Best area for STR, Santa Rosa Beach, Nashville, Austin

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Best area for STR, Santa Rosa Beach, Nashville, Austin

Jane ParkPro Member
Denver, CO · Member since 2023 · 5 posts · 1 vote

Hi. I am very new so please be kind if my question is too general as I understand that lots of factors can come into play but for those of you more seasoned investors, if you had the opportunity to invest in those 3 areas for a new STR or MTR in today's market which area would you focus if any? Thank you in advance for any input/advice you can offer this newbie!!!

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Zach Edelman
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y

With regards to ATX - the city is highly regulated and there are different types of STR licensing, so I would highly recommend looking to the due diligence and layout ahead of time. The city even recently said they are working harder to crack down on unlicensed STRs operating illegally: https://www.msn.com/en-us/vide...

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  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    @Jane Park

    The only person that can really answer this accurately is someone that invests in ALL 3 markets lol!

    I can say that anything CA should be avoided. Starting a business, investing, buying a house, etc.

    I have helped many people from CA move to Nashville and can't understand how anyone can live under those crushing regulations and red tape

    Nashville is a great market for both STR and MTRs. It has a mix of industries that draw in travelers from all parts of the country, not just tourism. There are several large employers in the area that have corporate staff coming in for extended stays as well.

    The only downside is the cost to enter the market can be quite high. You mentioned Santa Rosa and Austin, those two markets are expensive too. 

    Let me know if you have any other specific questions about Nashville. 

    2Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
    3y
    Quote from @Luka Milicevic:

    @Jane Park

    The only person that can really answer this accurately is someone that invests in ALL 3 markets lol!

    I can say that anything CA should be avoided. Starting a business, investing, buying a house, etc.

    I have helped many people from CA move to Nashville and can't understand how anyone can live under those crushing regulations and red tape

    Nashville is a great market for both STR and MTRs. It has a mix of industries that draw in travelers from all parts of the country, not just tourism. There are several large employers in the area that have corporate staff coming in for extended stays as well.


     I'm pretty sure she is talking about Santa Rosa Beach in Florida, not Santa Rosa the landlocked wine country in California.

    Regardless, Nashville and Austin are just as oppressive from a regulatory standpoint as California anyways, so it's sixes there.

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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y

    If you are talking about Santa Rosa Beach in FL...most of that area is residential, so make sure to really check the neighborhood/HOA regulations before purchasing a property! Nashville can be pretty restrictive also, but @Luka Milicevic would know those details and possible areas outside of city limits that might be open to STR. And I have no idea about Austin as I have never even looked at that market. I would highly suggest getting to know your market before committing to purchasing a STR. Missing that step alone could cost you and bring a lot of headaches, you must know your market inside and out!

    [email protected]330-557-3021
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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y

    Nashville no. Austin no. 

    Best area is where your wife likes to go on vacation! 

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  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y
    Quote from @Luke Carl:

    Nashville no. Austin no. 

    Best area is where your wife likes to go on vacation! 

    Amen to that!! Now to convince my husband. ;D
    [email protected]330-557-3021
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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    I am bullish on anything in FL due to beach, net population gain, corporate relocations, and a state law that does not allow municipalities to add new laws or modify grandfathered existing laws so it will protect your right to STR.

    Let me know if you ever consider Tampa/Clearwater/Saint Pete area :D

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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    Not CA.

    I think the right property in one of the other areas could do well

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Jane Park, both Austin and Nashville have restrictions that need navigation so you would want a STR savvy agent to help with that.

    Santa Rosa Beach has implemented some new regs - https://www.pressdemocrat.com/...

    So it isn't that great a place to do STRs either.

    0Reply
  • Christian Espana
    Member since 2021 · 46 posts · 29 votes
    3y

    @Luka Milicevic funny enough I live in Santa Rosa, CA and also have STRs in Nashville. I would say Nashville is a bit saturated and STR are having a soft year. Prices have come down, I see a lot of price reductions and still lots of inventory. I suspect you are not familiar with STRs in Santa Rosa ( sonoma county) they are gold mines if you were lucky and got permitted before they started the new regulations. The revenue you can get in this area blows away anything I've seen in Nashville, probably because all the high tech business that is driving distance. Having said that, California is a large state and some of the people that leave simply are looking for more affordable areas and don't represent all of CA. I also have long term rentals here and rents are crazy high, you can rent rooms for close to 2K and I've never had any bad situations since 2006 when I started in REI as a way to park extra cash.

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  • Jon Martin
    Member since 2022 · 1k+ posts · 1k+ votes
    3y
    Quote from @Michael Baum:

    Hey @Jane Park, both Austin and Nashville have restrictions that need navigation so you would want a STR savvy agent to help with that.

