STR CoC Performance Expectations

[Rich Miller]

I realize there are lots of variables at play, but what are some ballpark CoC returns one could expect with this strategy? I've heard mentions of 25% CoC returns but have not seen it in the handful of analysis that I've done. Does Pricelabs or Airdna reveal insights to best CoC market rankings?

[Travis Timmons]

@Rich Miller It's not worthless. I just found that it was not as complete or packaged as I was hoping for $200/month. You'll find data on a bunch of smaller markets, college towns, and cities. It, just like airdna, rabbu, or others, is still just a starting point. You have develop some expertise or specific market knowledge.

Then you have to write a check. And after that, you have to start writing more checks and doing the hard work of setting a property up for success. It's really hard and expensive to get a short term rental up and going. Everyone sees the big numbers and returns but very few folks want to hear about how stressful and expensive it is before you make a dime of revenue. The underserved markets and desired returns mentioned don't have turn key, furnished properties. Most properties are going to need at least a light renovation and furnishing. You're going to be stuck in the "holy crap, we're spending so much money...this better work" stage for 3-6 months. It sucks in the beginning.