Would You Buy This FL STR Generating $50K Gross? Curious on How You'd Underwrite It

Question

Would You Buy This Florida STR Generating $50K Gross? Curious on How Others Would Underwrite It

Hey BP community — I’ve been running a short-term rental in Fort Pierce, FL (Treasure Coast) for the past year, and we’re considering transitioning out of it. I’d love to get some outside perspectives on how others would underwrite this kind of deal in today’s market.

Here’s the high-level overview:

• 3BR / 2BA single-family home with private pool
• Fully renovated and furnished
• STR licensed and professionally managed
• Gross income ~$50K/year (AirDNA projection aligns)
• 90%+ occupancy YTD
• Located 10 minutes from the beach, close to downtown
• Asking $314,900 (below 2024 appraisal)

3BR / 2BA single-family home with private pool

Fully renovated and furnished

STR licensed and professionally managed

Gross income ~$50K/year (AirDNA projection aligns)

90%+ occupancy YTD

Located 10 minutes from the beach, close to downtown

Asking $314,900 (below 2024 appraisal)

Expenses are pretty typical — utilities, pool service, cleaning, and optional PM (or self-manage). I can share more detailed numbers if it’s helpful.

If you came across this deal, what would your return expectations be? Any red flags I might be missing? Always appreciate learning from this group.

Jorge Fernandez · Answer

Hey Dominic, I appreciate your comments and you're right on point.  It nets about $25K which I think is still quite good, given that it's turnkey.

Dominic Mazzarella · Answer

Sounds like a solid property on paper. A 3/2 with a private pool that’s fully renovated and hitting 90% occupancy is definitely attractive. At a $315K price point with $50K gross and professional management already in place, I’d definitely take a closer look.

That said, I'd want to dig into net income after all expenses, especially things like insurance (which can be brutal in Florida), taxes, and any HOA or local STR regulations that might be changing. I’d also factor in some reserves for capital expenses since a pool adds some long-term maintenance costs.

If it nets at least 25–30K, that's a respectable return in this market, especially given how turnkey it is. But if net drops below 20K, the numbers might be a little tight for the risk.Just my 2 cents.