Considering getting into STRs. Any advice would be appreciated!

Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes

I would advise you to really pour into the contents on this forum. Read the questions and answers. I have my own blog that I write in from time to time. Some of those entries might be helpful.

Smokies state of the union (biggerpockets.com)

There's no such thing as a dumb question - feel free to ask. Good luck!

[email protected]806-672-7102

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3 Reply

Brian Barch

Member since 2022 · 272 posts · 253 votes

3y

I would use awning and airdna to research market potential. No tool is perfect, but one can reliably understand if the cost/market potential ratio makes sense to pursue.

is this purely an investment for you? Also personal use?

The STR market is at an inflection point where many cities/counties/HOAs are learning what ordinances need to be in place, so please do not take this risk lightly.

a condo association can simply say “no maś” and you are effectively
screwed.

There are all sorts of mentalities out there around blue chips markets being tried and true/over saturated, etc.

If it were me, I would research which markets had the best potential based on your budget and proximity, then start reaching out for STR specific realtor contacts in those markets in this forum

3 Reply

Travis TimmonsPro Member

Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes

3y

It's harder and more expensive to get a short term rental up and going than you think it will be, and it is easier to manage once it is established than you think it will be.

Other basic pieces of advice - do your own research. I like national parks bc there is a lot data on visitors. Lesser known places like New River Gorge, Mammoth Cave, Pictured Rocks National Lakeshore, Shenandoah, Acadia, etc. are going to outperform from a cash on cash, purchase price to annual gross rents standpoint. Airdna, rabbu, and others are a useful tool but not to be relied on completely. Stalk airbnb and vrbo listings in the areas that you are looking...find other listings that have average to below average furnishings, pictures, etc. that are doing well. That was the best data point for me getting started. I bought a house just down the street from a place that looked like two college guys furnished it. And that house was booked up like crazy...we have since outperformed that property (feels better than it should to watch our calendar fill up before theirs). During the "holy crap, we're spending so much money, this better work" period, it is reassuring to have those comps to look at for encouragement.

There's a lot more, but I'll stop at this. Launch your listing at the start or middle of peak travel season for wherever your property is located (likely summer). You'll get the new listing bump in search results for the first 30 days on the booking platforms. After those first 30 days in peak season, you'll have a fully booked calendar and will continue to show up well in search results, get a much needed cash injection, and launches you and you listing off with a great start and some momentum.

Feel free to send me a message if you think that I can be helpful or if you want to talk in more detail.

15 Reply

Dakoda Spencer

OP

Investor · Short Gap, WV · Member since 2016 · 160 posts · 38 votes

3y

Quote from @Brian Barch:

I would use awning and airdna to research market potential. No tool is perfect, but one can reliably understand if the cost/market potential ratio makes sense to pursue.

is this purely an investment for you? Also personal use?

The STR market is at an inflection point where many cities/counties/HOAs are learning what ordinances need to be in place, so please do not take this risk lightly.

a condo association can simply say “no maś” and you are effectively
screwed.

There are all sorts of mentalities out there around blue chips markets being tried and true/over saturated, etc.

If it were me, I would research which markets had the best potential based on your budget and proximity, then start reaching out for STR specific realtor contacts in those markets in this forum

Primary use would be as an investment, but of course I'm not opposed to visiting the location once a year for a break or to review how well the location feels to stay in. I have heard of airDNA, but not of awning yet. I'll look into that one.

Pardon my ignorance, but what is are "blue chip" markets? A simple google search doesn't answer it very well.

0 Reply

Dakoda Spencer

OP

Investor · Short Gap, WV · Member since 2016 · 160 posts · 38 votes

3y

Quote from @Travis Timmons:

It's harder and more expensive to get a short term rental up and going than you think it will be, and it is easier to manage once it is established than you think it will be.

Other basic pieces of advice - do your own research. I like national parks bc there is a lot data on visitors. Lesser known places like New River Gorge, Mammoth Cave, Pictured Rocks National Lakeshore, Shenandoah, Acadia, etc. are going to outperform from a cash on cash, purchase price to annual gross rents standpoint. Airdna, rabbu, and others are a useful tool but not to be relied on completely. Stalk airbnb and vrbo listings in the areas that you are looking...find other listings that have average to below average furnishings, pictures, etc. that are doing well. That was the best data point for me getting started. I bought a house just down the street from a place that looked like two college guys furnished it. And that house was booked up like crazy...we have since outperformed that property (feels better than it should to watch our calendar fill up before theirs). During the "holy crap, we're spending so much money, this better work" period, it is reassuring to have those comps to look at for encouragement.

