I am thinking about finding a property in the Miami area and making it a Short Term Rental. I know during this pandemic no one will be travelling to tourist cities and staying in short term rentals but I want to get a head start on things. My thought process behind this is hopefully after we pass this crisis, people will start to travel and vacation again. I am not the most experienced real estate investor out there. I own two residential rental homes that I manage alone and have been doing very well for me. If anyone has any insight on short term property in Miami area that can share their thoughts I would appreciate any of your inputs!
Hey Ali, I live in Miami and Ive seen many short term deals come my way. At the moment the short term industry is struggling as you already mentioned. If you actually were able to buy something right now you'd be looking at an undetermined timeline to when things go back to normal and if you're able to hold on for long enough I believe you should be in good position to get something at a discount right now.
Contractor · Miami, FL · Member since 2016 · 19 posts · 7 votes
6y
Be careful. There may be a prolonged downturn and as is usually the case with a recession and in general the economic conditions get worse, the first thing people cut is discretionary spending which includes travel. So if you do buy, be prepared to carry the costs if travel doesn't bounce back quickly. Also, you may have a situation where there is excess supply and too many providers of STR chasing too few customers, resulting in price discounts across the board. STRs are not my thing but if I were to do it, I would plan for low occupancy, and lower than previous rates. Remember, the market can remain irrational longer than you can remain solvent.