice.

  • St. Helena, CA · Member since 2016 · 147 posts · 59 votes
    7y

    Would the college town be a LTR? There could be a good difference in workload between the two. 

  • Investor · Forest Hills, NY · Member since 2014 · 101 posts · 52 votes
    7y

    For STR, you can check Airdna.co or mashvisor to see how much revenue it can generate. You can also check out similar properties and see what they're charging and how booked they are.

    With the long term rental property, you can check rentometer.com or Zillow rental estimate to estimate how much rent you could potentially get.  You can also contact a property manager to get their assessment as to rental demand and rental rate.

  • Member since 2019 · 6 posts · 0 votes
    7y

    Thanks for the websites and advice. I'll check those out.

  • Member since 2019 · 6 posts · 0 votes
    7y

    The college town would probably be a long term rental. Don't know how much demand there'd be for a STR there. My other concern would be that college students may not take summer class and go back home for the summer.

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