Outer Banks, NC Short term rental

[Account Closed]

I am looking at possibly buying a house in the OBX for a STR. It seems like most of the homes on the beach have good gross rents, but after factoring in expenses, most don't seem to be anywhere close to having positive cash flow. I am wondering if anyone in BP has experience with these assets in that market.

[John Underwood]

Quote from @Wilson Hunter:

I have a house on Hatteras, and it’s my first season. It’s cashflowing very well, but it required significant rehab and was a fortunate find. From my analysis of the market you need to be careful with soundfront, because they look awesome but numbers are way worse than on the beach. Note that I self-manage.

 This is a great example of not buying a turnkey property. Many turnkey properties in hot markets have little chance of being able to cash flow. There are exceptions of course.

Wilson found a fixer upper at a discount to retail and put the work into it.