Short Term Rental in Poconos Still Profitable in 2023
Member since 2022 · 12 posts · 5 votes
Hello. I live fairly close to the Poconos. I would like to purchase a STR that I can also enjoy as a vacation home. I would be satisfied with just making enough to cover expenses because I need a place to get away from the city. My mortgage would be about 15,000 a year. Then there is a course money that is needed to pay cleaners and for repairs. Is this still a profitable area to invest in? Thank you.
I don't agree that you should manage things by yourself because it really depends on your priorities. Managing an Airbnb takes years of experience and even an entire team (in terms of pricing etc.) to really maximize everything. Sure if you plug vacasa into it they will do worse than what you can do because they don't give a flip but if you find a good local manager (I use Hyatus Stays) you can find they will do much better than what you can do because it's their full time focus and job. I'm in real estate (broker) but I don't want to learn the ropes of STR management
I just ran numbers on a property there this week that looked pretty good, the best underwriting I've seen in a while. If you purchase in the right location, have the design and amenities people are looking for, you would probably do aright.
There are a lot of STR Poconos groups on Facebook. You might want to check them out to get some thoughts there also.
I never understood this idea of 'I want an str so I can have a vacation home a few times a year'. You're just taking money away from your business when you use it personally, and in that case, you may as well not own it, and rent someone else's because 1. Cost is the same to you and 2. You get to choose a new place each time and 3. You don't have to block off dates well in advance, you can book whenever you like.
As far as the Poconos go, I'm making great money but I only have the best houses. If you're going run of the mill with a 1400 mortgage on a 2 or 3 bedroom, you'll find extreme competition and most likely won't get booked. Most people in the Poconos are struggling to rent nowadays unless they're one of the best.
I never understood this idea of 'I want an str so I can have a vacation home a few times a year'. You're just taking money away from your business when you use it personally, and in that case, you may as well not own it, and rent someone else's because 1. Cost is the same to you and 2. You get to choose a new place each time and 3. You don't have to block off dates well in advance, you can book whenever you like.
As far as the Poconos go, I'm making great money but I only have the best houses. If you're going run of the mill with a 1400 mortgage on a 2 or 3 bedroom, you'll find extreme competition and most likely won't get booked. Most people in the Poconos are struggling to rent nowadays unless they're one of the best.
Let me just say your tender and tone in this forum response is unptofessional.
I never understood this idea of 'I want an str so I can have a vacation home a few times a year'. You're just taking money away from your business when you use it personally, and in that case, you may as well not own it, and rent someone else's because 1. Cost is the same to you and 2. You get to choose a new place each time and 3. You don't have to block off dates well in advance, you can book whenever you like.
As far as the Poconos go, I'm making great money but I only have the best houses. If you're going run of the mill with a 1400 mortgage on a 2 or 3 bedroom, you'll find extreme competition and most likely won't get booked. Most people in the Poconos are struggling to rent nowadays unless they're one of the best.
Let me just say your tender and tone in this forum response is unptofessional.
No need to get upset. Buying a 2-3 bedroom house means you'll be fighting among thousands for scraps. It's hard to be the best at that. If you buy larger houses like I do, it's easier to be one of the best. I've also been doing this for 5 years, it's doubtful you'll immediately be good at this.
I meant no disrespect, but you have to face facts if you're going to invest your money. Numbers are all that matters, and a lot of people in the Poconos are losing money. I'm trying to help you not be one of them.
Good luck...
I never understood this idea of 'I want an str so I can have a vacation home a few times a year'. You're just taking money away from your business when you use it personally, and in that case, you may as well not own it, and rent someone else's because 1. Cost is the same to you and 2. You get to choose a new place each time and 3. You don't have to block off dates well in advance, you can book whenever you like.
As far as the Poconos go, I'm making great money but I only have the best houses. If you're going run of the mill with a 1400 mortgage on a 2 or 3 bedroom, you'll find extreme competition and most likely won't get booked. Most people in the Poconos are struggling to rent nowadays unless they're one of the best.
Let me just say your tender and tone in this forum response is unptofessional.
No need to get upset. Buying a 2-3 bedroom house means you'll be fighting among thousands for scraps. It's hard to be the best at that. If you buy larger houses like I do, it's easier to be one of the best. I've also been doing this for 5 years, it's doubtful you'll immediately be good at this.
