Interested in investing Short Term Rental

[Pavan K.]

I would like to grow my portfolio. Have one LTR purchased at end of 2024. Would like to add one STR . I understand location is KEY but how to track or find what works or what doesnot ? I don't have friends nor do I know people who have experience in real estate in my circle of friends .

Instate vs out of state .

Would like to self manage , so my first preference would be closer to  Minneapolis,may be couple of hours to drive? ( close to Twin cities is my current location ).

Looking for advice to start the analysis phase. Thank you!

[Jimmy Lieu]

Quote from @Pavan K.:

I would like to grow my portfolio. Have one LTR purchased at end of 2024. Would like to add one STR . I understand location is KEY but how to track or find what works or what doesnot ? I don't have friends nor do I know people who have experience in real estate in my circle of friends .

Instate vs out of state .

Would like to self manage , so my first preference would be closer to  Minneapolis,may be couple of hours to drive? ( close to Twin cities is my current location ).

Looking for advice to start the analysis phase. Thank you!

Welcome to BP, Pavan, and you're asking the right questions early. For STRs, location really is everything, and the best way to analyze what works is to look at actual performance data in similar properties, not just asking rents or hype—focus on nightly rates, seasonality, occupancy, local regulations, and competition density, then back into conservative numbers to see if it still works. Being close to Minneapolis makes sense if you want to self-manage your first STR, but just keep in mind that a lot of Midwest drive-to markets are getting crowded and cash flow can be tight once you factor in cleaning, furnishing, and slower off-seasons. If you're open to out-of-state long-term rentals as a complement, Columbus Ohio is a market worth studying because the macroeconomics are on fire here with strong population growth, job growth, and massive companies moving in like Intel, Amazon, Google, Honda, Microsoft, LG, and more. What makes Columbus stand out is that you can still buy solid single-family homes in the 120–180k range that hit the 1% rule and positive cash flow, while also benefiting from strong appreciation potential over the long term. A lot of investors pair something like an STR closer to home with cash-flowing LTRs in markets like Columbus to balance risk and stability. Happy to connect and answer any questions you have!