Longest Distance to Self- Manage First STR?

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Longest Distance to Self- Manage First STR?

Bien Nguyen
Realtor · Savannah, GA · Member since 2023 · 41 posts · 13 votes

My husband and I are new to Bigger Pockets and have been wanting to own an STR and Bed and Breakfast in the future. We have goals of obtaining and running 3 STR's within 5 years or less as we both work full time, and I do real estate in addition to my full time job. We have a goal of buying a STR by the end of the year if everything goals well.

We have been looking at different properties such as cabins and homes in North Georgia that area close to wineries, outdoor activities, and state parks; as well as beach condos in South Carolina and Florida.

However, we are struggling with whether our first STR should be close even if the numbers are not as strong.  My husband is concerned about the distance and he is particular about maintenance work/ renovations and wants to be close where he can drive to check on the property.  I, on the other hand, am more about the cash on cash return and believe we need to focus on a good market as long as it is within the state of Georgia (we live in Savannah area) or within a 2 hour drive if out of state (like South Carolina or Florida).  

How did others start and did you buy a property that was close as your first STR?  Thanks in advance for your feedback!

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

The closer you live, the better.  If you are self managing, you will need to make trips to take care of various items as you mentioned.  You’ll also need to form relationships with repair and maintenance folks as well as housekeepers.  The longer the distance, the bigger the challenge that is.  

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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y

    10,000 miles 

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    0Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    3y

    The closer you live, the better.  If you are self managing, you will need to make trips to take care of various items as you mentioned.  You’ll also need to form relationships with repair and maintenance folks as well as housekeepers.  The longer the distance, the bigger the challenge that is.  

    [email protected]806-672-7102
    SMOKY MOUNTAIN FALLS INC.51 Review
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    4Reply
  • Bien Nguyen
    OP
    Realtor · Savannah, GA · Member since 2023 · 41 posts · 13 votes
    3y
    Quote from @Luke Carl:

    10,000 miles 


    Hi! Your first STR was 10K miles? Awesome! How did you go about self managing it? Cleaners have been my current biggest challenge. I was trying to find an independent person and I keep getting cleaning companies.

    0Reply
  • Bien Nguyen
    OP
    Realtor · Savannah, GA · Member since 2023 · 41 posts · 13 votes
    3y
    Quote from @Collin Hays:

    The closer you live, the better.  If you are self managing, you will need to make trips to take care of various items as you mentioned.  You’ll also need to fork relationships with repair and maintenance folks as well as housekeepers.  The longer the distance, the bigger the challenge that is.  

     Thank you.   That is my husband's concern but the numbers don't work close to us.  Sellers market, everything is going quickly and higher than list price, on cash on cash numbers have us in the negative close to us.  We are not in a hurry so just being focused and being patient and focusing on the numbers.

    1Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    Buying proximity is all preference. I prefer to purchase within a few hour drive of where I live. Regardless, I never self manage. It opens me up to tons of liability due to the fact that I am not a professional in fair housing law, and it turns into a full-time job.

    2Reply
  • Collin HaysBusiness Member
    Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
    3y
    Quote from @Bien Nguyen:
    Quote from @Collin Hays:

    The closer you live, the better.  If you are self managing, you will need to make trips to take care of various items as you mentioned.  You’ll also need to fork relationships with repair and maintenance folks as well as housekeepers.  The longer the distance, the bigger the challenge that is.  

     Thank you.   That is my husband's concern but the numbers don't work close to us.  Sellers market, everything is going quickly and higher than list price, on cash on cash numbers have us in the negative close to us.  We are not in a hurry so just being focused and being patient and focusing on the numbers.

     I bet you can find something near you that will work great.  I know of nowhere that I can categorically say that the numbers are better than anywhere else.  Be patient - you’ll find something!

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    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @Bien Nguyen, our first STR is about 7 hours from us. I think that is about the max for a first time. It is a doable drive if necessary but far enough away to fine something that will work for you.

    1Reply
  • Bien Nguyen
    OP
    Realtor · Savannah, GA · Member since 2023 · 41 posts · 13 votes
    3y
    Quote from @Michael Baum:

    Hey @Bien Nguyen, our first STR is about 7 hours from us. I think that is about the max for a first time. It is a doable drive if necessary but far enough away to fine something that will work for you.


