ANY STR FRIENDLY AREAS?

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Michael Hyun
Investor · San Jose CA · Member since 2018 · 114 posts · 73 votes
4y

My personal stance on this is that money is always made in places where other investors are scared to go. This is just my take, but you can't hold STR to the same standard as LTR - just because a STR does well its first year, doesn't mean it will do well the second year. Joshua Tree increased in STR unit count by 50% in one year. Demand didn't grow by 50%. This is because its a STR friendly area and investors flocked to it like crazy.

But in markets like Henderson, NV - Airbnb is strictly regulated (but still legal). Each airbnb needs to be 1000 ft from the next Airbnb. This severely limits the number of Airbnbs in the city and caps your competition. This ensures long term success, not just a few years.

Currently, I'm asking questions like "how can I get into this market" rather than "which markets allow me to do this".

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  • Melissa Wesling
    Investor · Chicago, IL · Member since 2020 · 148 posts · 97 votes
    4y

    Hi Matthew! Have you looked at the Florida markets?  I have vacation rental properties in MI but recently expanded to the FL panhandle because we found it feels much more rental friendly there.  Of course some of the beach markets have a 30 day minimum, so it is important to pay attention to the regulations and zoning.  Typically you can find information about short-term rental regulations on a city government website.  
    Additionally, the top markets clients I work with invested in last year were: Kissimmee, FL; Destin, FL; Cape Coral, FL; Branson, MO; and Poconos, PA.  This year so far our top markets seem to be Western NC, Carolina beaches, and Destin/PCB.
    Reach out if you want to talk more! 

    0Reply
  • Matthew Pride
    OP
    Rental Property Investor · Las Vegas, NV · Member since 2020 · 9 posts · 9 votes
    4y

    @John Underwood Thank you for this insight, I will definitely look into these cities!

    0Reply
  • Matthew Pride
    OP
    Rental Property Investor · Las Vegas, NV · Member since 2020 · 9 posts · 9 votes
    4y

    @Steven Wilson Great Read! Thanks for this! Columbus is now on my radar!

    2Reply
  • Mindy JensenPro Member
    BiggerPockets Money Podcast Host · Longmont, CO · Member since 2014 · 7k+ posts · 10k+ votes
    4y
    Quote from @Michael Hyun:

    My personal stance on this is that money is always made in places where other investors are scared to go. This is just my take, but you can't hold STR to the same standard as LTR - just because a STR does well its first year, doesn't mean it will do well the second year. Joshua Tree increased in STR unit count by 50% in one year. Demand didn't grow by 50%. This is because its a STR friendly area and investors flocked to it like crazy.

    But in markets like Henderson, NV - Airbnb is strictly regulated (but still legal). Each airbnb needs to be 1000 ft from the next Airbnb. This severely limits the number of Airbnbs in the city and caps your competition. This ensures long term success, not just a few years.

    Currently, I'm asking questions like "how can I get into this market" rather than "which markets allow me to do this".


    Generally speaking, this is great advice, asking "How can I get into this market" but I think with STR, the better question is "Which markets have enacted rules around STR and allow for it?" The reason being, if your city has not yet made rules governing STR, they probably will soon - and those who haven't made them yet tend to make them overly strict or outright ban.

    A great place to start looking for STR is vacation destinations - although certainly not the only place to consider. College towns are also great for STR. Have you considered Medium Term Rentals? Furnished rentals with longer stays (minimum 30 days) to maximize monthly rates while complying with restrictive STR rules. I think 40% of Airbnb rentals are now 30 days or longer.

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y
    Quote from @Matthew Pride:

    @Steven Wilson Great Read! Thanks for this! Columbus is now on my radar!


     That is great to hear! Honestly, this market has been incredible for growing my portfolio. I have been able to pick up 12 more units just this year with more in contract. 

    0Reply
  • Andrew Street
    Member since 2019 · 1k+ posts · 292 votes
    4y

    @Matthew Pride Consider markets that are more mature from a regulations standpoint when making a decision. There are many communities where laws are not in place for Airbnb's yet. This feels like a really great opportunity, but then the city could implement regulations against short term rentals and then your strategy is up in flames. There are communities where there's legislation in place that allow for airbnb's but just require them to go through the permitting process. This would be the friendly side of what you're looking for while staying within the confines of the law. Others have offered friendly options so I'll leave it there, but it's all about the maturity of the ordinances in place.

    1Reply
  • Jossalyn Wallace
    Real Estate Agent · Destin, FL · Member since 2019 · 116 posts · 111 votes
    4y

    Hi Matthew, If you're ok looking outside of NV I would also suggest the Florida Panhandle. I am a realtor and investor here and we have a wonderful STR market as well as military market if you ever wanted to consider long term rentals as well. We don't have a ton of restrictions with airbnb etc like i'm hearing Vegas does and returns are generally pretty good. Let me know if you have any questions or if you want to start browsing this area!

    0Reply
  • Aubrey Brendle
    Real Estate Agent · Asheville, NC · Member since 2021 · 11 posts · 12 votes
    4y
    Quote from @Melissa Wesling:

    This year so far our top markets seem to be Western NC, Carolina beaches, and Destin/PCB.
    Reach out if you want to talk more! 