There's a lot more, but I'll stop at this. Launch your listing at the start or middle of peak travel season for wherever your property is located (likely summer). You'll get the new listing bump in search results for the first 30 days on the booking platforms. After those first 30 days in peak season, you'll have a fully booked calendar and will continue to show up well in search results, get a much needed cash injection, and launches you and you listing off with a great start and some momentum.

Feel free to send me a message if you think that I can be helpful or if you want to talk in more detail.

Excellent advice! I have been reading/listening to any content that I can find on STRs, and they all seem to state about the same of getting one up and going, as well as managing.

I hadn't heard about the 30 day bump, so that is very helpful! I also will look into Rabbu, as this is the first I've heard it mentioned.

Pardon my ignorance, but when you state you like national parks, what does that mean? I have heard others talk about it as well. Do you simply like to consider STRs that are in close proximity to national parks? Or are you talking specifically of properties located inside of national parks (inholdings)?

0 Reply

John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

3y

Read Avery's book and this forum for all the answers.

1 Reply

Lauren Kormylo

Rental Property Investor · Phoenix, AZ and Rehoboth Beach DE · Member since 2019 · 1k+ posts · 1k+ votes

3y

Quote from @Dakoda Spencer:

Excellent advice! I have been reading/listening to any content that I can find on STRs, and they all seem to state about the same of getting one up and going, as well as managing.

I hadn't heard about the 30 day bump, so that is very helpful! I also will look into Rabbu, as this is the first I've heard it mentioned.

Pardon my ignorance, but when you state you like national parks, what does that mean? I have heard others talk about it as well. Do you simply like to consider STRs that are in close proximity to national parks? Or are you talking specifically of properties located inside of national parks (inholdings)?

Properties around national parks, where tourists stay. The Gatlinburg/Pigeon Forge market is one example, which is near the Great Smoky Mts. Nat. Park. Markets where tourists have been vacationing for decades, long before Airbnb or VRBO were around, are good places to look.
#1 is finding out regulations - by county, city, HOA etc. Many areas that were unregulated a few years ago now have restrictions, or are shut down completely for STRs. Areas that largely rely on tourists' money are more likely to be favorable, but not always, especially when service workers can't afford housing any longer.
I recommend joining some of the many Facebook owners groups for Airbnb and VRBO, and also for STR owners in the local city where you're looking. On Youtube, Bill Faeth has a lot of free good content, and on his own site. Sean Rakidzich has a lot of good videos on Youtube, he's mainly into arbitrage but his advice is applicable to owners too.

1 Reply

Travis TimmonsPro Member

Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes

3y

There are the big 63 National Parks (Yosemite, Grand Canyon, Great Smoky Mtn, etc) and a few hundred other national park sites like Pictured Rocks National Lakeshore (MI), Craters of the Moon (ID), Mt. Hood National Forest (OR), etc. Most folks don't know anything more than the biggest parks, which come with a very expensive price tag for real estate. The link below shows visitation numbers by month going back to 1979. If I were you and lived in West Virginia, I'd look at something near New River Gorge National Park. It's right down the road, gets over 1.5M visitors per year, and has a low entry point/price for a new investor.

https://irma.nps.gov/STATS/

11 Reply

Kiera Underwood

Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes

3y

@Travis Timmons love your concise, direct, useful information! Great response!

2 Reply

Leslie Anne Morris

Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes

3y

I wrote this and you might find it helpful, short read...

What to Consider When Buying Income Properties Out of State (biggerpockets.com)

1 Reply

Dakoda Spencer

OP

Investor · Short Gap, WV · Member since 2016 · 160 posts · 38 votes

3y

Quote from @John Underwood:

Read Avery's book and this forum for all the answers.

Just picked it up on Audible and am going through it. Thanks!

0 Reply

Dakoda Spencer

OP

Investor · Short Gap, WV · Member since 2016 · 160 posts · 38 votes

3y

Quote from @Travis Timmons:

There are the big 63 National Parks (Yosemite, Grand Canyon, Great Smoky Mtn, etc) and a few hundred other national park sites like Pictured Rocks National Lakeshore (MI), Craters of the Moon (ID), Mt. Hood National Forest (OR), etc. Most folks don't know anything more than the biggest parks, which come with a very expensive price tag for real estate. The link below shows visitation numbers by month going back to 1979. If I were you and lived in West Virginia, I'd look at something near New River Gorge National Park. It's right down the road, gets over 1.5M visitors per year, and has a low entry point/price for a new investor.

https://irma.nps.gov/STATS/

As Kiera mentioned, this is a great response. Thank you for the input!