    Santa Rosa Beach has implemented some new regs - https://www.pressdemocrat.com/...

    So it isn't that great a place to do STRs either.


    Santa Rosa beach is in Florida near Destin. The Santa Rosa you linked above is in northern California. Nice town within a quick drive to a lot of amazing places but yeah, not STR friendly.

    1Reply
  • Napoleon DeCiutiis
    Real Estate Agent · The Short Term Shop / Florida Emerald and Forgotten Coasts · Member since 2022 · 217 posts · 126 votes
    3y
    Quote from @Michael Baum:

    Hey @Jane Park, both Austin and Nashville have restrictions that need navigation so you would want a STR savvy agent to help with that.

    Santa Rosa Beach has implemented some new regs - https://www.pressdemocrat.com/...

    So it isn't that great a place to do STRs either.

    Good morning Michael! Wrong Santa Rosa! Santa Rosa Beach is an STR magnet in the Emerald Coast! We perform amazingly here! If you look at the map in the article, it's topographical, and we have very few, if any, contour lines in Florida. 
    1Reply
  • Justin Vogelgesang
    Investor · Fort Worth, TX · Member since 2021 · 68 posts · 57 votes
    3y

    Hey Jane! Like you said, there's quite a bit that goes into that question, but I'll throw out a few key points. I sold investment properties in Nashville and now DFW, so I can speak a bit on both of those mainly. 

    1) Spend a day and research the STR regulations in each location. I believe it was in 2021 that Davidson County (Nashville) began restricting who could receive a permit for an STR. If a property already had one, then it would be grandfathered in. As for applying for a new permit for a property that you purchased, you can only do so under certain conditions. If you were to rent it out at monthly intervals, then it wouldn't need that permit anymore though. It has been a minute since I've been in this market so definitely do you due diligence on that one still, I don't remember all of the details anymore.

    2) Cash flow is important of course, BUT that shouldn't be the main factor. I would focus on whichever market has been experiencing the most growth, as appreciation will be more valuable to you in the long run. If you can find a semi-distressed property, that would be ideal. Do a bit of research into the BRRRR method.

    I know Austin and Nashville are two very good markets! Admittedly, I don't keep up with Santa Rosa Beach, so I'm not suggesting that it is subpar in any way to the other options. Find a couple properties in each location though and see which will be the best deal with these factors in mind. Hope that helps a bit!

    1Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    With regards to ATX - the city is highly regulated and there are different types of STR licensing, so I would highly recommend looking to the due diligence and layout ahead of time. The city even recently said they are working harder to crack down on unlicensed STRs operating illegally: https://www.msn.com/en-us/vide...

    6Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y
    Quote from @Napoleon DeCiutiis:
    Quote from @Michael Baum:

    Hey @Jane Park, both Austin and Nashville have restrictions that need navigation so you would want a STR savvy agent to help with that.

    Santa Rosa Beach has implemented some new regs - https://www.pressdemocrat.com/...

    So it isn't that great a place to do STRs either.

    Good morning Michael! Wrong Santa Rosa! Santa Rosa Beach is an STR magnet in the Emerald Coast! We perform amazingly here! If you look at the map in the article, it's topographical, and we have very few, if any, contour lines in Florida. 
    Well dang! Sorry everyone! I am usually pretty solid with my search algorithm.
    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y
    Quote from @Jon Martin:
    Quote from @Michael Baum:

    Hey @Jane Park, both Austin and Nashville have restrictions that need navigation so you would want a STR savvy agent to help with that.

    Santa Rosa Beach has implemented some new regs - https://www.pressdemocrat.com/...

    So it isn't that great a place to do STRs either.


    Santa Rosa beach is in Florida near Destin. The Santa Rosa you linked above is in northern California. Nice town within a quick drive to a lot of amazing places but yeah, not STR friendly.

    Yeah, sorry about that! It was late and I just didn't read it right...yeah...that's the ticket...
    1Reply
  • Ricardo Hidalgo
    Real Estate Agent · Member since 2019 · 569 posts · 257 votes
    3y
    Quote from @Jane Park:

    Hi. I am very new so please be kind if my question is too general as I understand that lots of factors can come into play but for those of you more seasoned investors, if you had the opportunity to invest in those 3 areas for a new STR or MTR in today's market which area would you focus if any? Thank you in advance for any input/advice you can offer this newbieC

     Panama City beach for cashflow and appreication

    Santa Rosa Beach for mostly appreciation 

    Navarre beach or Mexico beach for long term appreciation and rent growth. 

    I predict a 2.2 to 2.6 equity multiple over the next 10 years as a conservative numbers based on current fundamentals and commercial growth.

    2Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    Focus on nation parks! Regional, drivable markets! 

    1Reply
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