    I actually work with one of the top performing real estate teams here in Western NC with a focus around Asheville, NC!  We specialize in short term rentals in our market and have in depth knowledge about what types of properties to prioritize and what locations bring in the best occupancy rates, nightly rate, etc.  With the Asheville and much of WNC being heavily driven by tourism the regulations in regards to short term rentals are very well established and easy to navigate.  If you want to chat more about WNC as a short term rental market I would be stoked to chat with you.  We love this area and can personally attest to the success of the vacation rental market here!


    1Reply
  • Ashlee Hutson
    Real Estate Agent · Pearland, TX · Member since 2019 · 59 posts · 34 votes
    4y

    @Matthew Pride 


    I would suggest looking into the Galveston area. It is STR friendly and we have regulations in place as well. I'm an investor/realtor and personally have two STRs in Galveston. Feel free to reach out if you have any questions.

    0Reply
  • William Beck
    Realtor · Branson, MO · Member since 2018 · 272 posts · 283 votes
    4y

    Branson, Gatlinburg, Destin, Blue Ridge, Hot Springs, Broken Bow, Galveston...

    1Reply
  • Carlos Ptriawan
    Member since 2019 · 7k+ posts · 4k+ votes
    4y
    Quote from @Matthew Pride:

    Looking for cities that are STR FRIENDLY! Any suggestions??!


    Hawaii, in the vacation zone. Very STR friendly. Automatic approval. Not in Residential zone though.

    0Reply
  • John Apolinar
    New to Real Estate · Tempe, AZ · Member since 2020 · 12 posts · 4 votes
    4y
    Quote from @Aubrey Brendle:

    WNC without a doubt is an amazing str market.  Asheville's economy is heavily driven by tourism but the city itself does not allow for short term rentals to be established which provides an opportunity for the surrounding mountain towns to become prime str areas.  I'd be happy to chat with you about our market anytime you'd like!


     Western Nevada College?

    0Reply
  • Alice Horn
    Property Manager · Kissimmee, FL · Member since 2019 · 445 posts · 266 votes
    4y

    @Matthew Pride welcome to the STR fact-finding journey. The Kissimmee and Davenport areas near Disney have a wide range of purpose-built STR communities. This means not only are they fully legal and you will never have to worry about changing regulations, but many communities also have a full slate of resort amenities (clubhouse, restaurant, pool, playgrounds, lazy river etc....) that Disney vacationers will want. Feel free to reach out if you would like more info about the specific communities and home types!

    3Reply
  • Jessica Laws
    New to Real Estate · Member since 2022 · 8 posts · 6 votes
    4y

    Look near major hospitals and target the travel nursing niche.

    0Reply
  • Mitch Davidson
    Lender · Asheville, NC · Member since 2020 · 463 posts · 507 votes
    4y

    @John Apolinar: @Aubrey Brendle was referring to Western North Carolina. :) I second her thoughts. We have a furnished monthly and STR here. Also, most of my lending clients are STR investors, meaning I'm often looking under the hood. That gives me all the more confidence that our market is one of the best for STR. Happy to discuss our market more, as well as finance plans, if you like.

    1Reply
  • John Apolinar
    New to Real Estate · Tempe, AZ · Member since 2020 · 12 posts · 4 votes
    4y

    @Mitch Davidson ahh that makes more sense. i googled WNC and Western Nevada College was what the acronym pointed to

    1Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    4y

    @Remington Lyman and @Steven Wilson what annual revenue to price ratio are you guys seeing in Columbus?

    1Reply
  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y

    @Brian G.Price to Gross STR rent ratio is around 1.5%, those are usually in the A areas like Short North, Grandview. @Marc Rice manages about 100 of them here in the city, he focuses on studio and 1 beds.

    0Reply
  • Joshua MessingerBusiness Member
    Property Manager · Poconos, PA · Member since 2020 · 443 posts · 264 votes
    4y

    Hey @Matthew Pride!

    Philadelphia for buildings that are zoned CMX-3 or above. Poconos, PA is generally friendly for STRs but can be outlawed in certain areas due to HOAs. Pittsburgh is very friendly towards STRs right now but may follow suit with the Philadelphia ordinance down the line. 

    I hope this helps and if you ever need anything don't hesitate to reach out! 

    All the best,

    Josh 

    [email protected]484-986-5012
    0Reply
  • Simon Ashbaugh
    Realtor · Columbus Ohio, Cleveland Ohio · Member since 2022 · 849 posts · 830 votes
    4y

    @Matthew Pride

    I would say any major city would be decent if you're in A-B+ neighborhoods. The farther you get away from water/traditional vacation spots the more important it will be to stay in A class areas.

    0Reply
  • Cherie Mayberry
    Member since 2022 · 5 posts · 2 votes
    4y
    0Reply
  • Cherie Mayberry
    Member since 2022 · 5 posts · 2 votes
    4y

    @Michael Weigum

    Hi - do you manage your own properties?  Use a property manager?  I'm interested in SC, but I need a property manager.

    0Reply
  • Eric GiovannucciBusiness Member
    Investor · Boise, ID · Member since 2014 · 172 posts · 99 votes
    4y

    Anchorage, Alaska

    Probably the least tapped market going! 

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    0Reply
  • Tyler Cobb
    Real Estate Agent · Member since 2019 · 58 posts · 42 votes
    4y

    I think Anchorage is really STR friendly. We have 2 currently and they are preforming very well!

    1Reply
  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Brian G.:

    @Remington Lyman and @Steven Wilson what annual revenue to price ratio are you guys seeing in Columbus?


    There are still 1% deal in Columbus

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