Buying STR with current rates as a retirement plan?

[Kiko Mattoso]

Hi everyone,

I want an honest answer about something. I own only one STR property upstate NY that gives me around 11% cash on cash return. This means, I get like around 10k per year, net. But reading some posts here on Biggerpockets, this deal will sound bad to a lot of investors who say they only consider deals that can generate at least 20%.

My long-term goal is to buy enough STR properties that will generate a cash flow of 20k/month, so I can retire in the next 15 years with live with this cash-flow money.

BUT, in NY the homes are expensive and with current interests rates, I am not sure now buying STR properties is the way to go. I probably can get 10% investing in stocks. Not sure I wanna go that route, though.

My thoughts: I could buy another house now that would generate another 10% Cash on Cash return, and get around 700 dollars per month in cash flow, but then I'd have to buy 25 properties to reach those 20k. I'd need to buy 2 per year, to achieve that, but I don't have the time or money to do that.  

I know some of you will say " find better deals, maybe not in NY" but how when you're on a 9 to 5 job?

Any advice? What is the best free tool to help me find the deals? I love real estate, so would prefer to find ways to make it right, than to invest in stocks.

Thanks a lot in advance!

[Travis Timmons]

One more unoriginal thought here - slow and steady still wins the race. 

Try to find your unfair advantage. Ours is that my wife is an interior designer. She does that for a living and has worked in $10M homes...she is actually a designer for a living, not "has an eye for design." It's a bit of a cheat code when buying short and medium term rentals. What is yours? Do you have specific hobbies or travel destinations that the masses do not know about as well as you? Do you have any advanced knowledge in construction? Do you have family member or close friends any interesting markets that will be helpful when building out boots on the ground? Find that unfair advantage, lean into it, and slowly, year by year, get the snowball rolling down the hill.