I meant no disrespect, but you have to face facts if you're going to invest your money. Numbers are all that matters, and a lot of people in the Poconos are losing money. I'm trying to help you not be one of them.
Good luck...
Hey @Riza Susel, you might want to create a new thread to get a few answers.
IMHO, it will depend on where you are going to buy and what your demographic is.
We cater to families so we are pretty colorful with lots of comfort. Not slick and shiny or downtown beige. Our current guests called our home "warm and cozy. Easy to relax in".
We are a lake house that is pretty far out in the woods.
I never understood this idea of 'I want an str so I can have a vacation home a few times a year'. You're just taking money away from your business when you use it personally, and in that case, you may as well not own it, and rent someone else's because 1. Cost is the same to you and 2. You get to choose a new place each time and 3. You don't have to block off dates well in advance, you can book whenever you like.
As far as the Poconos go, I'm making great money but I only have the best houses. If you're going run of the mill with a 1400 mortgage on a 2 or 3 bedroom, you'll find extreme competition and most likely won't get booked. Most people in the Poconos are struggling to rent nowadays unless they're one of the best.
Let me just say your tender and tone in this forum response is unptofessional.
No need to get upset. Buying a 2-3 bedroom house means you'll be fighting among thousands for scraps. It's hard to be the best at that. If you buy larger houses like I do, it's easier to be one of the best. I've also been doing this for 5 years, it's doubtful you'll immediately be good at this.
I meant no disrespect, but you have to face facts if you're going to invest your money. Numbers are all that matters, and a lot of people in the Poconos are losing money. I'm trying to help you not be one of them.
Good luck...
Oh man. Your basically asking me to write you a course on how to run your entire business... Let me see if I can touch on the most important parts...
Please don't go white and grey. It's going to look dated (if it doesn't already) in 3 years. It's super trendy, and super boring. You want to stand out. My most successful house is loaded with color, we even wallpapered a bit which helps images pop.
This brings me to my most important advice - nothing matters except your listing photos. Sure you need bedrooms and bathrooms (with 6 bedrooms make sure your house septic is adequate according to your Township laws about occupancy limits) but in order to get booked compared to other houses, you need to look Instagram ready. People should see your photos and go wow that's beautiful. I use my friend who interior decorates.
I would strongly urge you not to use a manager. They'll take all your profit off the bat. Find a cleaner, use automation software like hospitable/price labs/turnoverbnb.
I'd rather not comment on if you bought the wrong house haha I mean, it's a bit too late for that isn't it? Do your best and if it doesn't work out, sell to another Airbnb host. They'll probably pay you more for a turnkey property. If you'd like more assistance message me personally, I'm starting an Airbnb consulting service. Good luck! Be prepared to spend the next few months working every day on this.
I don't agree that you should manage things by yourself because it really depends on your priorities. Managing an Airbnb takes years of experience and even an entire team (in terms of pricing etc.) to really maximize everything. Sure if you plug vacasa into it they will do worse than what you can do because they don't give a flip but if you find a good local manager (I use Hyatus Stays) you can find they will do much better than what you can do because it's their full time focus and job. I'm in real estate (broker) but I don't want to learn the ropes of STR management
I don't agree that you should manage things by yourself because it really depends on your priorities. Managing an Airbnb takes years of experience and even an entire team (in terms of pricing etc.) to really maximize everything. Sure if you plug vacasa into it they will do worse than what you can do because they don't give a flip but if you find a good local manager (I use Hyatus Stays) you can find they will do much better than what you can do because it's their full time focus and job. I'm in real estate (broker) but I don't want to learn the ropes of STR management
I don't agree that you should manage things by yourself because it really depends on your priorities. Managing an Airbnb takes years of experience and even an entire team (in terms of pricing etc.) to really maximize everything. Sure if you plug vacasa into it they will do worse than what you can do because they don't give a flip but if you find a good local manager (I use Hyatus Stays) you can find they will do much better than what you can do because it's their full time focus and job. I'm in real estate (broker) but I don't want to learn the ropes of STR management
Yes I think we are in agreement that without a lot of time it is not worth self managing. I do think it takes far more time to master pricing than you make it sound because pricing based on beyond / price labs etc. is really bad. That is just something I happen to know a lot about because I've worked in pricing algorithms for airlines etc. in the past and I think your average self manager has horrible pricing. But on everything else you said I 100% agree