     Thank you!  Some of the cabins in the N. GA area seem better on CAC returns but are 5 hrs away.  Thanks for the feedback, Michael!

    0Reply
  • Cristian Portillo
    Real Estate Investor · Columbus, GA · Member since 2017 · 24 posts · 7 votes
    3y

    Hello! I just started my first Airbnb here in my local market. It was my primary which I converted to an Airbnb. I would 100% recommend local. Even if it's a seller's market in your area then try to put one under contract. If you hold it long enough then you'll get the appreciation so that'll be a plus. It would be best to see in first hand all the things that go into managing one locally and then look for one that you may manage that's further which is my plan. Just my opinion. Good luck!

    3Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    I started investing in the Smoky Mountains while living in Los Angeles. It is possible to do it from across the United States but it isn’t the easiest thing in the world. You have to rely on people that you may not know and develop relationships and trust from afar. I quickly relocated to be in the market. I had to fire several cleaners in the few months I lived in CA. 

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

    I would get the first house within a few hours away and learn the ropes.

    I would advise to stick with a house and skip any condos.

    2Reply
  • Josh Skyer
    Member since 2018 · 16 posts · 9 votes
    3y

    I focused on STR as close to where I live as possible. The first one was 2 blocks away from my house. For me it was important to learn every aspect of the STR business so we self managed everything and learned the game top to bottom.

    We built it up to 4 STR and were cooking with gas until BOOM -- The city we live in changed the laws around STR and Abnb and made rentals under 31 days basically illegal. Because we were doing such a high volume of rentals ( and not making any friends) someone reported us and we got busted and like a drug deal our homes go raided by special "air bnb police" with guns. Our guests were on vacation and thought they were getting arrested. It was pure insanity and cost us big $$ in fines. We did a hard pivot to MTR and don't make as much $$ but are fully booked with a lot less work.

    Just be careful and have a pivot plan incase your local municipality changes the laws. 

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

    If you have the right teams in place, you can absolutely run a STR long distance. Right now in this market, it's imperative that your COC return is good!! People purchasing properties with the "oh it's closer that's better than COC", are why they're crashing and burning while yelling about the "Airbnb bust" as they go down. The problem was they purchased a bad deal and didn't analyze it properly or made concessions.

    [email protected]330-557-3021
    0Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y
    Quote from @Bien Nguyen:
    Quote from @Luke Carl:

    10,000 miles 


    Hi! Your first STR was 10K miles? Awesome! How did you go about self managing it? Cleaners have been my current biggest challenge. I was trying to find an independent person and I keep getting cleaning companies.

    Turno would be your best friend for a long distance STR!

    [email protected]330-557-3021
    0Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y
    Quote from @Josh Skyer:

    I focused on STR as close to where I live as possible. The first one was 2 blocks away from my house. For me it was important to learn every aspect of the STR business so we self managed everything and learned the game top to bottom.

    We built it up to 4 STR and were cooking with gas until BOOM -- The city we live in changed the laws around STR and Abnb and made rentals under 31 days basically illegal. Because we were doing such a high volume of rentals ( and not making any friends) someone reported us and we got busted and like a drug deal our homes go raided by special "air bnb police" with guns. Our guests were on vacation and thought they were getting arrested. It was pure insanity and cost us big $$ in fines. We did a hard pivot to MTR and don't make as much $$ but are fully booked with a lot less work.

    Just be careful and have a pivot plan incase your local municipality changes the laws. 

    Where in the world did this happen?!?

    [email protected]330-557-3021
    1Reply
  • Bien Nguyen
    OP
    Realtor · Savannah, GA · Member since 2023 · 41 posts · 13 votes
    3y
    Quote from @Josh Skyer:

    I focused on STR as close to where I live as possible. The first one was 2 blocks away from my house. For me it was important to learn every aspect of the STR business so we self managed everything and learned the game top to bottom.

    We built it up to 4 STR and were cooking with gas until BOOM -- The city we live in changed the laws around STR and Abnb and made rentals under 31 days basically illegal. Because we were doing such a high volume of rentals ( and not making any friends) someone reported us and we got busted and like a drug deal our homes go raided by special "air bnb police" with guns. Our guests were on vacation and thought they were getting arrested. It was pure insanity and cost us big $$ in fines. We did a hard pivot to MTR and don't make as much $$ but are fully booked with a lot less work.