0 Reply

George Guerrero

Member since 2022 · 10 posts · 3 votes

3y

I just bought my first STR in Pigeon Forge/TN. Excellent market. I can connect you with my agent if you are interested.

1 Reply

George Guerrero

Member since 2022 · 10 posts · 3 votes

3y

Bought my first STR today, 4th property total in less than 2 years. It is a dream come true to own a cabin. Long journey, lot of risk and work, but worth it.

1 Reply

Rashid Khalil

Member since 2022 · 88 posts · 29 votes

3y

Quote from @Travis Timmons:

It's harder and more expensive to get a short term rental up and going than you think it will be, and it is easier to manage once it is established than you think it will be.

Other basic pieces of advice - do your own research. I like national parks bc there is a lot data on visitors. Lesser known places like New River Gorge, Mammoth Cave, Pictured Rocks National Lakeshore, Shenandoah, Acadia, etc. are going to outperform from a cash on cash, purchase price to annual gross rents standpoint. Airdna, rabbu, and others are a useful tool but not to be relied on completely. Stalk airbnb and vrbo listings in the areas that you are looking...find other listings that have average to below average furnishings, pictures, etc. that are doing well. That was the best data point for me getting started. I bought a house just down the street from a place that looked like two college guys furnished it. And that house was booked up like crazy...we have since outperformed that property (feels better than it should to watch our calendar fill up before theirs). During the "holy crap, we're spending so much money, this better work" period, it is reassuring to have those comps to look at for encouragement.

There's a lot more, but I'll stop at this. Launch your listing at the start or middle of peak travel season for wherever your property is located (likely summer). You'll get the new listing bump in search results for the first 30 days on the booking platforms. After those first 30 days in peak season, you'll have a fully booked calendar and will continue to show up well in search results, get a much needed cash injection, and launches you and you listing off with a great start and some momentum.

Feel free to send me a message if you think that I can be helpful or if you want to talk in more detail.

great info, thanks a lot. i am in Michigan and looking at the upper peninsula, interesting that you mentioned Munising.

0 Reply

Dakoda Spencer

OP

Investor · Short Gap, WV · Member since 2016 · 160 posts · 38 votes

3y

Quote from @George Guerrero:

I just bought my first STR in Pigeon Forge/TN. Excellent market. I can connect you with my agent if you are interested.

Hey, if you're agent is used to working with investors finding STRs, yes please! I'd like to get some opinions from different agents on their market.

0 Reply

Travis TimmonsPro Member

Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes

3y

@Rashid Khalil I think that Michigan and Wisconsin offer the best opportunity nationwide for a first time investor. Munising is a winner of a market...I was actually up there in September doing some kayaking and property scouting. You can find a starter property for $150-170k (maybe less if you're willing to do some renovating) that will do 40-50k in gross rentals if managed properly. It's not going to appreciate as well as many other places, but for your first short term rental, who cares? It'll give you a low risk, cash machine of a property that gets you to your next deal really quickly. The primary goal of buying your first property is to get to the 2nd one as fast as you can.

And the UP is fun...you have a place on Lake Superior. You can see 40-50 feet down in the water on a sunny day, probably the best part of the lower 48 to see the Northern Lights, snowmobiling, ice caves on Lake Superior, it's the largest source of fresh water in the world just in case the whole global warming thing gets real...it's freakin' magical.

3 Reply

Mya Toohey

Real Estate Agent · Tampa Florida · Member since 2013 · 630 posts · 303 votes

3y

Hi @George Guerrero @Dakoda Spencer

Hi!!! Always, always get to know your market. Wherever it is...Know everything about it...What type of renters, what type of attractions, does your property fit those needs???? Make sure to learn how to enter, manage and follow up with your platforms! If you use a host or co-host, make sure you understand all of the fees and or benefits they offer and for what price % of Net or Gross??? Make sure you know if you have to have garbage pick up or is the cost included? Every Area has different rules and regulations, follow them, just because they are not being upheld, they may later, and you don't want to be caught with your "pants down". Always have three or more viable exits strategies, the market may crash, (we all hope not but) does your LTR cover your bills, Does Section 8 cover, would room by room rentals work in that area, Do you have a corporate rental need?, can you use as a government agency lease (halfway houses-foster care home-Injury Care housing, veterens Housing) can it be used as commercial space??? the list goes on, but if all else fails, would you live in it or a family member??? You can not guarantee anything these days, so, (sorry if I scared you ...LOL...but..you have to know the facts before you get into something new. Best of luck and happy holidays.

