Real Estate Agent · Abilene, TX · Member since 2019 · 223 posts · 88 votes
If you could only pick one type of location to invest in STR's for the rest of your investing career, which type of location would it be? Near the mountains(Like Gatlinburg), near the beach(Like Destin), or in a city(Like Vegas) and why?
*Doesn't have to be the locations I used as an example just wanted to give an example!
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Beach, Lake or Mountain.
Drivable markets.
Places you would go on vacation with your family.
Vegas might be a good market but not were I would personally invest. If you live close by then it would be worth running the numbers to determine feasibility.
Rental Property Investor · Palm Springs, CA · Member since 2023 · 20 posts · 9 votes
3y
Beach, 100%… being near a significant body of water has always seemed like a major predictor of appreciation in value to me, and there seems to be STR demand year-round. Just my personal choice and opinion!
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
3y
Beach, Lake or Mountain.
Drivable markets.
Places you would go on vacation with your family.
Vegas might be a good market but not were I would personally invest. If you live close by then it would be worth running the numbers to determine feasibility.
Investor · Las Vegas, NV · Member since 2013 · 8k+ posts · 10k+ votes
3y
I think you can do fine in any of those situations which means the local/state government and permanent costs play a bigger factor.
If you avoid the state of California because they hate you, keep adding costs and changing laws for the worse. That’s a lot of beach and mountain property off the table.
If you avoid the beaches in Florida because of the insane insurance increases, and Texas if the property tax stories are to be believed.
Then look for the best weather and lowest taxes in the remaining areas where they don't hate you. I've never been, but this sounds like Gatlinburg, or much of Arizona. Maybe big lakes that are drivable from big cities. People have been doing this for decades in MN. There's probably a version in UT and AR. I would throw in Las Vegas because of all the California driving traffic we get. But we're not really very STR friendly and we are becoming California East as far as attitudes towards landlords.
I think you can do fine in any of those situations which means the local/state government and permanent costs play a bigger factor.
If you avoid the state of California because they hate you, keep adding costs and changing laws for the worse. That’s a lot of beach and mountain property off the table.
If you avoid the beaches in Florida because of the insane insurance increases, and Texas if the property tax stories are to be believed.
Then look for the best weather and lowest taxes in the remaining areas where they don't hate you. I've never been, but this sounds like Gatlinburg, or much of Arizona. Maybe big lakes that are drivable from big cities. People have been doing this for decades in MN. There's probably a version in UT and AR. I would throw in Las Vegas because of all the California driving traffic we get. But we're not really very STR friendly and we are becoming California East as far as attitudes towards landlords.
That would also leave ocean front houses in the Carolinas. Myrtle Beach and Hilton Head to name 2 nice areas.
I think you can do fine in any of those situations which means the local/state government and permanent costs play a bigger factor.
If you avoid the state of California because they hate you, keep adding costs and changing laws for the worse. That’s a lot of beach and mountain property off the table.
If you avoid the beaches in Florida because of the insane insurance increases, and Texas if the property tax stories are to be believed.
Then look for the best weather and lowest taxes in the remaining areas where they don't hate you. I've never been, but this sounds like Gatlinburg, or much of Arizona. Maybe big lakes that are drivable from big cities. People have been doing this for decades in MN. There's probably a version in UT and AR. I would throw in Las Vegas because of all the California driving traffic we get. But we're not really very STR friendly and we are becoming California East as far as attitudes towards landlords.
That would also leave ocean front houses in the Carolinas. Myrtle Beach and Hilton Head to name 2 nice areas.
That’s the advantage of not having one state cover the entire coast like California. Far enough south to be warm, farm enough north to avoid most of the severe weather (maybe less humid?). Drivable from a lot more states. Also never been, but it always looks good on the beach hunter tv shows. I don’t know if any of the islands out there would be better or worse.
Lender · CO CA TX WA ID OR · Member since 2020 · 419 posts · 542 votes
3y
@Bobby Paquette
Mordor is nice when the Eye of Sauron is not upon you. Although one could argue for Funkytown, being that the vibes are always good. Personally, I’m choosing a Galaxy, Far Far Away due to the tax incentives the Empire is giving to landlords.
If you could only pick one type of location to invest in STR's for the rest of your investing career, which type of location would it be? Near the mountains(Like Gatlinburg), near the beach(Like Destin), or in a city(Like Vegas) and why?
*Doesn't have to be the locations I used as an example just wanted to give an example!
I'd go with Hawaii because I'm from there and love the vibe. Lake Tahoe would be perfect for seasonal mountain activities, and Las Vegas has so much to offer with its hiking, gambling, and events. Three awesome choices for STR investments! If I could only choose one, Hawaii because it is the most healing and the STR rates are the highest. Below are some comparisons however please note I was not able to get the 2023 stats for these locations. I can find out; it just takes a little more research on my end :-)
Hawaii (Beach):
Tourism: Hawaii had almost 10 million visitors in 2019, and most of them were from the US.
Occupancy Rates: In 2019, vacation rentals in Hawaii were occupied around 72% of the time on average.
Rental Rates: The prices varied depending on which island you're on. On Oahu, you'd be looking at around $240 a day, while Maui would cost you around $349 and Kauai about $314 in 2020.
Seasonality: Hawaii sees a pretty steady stream of tourists year-round, but there are times when demand spikes during the popular travel seasons.
Lake Tahoe (Mountains):
Tourism: Lake Tahoe had about 15 million visitors in 2019. Lots of folks head there for outdoor activities like skiing, hiking, and boating.