    Just be careful and have a pivot plan incase your local municipality changes the laws. 


     Wow!  Thanks for the information.   That is a concern and we are trying to run numbers as mid-term rentals as well as appreciation if we have to sell.   

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
    3y

    We manage about 80 listings in FL and I just started managing some in NJ (where I am from originally).  Nobody from our full time staff has been there once.  Once you know the ropes it can be done from anywhere.  It matters what your personal comfort level is.

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    0Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    Manage from 14 hours away! 

    You need Avery Carl’s book, Short Term Rental Long Term Wealth. It is your guide!! 

    1Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y

    @Bien Nguyen

    I don't manage out of state STRs, but I have a friend that lives in LA and has been managing an STR himself in Nashville for 4 years now. Doing it really well too.

    I always tell my investors that are buying in my market to at least give some consideration to self managing. 

    There are benefits and drawbacks to self managing and you just have to weigh them against each other to decide what is going to work best for your situation. 

    1Reply
  • KiKi ChaseBusiness Member
    Real Estate Agent · Indianapolis, IN · Member since 2022 · 184 posts · 75 votes
    3y

    It is whatever you're most comfortable with! We manage STRs for a lot of out of state investors that have the same worries, but it is just the way you set up your systems and teams!

    I would make sure you have a strong cleaning team, and maybe find someone that lives near by, that would be willing to do emergency maintenance for you. If you're looking for systems to automate the process more, I recommend Guesty for hosts, so you can automate messaging and such. Also, dynamic pricing (we use PriceLabs) is a great tool to use so you're not having to tweak the price on your own as much. Best of luck!

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  • Fiza Ah
    Investor · Member since 2020 · 80 posts · 71 votes
    3y

    I would invest in my own market as a first timer. You're much more likely to end up with guests who trash the place or throw parties because you're not used to vetting them yet. Also, many cities don't stop parties on your behalf or kick out renters. I tried to long distance manage a STR - never again!

    1Reply
  • Grant Bynum
    Member since 2018 · 14 posts · 7 votes
    3y
    Quote from @John Underwood:

    I would get the first house within a few hours away and learn the ropes.

    I would advise to stick with a house and skip any condos.


     Exceptional advice. Thank you John.

    0Reply
  • Bien Nguyen
    OP
    Realtor · Savannah, GA · Member since 2023 · 41 posts · 13 votes
    3y
    Quote from @John Underwood:

    I would get the first house within a few hours away and learn the ropes.

    I would advise to stick with a house and skip any condos.


     Hi John,
    Just curious as to why you would skip doing any condos? My husband and I have debated about this as there seems to be pros and cons. The biggest con thus far is condos have HOA fees that you can't control. But the idea of a smaller unit to renovate/furnish and manage is kind of appealing.

    0Reply
  • Timothy Howdeshell
    Investor · Fresno, CA · Member since 2016 · 222 posts · 237 votes
    3y

    @Bien Nguyen

    I suspect that this is very individual, but most buy properties close to where they live at first. My first purchase was a primary residence where I obviously lived in the area and property.

    All of my subsequent purchases have been sight unseen out of state (no STR though).

    The most important thing is to get into the game though and start owning rather than planning. You want to do that in a way that 1. Doesn't make you hate real estate and 2. Doesn't take you out of the game financially.

    Therefore I recommend starting with something close that you can touch, get eyes on. It's not that you can't do things from a distance. But this may be the confidence booster that gets you into the game. You can optimize and solve for higher returns later.

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y
    Quote from @Bien Nguyen:
    Quote from @John Underwood:

    I would get the first house within a few hours away and learn the ropes.

    I would advise to stick with a house and skip any condos.


     Hi John,
    Just curious as to why you would skip doing any condos? My husband and I have debated about this as there seems to be pros and cons. The biggest con thus far is condos have HOA fees that you can't control. But the idea of a smaller unit to renovate/furnish and manage is kind of appealing.


    HOA, rules, complaints, fees, fines, close proximity to others, upgrades they everyone has to chip in on.

    You ether have noisy guests that get you in trouble or their will be noise issues in the complex that you can't control.

    House can be bigger and make a lot more money.

    3Reply
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