The future of STRs in your local market?

104 Replies

The changing landscape of local politics means that a local commission or board can cap/cancel/ban STR's with minimal input from the community. We now make sure any new STR purchase also works long term, so if laws change it still cashflows. Now I think STR's as more of a bonus more than a basis.

Recently I've seen some of the best STR come via the pandemic, more specifically nurses and medical professionals. COVID has presented hospital staff (primarily nurses) with the opportunity to take on 3, 6, 9 month contracts is cities throughout the country. These medical professionals have been utilizing STR as a way to travel about the country accepting the best contracts available. These are mid to high earners who have an exact date range and can even extend their working contract in their current city which seems to have been a great bridge between short and long term. Additionally, being a tight knit community, current or former renters have provided references and leads for future STR renters. These hospital contracts will remain part of our future and could provide an opportunity for STR.

Between working remotely and a growing number millennials less likely to purchase a home than the generation before them, opportunities for STRs remain abundant. We've seen it from companies like Landing that allow members to join and rent an STR apartment in cities across the U.S. and live throughout the country for different parts of the year. As accessibility to travel continues to rise it will be interesting to see if millennials and others embrace the remote work lifestyle and begin living short term in larger numbers.

Originally posted by @Daniel Nobbs :

We recently purchased an RV Trailer as a STR. Listed on Airbnb, Outdoorsy and RV Share. This has been surprisingly profitable. This would be something to consider as a first time investor looking to increase cash reserves with minimal upfront capital.

Bought brand new with 7 year warranty:

Purchase Price: $33k

Down payment: $3k (tax and license)

Monthly payment: $265 + $45 insurance

Furnishings: $2k

Per night rental: $300

Average monthly income: $2.5k-$4k

Depending on the area and amount of campsites available in your immediate vicinity this could be an alternative option for (first time) investors looking to add cash flow for future ventures.

Just a different prospective or opinion other that buying property.

Hey Daniel! Very interesting, I've been considering doing the same.

Where do you have it parked?
 

Where i live in central pa I don't see much of a STR market. We don't have tourist attractions, we don't have a lot of traveling workers and we don't have amazing natural wonders. This is why i am looking into long distance STR but just have not taken the leap yet.

Originally posted by @Todd Goedeke :

@Chris Mury , have you ever considered buying / leasing 5 park model campers and getting 6 month seasonal leases in same area of one campground? Great for family groups and friend get togethers.

Hey Todd! I hadn't thought of that but that's pretty smart too. Love the unconventional cash flow ideas!

For Lubbock Texas

I think short-term rentals will take a back seat to flipping, this is because we appreciated 7% for three months in a row. However, with a strong medical industry, University, and growing population, short-term rentals will be a strategic method for investors.

Anchorage, Alaska has forever been the "boomer" go-to for vacation spots, however, we have seen unprecedented growth in both younger generations moving here, the military population growing, and significantly increased travel in the past 6 months. Barely brought up with investing, this is a true hidden gem for short-term vacation stays. 

Explosive growth. proCovid, averaged 1,000 clicks per listing/month, conversion rate of 3-4%.  post-Covid, average 4500 clicks per listing, 4.5x previous traffic, ADR is up 20-30%, occupancy at all-time highs, average length of stay from 3.2 to 6.2 days, even shut down for 2 months, 2021 was highest grossing year by A LOT.  43 current listings and growing.


Originally posted by @Kaylee Walterbach :

Yet another chance to be featured in the next issue of BiggerPockets Wealth Magazine... Short-term rental investors, it's your time to shine!

In 50 words or less, let us know: What do you think about the future of short-term rental investing in your market?

By responding here, you're allowing us to print your name and response, if chosen, in the next issue of the magazine. We're excited to hear what you have to say!

Originally posted by @Eric Giovannucci :

Anchorage, Alaska has forever been the "boomer" go-to for vacation spots, however, we have seen unprecedented growth in both younger generations moving here, the military population growing, and significantly increased travel in the past 6 months. Barely brought up with investing, this is a true hidden gem for short-term vacation stays. 

^Delete This^

STR owners with 1 and 2 bedrooms must be cognizant of hotel rates in their area not just other STR's. The hotels are you competition, be priced in manner that brings business to your door!

I have fears that STR is helping to add to the housing/rental bubble quite a bit. As the shortages in supply chains die down and prices come back down to earth, there needs to be supreme focus in building up housing supply. Right now it's a good problem for STR owners but could be unsustainable if there is not some rebalancing in my opinion.

Originally posted by @Daniel Nobbs :

We recently purchased an RV Trailer as a STR. Listed on Airbnb, Outdoorsy and RV Share. This has been surprisingly profitable. This would be something to consider as a first time investor looking to increase cash reserves with minimal upfront capital.

Bought brand new with 7 year warranty:

Purchase Price: $33k

Down payment: $3k (tax and license)

Monthly payment: $265 + $45 insurance

Furnishings: $2k

Per night rental: $300

Average monthly income: $2.5k-$4k

Depending on the area and amount of campsites available in your immediate vicinity this could be an alternative option for (first time) investors looking to add cash flow for future ventures.

Just a different prospective or opinion other that buying property.

Originally posted by @Daniel Nobbs :

We recently purchased an RV Trailer as a STR. Listed on Airbnb, Outdoorsy and RV Share. This has been surprisingly profitable. This would be something to consider as a first time investor looking to increase cash reserves with minimal upfront capital.

Bought brand new with 7 year warranty:

Purchase Price: $33k

Down payment: $3k (tax and license)

Monthly payment: $265 + $45 insurance

Furnishings: $2k

Per night rental: $300

Average monthly income: $2.5k-$4k

Depending on the area and amount of campsites available in your immediate vicinity this could be an alternative option for (first time) investors looking to add cash flow for future ventures.

Just a different prospective or opinion other that buying property.

 Do you keep the RV at your house and the client picks it up? Or, do you have it at campsite and they just show up?  

I have been looking at this path due to lower risk for losses.  Thank you

Despite regulatory headwinds, STRs in Hawaii continue to become even more lucrative. The pandemic expedited the shift to remote work and with it, a desire by well-paid, young tech workers to make a living outside of the standard tech hubs ie: San Francisco, Seattle, etc.

My new strategy for STR's is to buy in locations where people from a primary market, like Minneapolis, drive to for a weekend vacation or family get together. This means, Brainerd Lakes area, the North Shore, or even the Mississippi River Valley. Buying outside the primary market gives me less competition, and knowing these areas are frequented with local tourism (and lower gov' regulation) lends itself to STR success.

Hello, 

I'm located in Miami. I started about 3 years ago with my own apartment. I started with the arbitrage method. Renting and subleasing properties on Airbnb & other booking platforms. The market has been growing so fast that I am currently at 26 units on arbitrage and was able to buy 3 just from the profits I make renting and subleasing. Condos that allow short term rentals have rose in value by about 20-30% in the past two years and it doesn't look like its slowing down anytime soon. Miami during the summer is usually fairly slow at regular rates but we have been renting for a much higher than the past two years. Many people are shifting away from the whole hotel service and opting for fully equipped condos or homes.