Best markets to do 100k in rev

Salt Lake City, Utah
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Best markets to do 100k in rev

Cody Dastrup
Member since 2020 · 21 posts · 2 votes

Hey everyone! 

I just secured my 2nd STR and in May entered year 2 of my STR journey. The 2 properties combined should do about 95k in rev next year on about 3.7k in monthly payments ($370k and $260k purchase prices respectively)

I’m wanting to challenge myself a bit on my next purchase and look at something that can do $100k in annual rev.

My question: Are there any markets where properties are sub $800k and doing $100k in annual revenue? 

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John D.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
4y

An $800k property that grosses $100k is a 12.5% rent ratio. That's barely break-even after CAPEX, maintenance, a fair amount to pay yourself for property management, etc on some of these large properties.

My last purchase in Lake Havasu was $705k plus $160k remodel and furnishing, will do $160kish a year gross rents(I was hoping for $240k but market has slowed down bigtime).  My last purchase between the Palm Springs / Joshua Tree area was for $800k and $120k remodel and furnishing, will do $220k a year gross rents (I was hoping for more like $300k but the market has changed bigtime, like many).

These larger properties have more overhead, I would encourage you to set your sights higher, especially in this market environment of diminishing prices and lower occupancy.


Sounds like you have properties that cost $630k purchase (plus some upgrades, furnishings, furniture, etc, expenses) that gross $8k a month.  I congratulate you on getting started!  But there are better numbers to be had.  Have you taken a look at some smaller hotels or motels, or similar?  Homes are expensive these days, the prices in hospitality have been beaten down after COVID, given their usual financing methods.

While I know short-term rentals are all the rage, there are small businesses to be bought with much greater returns, that don't necessarily require more time. Home prices have doubled in the last few years, and interest rates nearly doubled as well, which means your main underlying cost on a STR has basically quadrupled. While occupancy and rates are declining vs. the last couple of years. You either need to get REAL good at this business while preparing to make less money, or find a new angle. It's a new reality out here.

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  • Scott Yesner
    Rental Property Investor · Member since 2022 · 8 posts · 7 votes
    4y

    @Cody Dastrup the Poconos Mountains area has some great options at that price point and which should surpass $100k revenue. I have a bunch up there that are doing very well. 

    1Reply
  • Robert Finn
    Realtor · San Antonio, TX · Member since 2021 · 150 posts · 107 votes
    4y

    You can still acquire a pool property here in San Antonio TX, under 300k. Revenues are roughly in the 80k+ range, most likely higher as we summers are extremely hot! Demand has historically been high for travel with the theme parks, weekly military basic training graduations, medical district, and historic downtown draw (Alamo, Riverwalk, etc).

    4Reply
  • Cody Dastrup
    OP
    Member since 2020 · 21 posts · 2 votes
    4y
    Quote from @Robert Finn:

    You can still acquire a pool property here in San Antonio TX, under 300k. Revenues are roughly in the 80k+ range, most likely higher as we summers are extremely hot! Demand has historically been high for travel with the theme parks, weekly military basic training graduations, medical district, and historic downtown draw (Alamo, Riverwalk, etc).

    @Robert Finn I never would have thought about SA as a STR market. I work a lot in Texas and my wife is from Houston and so I've always naturally gravitated toward Tx. Would love to get more info on a high-level, if you have some areas that you'd suggest. I will dm you!

    0Reply
  • Lucie Tighe
    Property Manager · Tampa, FL · Member since 2022 · 147 posts · 66 votes
    4y

    Tampa, FL is a great market. 4-bedroom house in Southwest Tampa with average occupancy between 55-72% can get you 80-102k.

    2Reply
  • Wale LawalBusiness Member
    Real Estate Broker · Houston | Dallas | Austin, TX · Member since 2018 · 5k+ posts · 2k+ votes
    4y

    @Cody Dastrup

    Houston, TX is a great option.

    The income growth is steady as well as the appreciation.

    Get in touch with local agents and investors to understand the market better.

    Good luck!

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

    @Cody Dastrup

    You can acquire a beach house in the Galveston area and do 100K in revenue, especially if you are canal or waterfront-which is possible for less than $800k. I have two beach houses that are on dry lots that do well. Feel free to reach out if you have any questions.  

    1Reply
  • Kristina Kuba
    Tampa, FL · Member since 2021 · 383 posts · 389 votes
    4y

    $600k house in Tampa proper that sleeps 12-14 will typically gross $100k plus. Also, much lower property tax if comparing to another southern state such as TX where is is 2.8% per year of assessed value

    2Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    4y

    @Robert Finn do you own/operate STRs in San Antonio?

    0Reply
  • Robert Finn
    Realtor · San Antonio, TX · Member since 2021 · 150 posts · 107 votes
    4y

    @Brian G. I own and operate 3 STR's in San Antonio and 1 in Marco Island Florida.

    1Reply
  • John-Charles Bautista
    Investor · Katy, TX · Member since 2021 · 10 posts · 5 votes
    4y

    @Robert Finn

    Thanks for sharing this information. These STRs in San Antonio that produce 80k+, how big are these houses? 2000+sqft and 3+ bedrooms?

    0Reply
  • Robert Finn
    Realtor · San Antonio, TX · Member since 2021 · 150 posts · 107 votes
    4y

    @John-Charles Bautista 3/4 bedroom, 2/3 bathrooms, 1800+ sqft, and must have a pool. Preferably heated and or salt water. Location is also a factor of course :) 

    1Reply
  • Raven Lawrence
    Real Estate Agent · San Antonio, TX · Member since 2022 · 12 posts · 2 votes
    4y

    I second San Antonio! Let me know if you're looking for properties that's my speciality. I work 100% with investors in the SA market.

    0Reply
  • Paiton Patterson
    Investor · Chattanooga, TN · Member since 2022 · 17 posts · 3 votes
    4y

    I'm seeing great opportunities in and around Chattanooga, TN!

    0Reply
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