1 Reply

Andrew SteffensBusiness Member

Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes

3y

Quote from @Dakoda Spencer:

Since 2012, I've been on the sideline watching, learning, and saving to get into real estate investing. I'm 28 yrs old now and finally have some funds saved up and set aside specifically for real estate. Not a huge amount, but what I think it enough to get started. My goal over the next 6-12 months is to finally get into RE investing. I'm a real estate agent for West Virginia and Maryland, and prior to this last week, have only ever really considered LTRs, since STRs aren't popular in my area. About a week ago, I had a meeting with a fellow BP member who really opened my eyes to the STR potential. I've been doing a lot of reading over the last week, and now seem to be learning more towards starting my portfolio with STRs rather than LTRs. The CoC seems to be very appealing, and of course that is important when starting out since my cash reserves is pretty limited. I'm more open to investing out of state now, since my local market is "challenging" to become a full time real estate investor. I know it can be done, but if I can accelerate myself by starting out of state then later move back into my area as opportunities become available, then I'd like to at least see the options available.

Here's my question: Does anyone have any recommendations on where to start out for someone who is new to STRs? If anyone has any experience working with a specific group or course, I'd love to hear your input. Access to data is huge, and I know many people spend a many thousands dollars on courses to get started and to get access to tools. Does anyone have any recommendations for me that would be helpful?

Thanks and best regards!

Hi Dakoda! I am mostly seconding everything above. We started with one unit in 2016 and now have 70+. We are in FL, which is a great market. You will want to find where you want to be (there are plenty of high traffic markets) - you can use airDNA to help with that. Other than that I would not buy any courses, all the info you need is here. Feel free to reach out to myself (and a lot of other helpful people here as well) with specific questions. Best of luck!

[email protected]813-563-0877

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2 Reply

Dakoda Spencer

OP

Investor · Short Gap, WV · Member since 2016 · 160 posts · 38 votes

3y

Quote from @Andrew Steffens:

Quote from @Dakoda Spencer:

Since 2012, I've been on the sideline watching, learning, and saving to get into real estate investing. I'm 28 yrs old now and finally have some funds saved up and set aside specifically for real estate. Not a huge amount, but what I think it enough to get started. My goal over the next 6-12 months is to finally get into RE investing. I'm a real estate agent for West Virginia and Maryland, and prior to this last week, have only ever really considered LTRs, since STRs aren't popular in my area. About a week ago, I had a meeting with a fellow BP member who really opened my eyes to the STR potential. I've been doing a lot of reading over the last week, and now seem to be learning more towards starting my portfolio with STRs rather than LTRs. The CoC seems to be very appealing, and of course that is important when starting out since my cash reserves is pretty limited. I'm more open to investing out of state now, since my local market is "challenging" to become a full time real estate investor. I know it can be done, but if I can accelerate myself by starting out of state then later move back into my area as opportunities become available, then I'd like to at least see the options available.

Here's my question: Does anyone have any recommendations on where to start out for someone who is new to STRs? If anyone has any experience working with a specific group or course, I'd love to hear your input. Access to data is huge, and I know many people spend a many thousands dollars on courses to get started and to get access to tools. Does anyone have any recommendations for me that would be helpful?

Thanks and best regards!

Hi Dakoda! I am mostly seconding everything above. We started with one unit in 2016 and now have 70+. We are in FL, which is a great market. You will want to find where you want to be (there are plenty of high traffic markets) - you can use airDNA to help with that. Other than that I would not buy any courses, all the info you need is here. Feel free to reach out to myself (and a lot of other helpful people here as well) with specific questions. Best of luck!

Thank you for the input! I'm sure I'll have plenty of questions in the coming months, and I appreciate the offer of reaching out.

