Updated about 4 years ago on . Most recent reply
Affordable Great Lakes STR
Hey there,
With RE prices across seemingly the whole country still going up and up, it's become harder to find affordable STR units with solid returns. From CA to FL to GA to TX to Smokies, etc, we've seen ATH prices. Which leads me to the Great Lakes areas.
There seem like many great, affordable STR markets in the Great Lakes region. Obviously the returns will be less than a highly competitive market like Joshua Tree, Smokies, etc. But the GL area offers affordable options and seem like a lower risk hedge against crazy prices elsewhere.
I have two questions for those who are familiar with Great Lakes STR Markets:
1. Which markets do you see as the best going into Spring/Summer 2022? I've looked from Two Harbors, MN to Michigan City, IN to Traverse City, MI. There are so many options that I've got some Analysis Paralysis. I'd like to be close to a lake and preferably within 2-3 hours of a large city (Chicago, Detroit, Milwaukee, MLPS). Other than that, totally open.
2. How sharp is the seasonal drop-off? Most occupancy forecasts I've ran are ~60-70% annual occupancy which is still pretty great. However, I want to be aware of that aspect of these markets.
Thank you in advance!