Occupancy Rates: In 2019, the occupancy rates for vacation rentals in Lake Tahoe were around 60% on average.
Rental Rates: Depending on the specific area and season, you could find vacation rentals ranging from $200 to $400 per night .
Seasonality: The winter ski season and summer months are when things get really busy in Lake Tahoe, but the shoulder seasons can be slower with lower occupancy rates.
Las Vegas Strip (City):
Tourism: Las Vegas is a hotspot with over 42 million visitors in 2019. People come from all over the world to experience the entertainment, casinos, and nightlife.
Occupancy Rates: In 2019, the vacation rental occupancy rate in the Las Vegas area was around 75% on average.
Rental Rates: On average, vacation rentals in Las Vegas went for about $170 per night, but prices can vary depending on the property's features and how close it is to the Strip.
Seasonality: Las Vegas attracts tourists all year long, so demand stays pretty consistent, but there can be spikes during events and holidays.
Real Estate Broker · Kaneohe, HI · Member since 2020 · 193 posts · 163 votes
3y
Interesting question and I enjoyed reading the responses. Although I love a secluded spot in the mountains along a river or lake a bit more than the beach, I'd chose beach location for an STR. And I've never been to Gatlinburg nor Lake Destin, and have no idea of the STR market in those places, and am sure there are many other great places in the US to own a STR. But personally, I'd pick Hawaii. There is an "off season" but the islands attract people from around the world all 12 months. And I just spoke to a successful vacation rental manager - probably the largest on O'ahu. He shoots for an 85% occupancy rate year around. Be curious to know what other markets can perform like that.
If you could only pick one type of location to invest in STR's for the rest of your investing career, which type of location would it be? Near the mountains(Like Gatlinburg), near the beach(Like Destin), or in a city(Like Vegas) and why?
*Doesn't have to be the locations I used as an example just wanted to give an example!
beach, from statistical perspective, beach STR is 100% occupied and I'm a proof of that LOL
Interesting question and I enjoyed reading the responses. Although I love a secluded spot in the mountains along a river or lake a bit more than the beach, I'd chose beach location for an STR. And I've never been to Gatlinburg nor Lake Destin, and have no idea of the STR market in those places, and am sure there are many other great places in the US to own a STR. But personally, I'd pick Hawaii. There is an "off season" but the islands attract people from around the world all 12 months. And I just spoke to a successful vacation rental manager - probably the largest on O'ahu. He shoots for an 85% occupancy rate year around. Be curious to know what other markets can perform like that.
If you could only pick one type of location to invest in STR's for the rest of your investing career, which type of location would it be? Near the mountains(Like Gatlinburg), near the beach(Like Destin), or in a city(Like Vegas) and why?
*Doesn't have to be the locations I used as an example just wanted to give an example!
beach, from statistical perspective, beach STR is 100% occupied and I'm a proof of that LOL
Maybe some others here could also chime in to share their experiences with mountain STRs in the off-season because I am in a beach town so my market stays occupied year-round easily as well. I really want to purchase a mountain property (Western NC) but I have no idea what to expect there in the November-March months.
Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
3y
The biggest question that you may be realizing after everyone saying what they like :)..... what do YOU want. Then dive into that market and see if you could have a successful STR.
Beach, 100%… being near a significant body of water has always seemed like a major predictor of appreciation in value to me, and there seems to be STR demand year-round. Just my personal choice and opinion!
I do think being near the water is an appreciation market, for the most part. What about insurance costs?
I think you can do fine in any of those situations which means the local/state government and permanent costs play a bigger factor.
If you avoid the state of California because they hate you, keep adding costs and changing laws for the worse. That’s a lot of beach and mountain property off the table.
If you avoid the beaches in Florida because of the insane insurance increases, and Texas if the property tax stories are to be believed.
Then look for the best weather and lowest taxes in the remaining areas where they don't hate you. I've never been, but this sounds like Gatlinburg, or much of Arizona. Maybe big lakes that are drivable from big cities. People have been doing this for decades in MN. There's probably a version in UT and AR. I would throw in Las Vegas because of all the California driving traffic we get. But we're not really very STR friendly and we are becoming California East as far as attitudes towards landlords.
That would also leave ocean front houses in the Carolinas. Myrtle Beach and Hilton Head to name 2 nice areas.
I live right in the middle of those two (Charleston, SC) lol
If you could only pick one type of location to invest in STR's for the rest of your investing career, which type of location would it be? Near the mountains(Like Gatlinburg), near the beach(Like Destin), or in a city(Like Vegas) and why?
*Doesn't have to be the locations I used as an example just wanted to give an example!
beach, from statistical perspective, beach STR is 100% occupied and I'm a proof of that LOL
If you could only pick one type of location to invest in STR's for the rest of your investing career, which type of location would it be? Near the mountains(Like Gatlinburg), near the beach(Like Destin), or in a city(Like Vegas) and why?
*Doesn't have to be the locations I used as an example just wanted to give an example!
beach, from statistical perspective, beach STR is 100% occupied and I'm a proof of that LOL
Maybe some others here could also chime in to share their experiences with mountain STRs in the off-season because I am in a beach town so my market stays occupied year-round easily as well. I really want to purchase a mountain property (Western NC) but I have no idea what to expect there in the November-March months.
I would be curious to see the numebrs on a Western NC mountain STR. Are we talking Blue Ridge?