1 Reply

Sara Levy-Lambert

USA · Member since 2022 · 879 posts · 109 votes

3y

Research your market: It's important to understand the local demand for short-term rentals and the competition in your area. Look at Airbnb data and other online platforms to see what types of properties are popular, how much they're renting for, and how often they're booked. You can also talk to other STR owners or local real estate agents to get a sense of the market.
Determine your business model: There are a few different ways to approach the STR business. You could buy a property and manage it yourself, hire a property management company to handle the day-to-day operations, or use a hybrid model where you manage the property but outsource some tasks like cleaning and maintenance. Consider your time, skills, and resources when deciding on a model that works best for you.
Develop a budget: Calculate the costs of acquiring and operating a property, including the purchase price, closing costs, renovations, insurance, property management fees, and marketing expenses. Make sure you have enough capital to cover these costs and still have a cushion for unexpected expenses.
Consider the location: Location is important for any real estate investment, but it's especially critical for STRs. Look for areas with high demand for short-term rentals, such as popular tourist destinations or areas near major events or attractions.
Find yourself a good STR broker and investment advisor: You can google awning str buying to find one such nationwide option. There are others out there. Having someone experienced on your side is a huge benefit

1 Reply

Zach Edelman

Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes

3y

Quote from @George Guerrero:

Bought my first STR today, 4th property total in less than 2 years. It is a dream come true to own a cabin. Long journey, lot of risk and work, but worth it.

Congratulations George! What market is it in?

1 Reply

Dakoda Spencer

OP

Investor · Short Gap, WV · Member since 2016 · 160 posts · 38 votes

3y

Quote from @Sara Levy-Lambert:

Research your market: It's important to understand the local demand for short-term rentals and the competition in your area. Look at Airbnb data and other online platforms to see what types of properties are popular, how much they're renting for, and how often they're booked. You can also talk to other STR owners or local real estate agents to get a sense of the market.
Determine your business model: There are a few different ways to approach the STR business. You could buy a property and manage it yourself, hire a property management company to handle the day-to-day operations, or use a hybrid model where you manage the property but outsource some tasks like cleaning and maintenance. Consider your time, skills, and resources when deciding on a model that works best for you.
Develop a budget: Calculate the costs of acquiring and operating a property, including the purchase price, closing costs, renovations, insurance, property management fees, and marketing expenses. Make sure you have enough capital to cover these costs and still have a cushion for unexpected expenses.
Consider the location: Location is important for any real estate investment, but it's especially critical for STRs. Look for areas with high demand for short-term rentals, such as popular tourist destinations or areas near major events or attractions.
Find yourself a good STR broker and investment advisor: You can google awning str buying to find one such nationwide option. There are others out there. Having someone experienced on your side is a huge benefit

This is exactly what I'm hearing in the different materials I've been hearing/reading. Great advice! I have heard others mention "Awning", so I went ahead and just signed up to have a meeting tomorrow to talk to someone there to see what it's all about. Thanks for the recommendations!

0 Reply

John UnderwoodPro Member

Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes

3y

Make sure the area you are interested in is not over saturated already.

Too much competition on an average property coupled with today's elevated ARV prices make it much tougher to ve successful.

Yes it is still possible but you will need to work harder to set yourself apart from the competition to make the mortgage payment.

1 Reply

Tyler Fontaine

Property Manager · Member since 2022 · 196 posts · 125 votes

3y

Glad to see you want to venture into STR. Thats a great way to make cashflow.

Couple things I'd be checking before anything.

Make sure the municipality you intend to invest in allows STRs and they dont have plans in the works to start limited or even eliminating STRs. I live in Rhode Island. Some of our ocean cities and then sub-cities surrounding the capital Providence is beginning to try and restrict the amount of STRs, the geographic locations they can be in, setting up legislation that requires specific permitting use, and so on.

Next, I would connect with your local REIA and see if there are other investors who are already doing STRs in the area you want to be in. See if you can pick their brains for advice. Then I would ensure you come up with a system as to how you will handle giving remote access to renters (digital locks with changeable unlock codes), create a one pager of "House Rules" for renters as to how to handle the use of the property (do they have deck access, rules for the pool/jacuzzi, instructions for wifi access, emergency contact numbers, lists of local restaurant's/bars/entertainment, how to check out properly and the condition they should leave the unit in, etc.), line up a cleaning company and someone who can restock the place with cleaning goods/towels/if you provide complimentary snacks etc.

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Considering getting into STRs. Any advice would be appreciated!

Considering getting into STRs. Any advice would be appreciated!

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