Where to invest 120k

Question

With those with knowledge on STR, would 125k be a better investment in the Florida keys or the Smokey mountains market?

Dawn McComish · Answer

@Frank Rodriguez- I’m a realtor here in the keys and I work with investors.  My question would be - are you using the 120 as a down payment ?  If so - are you able to get a mortgage ?  How much down are they requiring ?  With 120k you could not buy anything outright and if you have to put 20% down - you are looking at a place under 500k and there is nothing here for that amount.  There are some good investments for around 1 million that have a nice ROI.  There are very few places that actually allow str - contrary to what most people think.  Happy to give you the specifics.

Dawn McComish · Answer

@Frank Rodriguez the keys are interesting for investing.  I’m a realtor here and you can count on the value of the property increasing - but we do not allow strs in most of the county - so the places that do allow it are much higher priced which lowers the ROI.

Frank Rodriguez · Answer

Thank you Jaron,

I’ve been looking at the Smokey mountains market as well, right now I’m looking at the keys, smokies, and st Augustine FL and figuring what strategy to follow

Jaron Walling · Answer

@Frank Rodriguez It's an investment property... most lenders require 20% down. If I'm sitting in your shoes with $200k cash, un-levered, I'm looking at other markets. We love vacationing in Pigeon Forge, and western NC. Some of those cities are over saturated with STR, but that's just my 2 cents from someone that visits. Went down last summer for the Grand National F-100 truck show.

Frank Rodriguez · Answer

My circumstances have changed a bit and right now I have close to 200k and I can realistically save around 25k every month. I’ve been looking at Marathon key since it allows weekly rentals in some areas. Which makes better ROI single family home or town home. Is a 10% vacation home down an option in the keys?

Taylor L. · Answer

I would be too concerned about weather events in the Keys

Chris Seveney · Answer

@Frank Rodriguez

If your option was only those two. I would do the keys, older little more stable, I think Smokey’s right now are over inflated and those who bought recently are gonna feel some pain in the coming years

Where to invest 120k

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