Starting an STR business anywhere in the US

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Starting an STR business anywhere in the US

Account Closed
Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes

Hey everyone,

I am looking to start my own STR portfolio business possibly in the U.S. (I currently live in Spain).

I have cash and the possibility to get extensive financing in different channels.

I wanted to ask a few questions:

1) Where would be a good location to start in the U.S?

2) What are realistic returns from experience given I will manage it myself (will find my own cleaning services etc.)

3) Where can I find good sources of information about the economics of such a venture?

Thank you

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

What is your US Citizenship status? If you're seeking financing to start your STR portfolio business, you need to look into this as I know conventional lenders will strictly lend to US citizens. 

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  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y
    Just start with one and go from there. If you're looking to do a whole bunch of them at once I would just jump right to a hotel. It's just like playing monopoly :) 
    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    Florida still has good returns :)

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    3y

    What is your US Citizenship status? If you're seeking financing to start your STR portfolio business, you need to look into this as I know conventional lenders will strictly lend to US citizens. 

    10Reply
  • Pete AppezzatoPro Member
    Real Estate Agent · Destin, FL · Member since 2019 · 49 posts · 18 votes
    3y

    I love the Emerald Coast of Florida for many reasons. Wherever you may be looking, make sure you choose a market that has friendly STR regulations and an easy to find ground team for the properties. If you'd like to discuss this area, I'd be happy to do that. Not only that, but my team will help educate you on self management, we have weekly live zoom calls and provide all the local contacts you will need. I will message you!!!

    [email protected]212-300-5102
    0Reply
  • Account Closed
    OP
    Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes
    3y
    Quote from @Zach Edelman:

    What is your US Citizenship status? If you're seeking financing to start your STR portfolio business, you need to look into this as I know conventional lenders will strictly lend to US citizens. 


     I am a US citizen. Also as I mentioned before, I have access to different financing options both for mortgages as well as equity backed loans etc. 

    Mostly looking to understand which market has the highest potential for STRs. 

    0Reply
  • Account Closed
    OP
    Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes
    3y
    Quote from @Luke Carl:
    Just start with one and go from there. If you're looking to do a whole bunch of them at once I would just jump right to a hotel. It's just like playing monopoly :) 

     Getting into the hotel business seems like a big dive into the water for me at this point. 

    Would prefer to start smaller with 2-3 properties and take it from there. 

    0Reply
  • Account Closed
    OP
    Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes
    3y
    Quote from @Andrew Steffens:

    Florida still has good returns :)


     Can you give me some examples of what one might be able to earn in Florida and where?

    Thank you

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y
    Quote from @Account Closed:

    Hey everyone,

    I am looking to start my own STR portfolio business possibly in the U.S. (I currently live in Spain).

    I have cash and the possibility to get extensive financing in different channels.

    I wanted to ask a few questions:

    1) Where would be a good location to start in the U.S?

    2) What are realistic returns from experience given I will manage it myself (will find my own cleaning services etc.)

    3) Where can I find good sources of information about the economics of such a venture?

    Thank you

     We manage all over the state but I am best versed on the Gulf Coast near Tampa as my personal portfolio is all in this market.  Some recent deals I have closed for clients $420k all in purchase (needed some repairs) $75,000 conservative gross annual income.  Also a $640k purchase (came turnkey with verified booking history) - $130,000 gross annual income.

    While both of these examples are 19/20% gross returns respectively the average are 14-16%.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    1Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y

    Google top vacation destinations. 

    There will be plenty of U.S. vacation hot spots.

    Then eliminate ones where there is too much red tape.

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

    This is kind of a hard question since your international. I always tell people to choose areas that they would enjoy going to visit, and then narrow that down to the place that would give the best return. If that can be helpful to you, I would advise narrowing down your possible areas that way.

    [email protected]330-557-3021
    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    I agree with @Sarah Kensinger. The question is too broad. You can do OK in many areas of the US.

    You need to start with one. Get the hang of that and then move on.

    Unless you are made of money and want to take the risk.

    Take some time and read the forum. There is a ton of info in here about locations.

    1Reply
  • Account Closed
    OP
    Investor · Miami, FL · Member since 2023 · 120 posts · 46 votes
    3y
    Quote from @Sarah Kensinger:

    This is kind of a hard question since your international. I always tell people to choose areas that they would enjoy going to visit, and then narrow that down to the place that would give the best return. If that can be helpful to you, I would advise narrowing down your possible areas that way.


     Thanks for your input. I am less interested to utilize the rental for my own personal use, but rather to establish a business around STRs in a certain area that can be successful and perhaps later even grow it to a management company that can bring outside investors. 

    1Reply
  • Sarah KensingerPro Member
    Real Estate Consultant · OH · Member since 2023 · 2k+ posts · 1k+ votes
    3y
    Quote from @Account Closed:
    Quote from @Sarah Kensinger:

    This is kind of a hard question since your international. I always tell people to choose areas that they would enjoy going to visit, and then narrow that down to the place that would give the best return. If that can be helpful to you, I would advise narrowing down your possible areas that way.


     Thanks for your input. I am less interested to utilize the rental for my own personal use, but rather to establish a business around STRs in a certain area that can be successful and perhaps later even grow it to a management company that can bring outside investors. 

    I get that but sometimes to gain the passion you need to push a STR right, it should be in a place you enjoy. That doesn't work for everyone, but it can be the drive behind an exceptional STR.
    [email protected]330-557-3021
    0Reply
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