Best Properties for Short Term/Vacation Rentals

[Joshua Randall]

Hello Bigger Pockets family!

I'm curious for those that have invested in short term/vacation rentals, what the best properties you all have found work the best. I can see that there are obvious pros and cons to all of them. But I want to hear from people that are doing it and what you have experienced is the best route and why! 

With Single Family I can see the benefit of equity and appreciation, multi-family a larger cashflow, condos and apartments are more likely to have better location and a higher earning potential. Let me know what you all have seen and are doing!

[Karl McGarvey]

Hello!

This is a super loaded question with a lot of "it depends" in the answers. The biggest being, real estate even STR is super regional so the market gets a vote on what is going to be successful. In Galveston I am able to make 30% ROI on a 500sqft 1 bedroom condo even with HOA fees, but that may be completely different elsewhere. We like condos because of the reduction of CAPEX and Maintenance items, but the versatility of SFH or multifamily also has its advantages. We actually just bought a two unit property that will have one LTR to cover our bills while the second unit is STR/MTR for pure cashflow.

When exploring this topic, I would center in on a market you are interested in and evaluate how each property type performs within that market.