Duluth, MN / Superior, WI - STR guidance
Hello all! First time poster here. In the last 6 mo. I have acquired 3 properties, all 3 have signed 1 year leases and I just accepted a new job in a different state(2 hours away) increased W2 job by over $20k per year. My 3 rentals will be managed. Have 2 Mortgages and one HELOC I am trying to re-do after BRRRR'ing.
I am trying to purchase a property in the Duluth, MN/Superior, WI area. I am open but this will be my primary home and right now am not looking for a project, more of a plug and play option for the next year or so with the future plan being a rental either STR or LTR.
Anyone from the Duluth/Superior are that has knowledge in STR? I know Duluth is very strict and is very tricky as they only allow 60 permits in town but in certain townships it's ok. I would appreciate any advice or guidance!
I am open to ideas and thank you in advance for your ideas and thoughts!
Thanks!
#3 Short-Term & Vacation Rental Discussions Contributor
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#3 Short-Term & Vacation Rental Discussions Contributor
- Rental Property Investor
- Tennessee Florida
I guess my question is why bother at this point? Sounds like a pretty complicated plan with what ifs.
I did run grandmas marathon and it is FANTASTIC!
STR management fees (and utilities, paper goods, cleaning fees, extra repairs) generally wipe out any gained cashflow (vs. LTR). Unless it's a waterfront home I wouldn't spend the time on STR remotely. The added headache of local governments only makes this point more true.
I should mention I am a long-time BnBer and bunt myself out on the biz a few years ago so to speak.. so perhaps someone else will chime in with an optimistic outlook! The North Shore is fantastic, but the seasonality of the STR business makes things pretty tough.
@Matt Wignall
Welcome! Superior does not have a cap on short term rentals. But make sure you get all your numbers figured out, you make your money in the summers with short term rentals. I’m going to venture to guess and say you’re going to have to look for a property requiring some kind of value-add in order to get something where numbers make sense. You might have a little more luck if you go with long term rental to find an on-market property with not much needed for fixing up.
@Kurt Pauley any words of wisdom for our friend here? I swear I heard you had STR plans up there last year. I'm curious to hear about it myself if that's still the case.
