First home buyer - where to buy first STR?

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First home buyer - where to buy first STR?

Member since 2023 · 8 posts · 5 votes

Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃

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John Carbone

Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes

Quote from @Dustin James:

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃

Wait until the winter.

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John Carbone
Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
3y
Quote from @Dustin James:

Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃

Wait until the winter.
3 Reply
Sarah KensingerPro Member
Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
3y
Look in areas that would be near national parks and don't have a strong hotel presence. There might be a bit of an off-season time in those areas, but in-season usually does very well!
[email protected]330-557-3021
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Prescott AZ
0 Reply
Dustin James
OP
Member since 2023 · 8 posts · 5 votes
3y
Quote from @John Carbone:

Quote from @Dustin James:

Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃

Wait until the winter.

Until winter where?
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @Dustin James:

Quote from @John Carbone:

Quote from @Dustin James:

Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃

Wait until the winter.

Until winter where?

Wait until winter to buy because prices will drop.....
0 Reply
Dustin James
OP
Member since 2023 · 8 posts · 5 votes
3y
Quote from @Bruce Woodruff:

Prescott AZ

Any more details on this?
0 Reply
Melanie Johnston
Real Estate Agent · Scottsdale, AZ · Member since 2018 · 412 posts · 366 votes
3y
@Dustin James Other Metro Phoenix cities you might consider are Tempe, Mesa and Peoria. Any of those markets would be easy enough for your brother to help you manage. And you are smart to look in only non-HOA neighborhoods--that's my first search criteria when helping BiggerPockets investors buy in Metro Phoenix.
All of the BP investors I've helped buy STRs here live out of state and manage their properties remotely. As long as you have a good handyman/brother as boots on the ground and a good cleaning crew, you can be successful.
Reach out if I can help,
Melanie
1 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @Dustin James:

Quote from @Bruce Woodruff:

Prescott AZ

Any more details on this?

Nope, don't know what kind of details you want...? Just check it out...
0 Reply
Dustin James
OP
Member since 2023 · 8 posts · 5 votes
3y
Quote from @Bruce Woodruff:

Quote from @Dustin James:

Quote from @Bruce Woodruff:

Prescott AZ

Any more details on this?

Nope, don't know what kind of details you want...? Just check it out...

What is your rational for recommending this location? Anyone can recommend any location, but why this one?
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @Dustin James:

Quote from @Bruce Woodruff:

Quote from @Dustin James:

Quote from @Bruce Woodruff:

Prescott AZ

Any more details on this?

Nope, don't know what kind of details you want...? Just check it out...

What is your rational for recommending this location? Anyone can recommend any location, but why this one?

I have a couple in the area.
0 Reply
John Carbone
Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
3y
Quote from @Bruce Woodruff:

Quote from @Dustin James:

Quote from @John Carbone:

Quote from @Dustin James:

Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃

Wait until the winter.

Until winter where?

Wait until winter to buy because prices will drop.....
And there will be more post Covid travel data to see where we are headed for future traveler demands.
1 Reply
Brian Barch
Member since 2022 · 272 posts · 253 votes
3y
Depends on your goals.
do you want to use for personal use?
How long to you plan to hold?
As a general rule for newbies, I recommend inexpensive places that have upside via modest design changes. Smaller the better.
1) easier to clean
2) small places tend to have higher occupancy
3) lower initial investment
4) lower risk while you learn

1 Reply
Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
Hey @Dustin James, there is a ton of places you could look. Prescott, AZ is a close getaway place for those in Phoenix as well as a gateway to Sedona etc. Nice town!

I think you should cross international investing off your list for now. That opens a new can of worms and seeing as you have no experience. No need to buy trouble.

I guess you need to ask yourself what you are looking to do. Do you want a pure profit cow? Do you want to use it from time to time?

I would take a bunch of time and read the forum back to front. There is a ton of info on here that can get you started.

You can also grab @Avery Carls book - https://store.biggerpockets.co...
That has all the info you need about the search, the numbers, the purchase etc etc.
0 Reply
Brooklyn McCarty
Investor · Member since 2022 · 1k+ posts · 754 votes
3y
National parks are a great place to start!

