Investing in St. Augustine, FL?

Question

Hi BP!

How is the St. Augustine, FL market doing?

Is anyone currently investing in this market or have invested before? What were your exit strategies? I found a home on the market for sale that in my opinion, would do really well on AirBnB. I'm just not too familiar with the market in general.

Would love to hear any feedback! Thank you.

Alyssa Alayvilla · Answer

Hi Chris,

Thank you so much for your valuable insight!

Chris Mury · Answer

Hey Alyssa!

The St. Augustine STR market is still doing fine for some property owners although we're far from the peak demand of 2020/2021. Owners of well-marketed/maintained/managed properties are still finding solid returns compared to LTR. We (along with most STR markets) have experienced a large influx of supply in the last couple of years which is hurting occupancy/nightly rates as a whole. Those owners who want to treat STRs as "passive income" and not manage with a hospitality mindset are falling behind. I'd also encourage you to seek a property that has a unique offering to stand out (i.e. don't buy the cookie-cutter 3/2). Qualities like location (near the beach or in the heart of downtown), having a pool, a large yard that you can build out with outdoor activities, or unique bedroom count (I'd go very small or very large) will increase your odds of success.

Good luck with your search!

Chris