I want to start purchasing short term rentals and have a long term rental right now. It has a lot of equity in it and if I sold it would give me the funds to start to invest in a short term rental in a better area and hopefully start growing my investment properties. Should I hold on to that property? Or sell it? I thought about holding on to it and pay it off so it is retirement income. Thank you for your input:)
Why not have the best of both worlds? Keep the LTR and use the equity to purchase STRs. I have 8 properties (6 STRs and 2 LTRs) and I like have the diversification. Can you pivot your long term rental into an STR? I think its all about options and it sounds like you have several!
Yes, yes, and yes! I have been involved with both the vacation rental management and second home real estate since 2006 here in Galveston. I've had a great pleasure in watching the two industries cone together! You can actually enjoy your property on your vacations vs. dealing with BS from tenants. Once you go STR investment, you never will go back to the traditional long term strategy!
Yes, yes, and yes! I have been involved with both the vacation rental management and second home real estate since 2006 here in Galveston. I've had a great pleasure in watching the two industries cone together! You can actually enjoy your property on your vacations vs. dealing with BS from tenants. Once you go STR investment, you never will go back to the traditional long term strategy!
Interesting, we have had the opposite experience. We owned LTR for years and screened tenants carefully, so have had very few problems. We go months without ever even talking to tenants. A year ago we got into STR rentals and overall it has been fine, but the sheer number of guests means there are some bad apples. We have had people leave a mess, throw parties, bring in dogs unauthorized, cancel last minute, and leave bad reviews for no reason. The other challenge is dealing with cleaning or repairs on tight timelines. I am sure it is easier if you manage a bunch of units and have large cleaning crews, but dealing with one or two properties can be difficult. Even just managing communications requires you to be attentive all the time. LTR we only get calls during emergencies, not asking us "how far is it from X" or "do you have a frying pan" or other basic questions. Bottom line, STR are not passive, which is a huge adjustment when you are used to a hands-off LTR business. I understand the revenue aspect on STR is higher, but not without work. You can hire a property manager, but that takes 25% off the top.
Why not have the best of both worlds? Keep the LTR and use the equity to purchase STRs. I have 8 properties (6 STRs and 2 LTRs) and I like have the diversification. Can you pivot your long term rental into an STR? I think its all about options and it sounds like you have several!
I would consider diversifying so you can see what works best for you! Ever since I had gotten into the STR market I haven't thought about having any LTRs! Best of luck, and hope all goes well for you!
If you ever need anything, don't hesitate to reach out!
Yes, pull out some $$ and buy one STR...see if ya like it. If yes, then do it again. If you love it then maybe dump the LTR....but we don't know enough facts to decide on that one.