0 Reply
Luka Milicevic
Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
3y
I wouldn't consider a market saturated and highly competitive as a bad thing....
It could also mean there is a lot of demand
I'll PM you with some notes on my market
0 Reply
Jossalyn Wallace
Real Estate Agent · Destin, FL · Member since 2019 · 116 posts · 111 votes
3y
Quote from @Dustin James:

Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃

Hi Dustin! Congratulations on taking the leap! I can't speak to the AZ market but have heard good things. I would still weigh your options there as it is always nice to have someone you trust on the ground.
As far as other markets, I personally sell and invest in the Florida Panhandle and have been very fortunate. We have a strong tourism market and a few surrounding military bases really rounding things out. With your budget I would consider Mexico Beach to Navarre. You will have a little bit of everything depending on your goals. Mexico Beach for example, will cash flow you some but would be more of a long term appreciation play as it is still growing. Panama City Beach, Destin, Navarre, Miramar Beach are more established therefore pushing higher premiums but we do see many properties here hitting that 1% rule.
Feel free to reach out with questions or if you want to talk about the area further. Best of luck and crush it wherever you go!
0 Reply
Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y
Quote from @Luka Milicevic:

I wouldn't consider a market saturated and highly competitive as a bad thing....
It could also mean there is a lot of demand
I'll PM you with some notes on my market

Yes, ^^^ the cluster effect is used in marketing all the time. Go where everyone else is sometimes works....guaranteed groups of potential customers....
0 Reply
Leslie Anne Morris
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
3y
I vote Smoky Mountains! I’m still seeing properties come on market that will cash flow that investors aren’t jumping on. I have two recent classes I held out on YouTube that talk about the market and how to underwrite these deals.
0 Reply
Doug Spence
Investor · San Diego, CA · Member since 2016 · 1k+ posts · 975 votes
3y
@Dustin James Have you considered the Florida panhandle? I have buddies that have STR's there and are crushing it. I'm happy to connect you with them.
1 Reply
Jon Martin
Member since 2022 · 1k+ posts · 1k+ votes
3y
Quote from @Brian Barch:

Depends on your goals.
do you want to use for personal use?
How long to you plan to hold?
As a general rule for newbies, I recommend inexpensive places that have upside via modest design changes. Smaller the better.
1) easier to clean
2) small places tend to have higher occupancy
3) lower initial investment
4) lower risk while you learn

Agree with all of this. Define your goals first and find markets that fit those goals.
Also, forget about international. You won't be able to finance anything, at least not with the kind of terms and low down payment we have here. Not to mention the legal aspects, security concerns, trusting and managing people from another culture etc
1 Reply
Napoleon DeCiutiis
Real Estate Agent · The Short Term Shop / Florida Emerald and Forgotten Coasts · Member since 2022 · 217 posts · 126 votes
3y
Quote from @Dustin James:

Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃

The Short Term Shop is in Scottsdale. Ask for Jessica Marriott or Leslie Carbajal!
If you go down to pretty much any corner, you're going to see a McDonalds/Burger King/Sonic/In n out....all within a couple blocks of each other....no one is complaining about Burger Saturation in their community...make your burger the best one and you'll have people showing up. Avery is in these markets for a reason.
1 Reply
Lauren Endres
Real Estate Agent · Member since 2022 · 15 posts · 10 votes
3y
Hey Dustin, I would suggest Panama City Beach as it has an abundance of room for growth and we have seen big changes to the area regarding development within the past few years. It is a highly traveled to area as its a major drive-in destination for over 10 southern states. The west end has had a lot of money dumped into it to raise the values and increase profitability. I would also recommend using some creative financing offers to decrease your monthly payments. There are plenty of options that are available to make an affordable purchase with cash flow and ROI in this area. Not to mention the beaches are hard to on the Gulf.
2 Reply
Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
3y
FYI on Revnest.com, @Stefan St. Marie is the co-founder and CTO.
Dirty pool...
0 Reply
Ben Scarborough
Realtor · Gulf Shores, AL · Member since 2020 · 153 posts · 76 votes
3y
Quote from @Dustin James:

Need a bit of help as I'm approaching decision paralysis - I'm looking for recommended cities to invest in for STR. Trick is im planning to manage everything remote and/or use a management company. I was looking in Scottsdale, AZ because my brother lives there and can help just in case - but I know Scottsdale is very saturated and highly competitive - so I'm now looking into other locations too. Can anyone recommend other regions / cities that are hot / up and coming? (Would also consider international too)1

Pre-approved at 700k and ready to purchase any time. Not looking for anything with HOA. Willing to do a renovation if needed.

Any input is greatly appreciated as I am a first home buyer and want to start off on the right foot. 🙃
If you are open to investing in a coastal short term rental, I would highly recommend checking out the gulf coast of AL and FL. I'm biased, but you will not find prettier beaches in America. I am originally from Atlanta and the combination between the nature parks, cleanliness, and the friendliness of locals quickly convinced me to make the move more permanent in the Gulf Shores and Orange Beach markets. More specifically, Alabama is a great option for STR investors in general due to being ranked the 2nd lowest state in the USA in property taxes. If you are looking for appreciation, the market still has significant amount of room to continue to develop and several new constructions are in the works. If you are looking to avoid seasonality, you can count on the snowbirds to swarm in from the midwest from January to March. Several more reasons I would be happy to discuss... Feel free to reach out!
-Ben Scarborough
0 Reply
Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
3y
I am a big proponent of Florida! Stable regulation, strong rental demand, growing market with appreciation this year, etc.
[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
Website View Page
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