Looking for advice on STR strategy and markets

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Looking for advice on STR strategy and markets

Robert Johnson
Member since 2023 · 24 posts · 21 votes

Hey everyone, new investor here. 

I have a clear goal of trying to hit $3k / mo in net cash flow and I have a moderate-to-high risk appetite. After some initial research this has led me to being attracted to STRs.

I've read "Rental Property Investing" and "Short Term Rental, Long Term Wealth" so far this year already. Ideally I'd like to find a property where I have a reasonable chance of not losing my shirt with contingency plans (i.e. retain the ability to use it as a LTR or MTR if STR doesn't work for whatever reason). I have the time and willingness to self-manage remotely. Because this is my first property I'd really love to find something as turnkey as possible and avoid rehabbing.

I'm wondering if I should buy the bnbinnercircle or BP STR BootCamp program first or just get to identifying markets and talking to agents that specialize in STRs to start underwriting properties to estimate cash flow? I have a spreadsheet set up already but the "Short term rental, long term wealth" book didn't go into that much detail in estimating gross annual income. Yes I'll use AirDna and any other tool I can find, but if anyone has a good resource for estimating this I'd super appreciate it. Lastly, I'm looking for some advice on how to narrow down what market I'm looking at. I downloaded the STR Insights 2024 report and am looking through that, but combined with using AirDna's data and asking myself "where would I want to vacation" I'm feeling a bit of analysis paralysis. If it's helpful, I love the outdoors. I surf, I climb, I love the mountains and hiking so any of that feels interesting. Thanks!

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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
2y

I am working with a client right now on a $750k purchase with a 15% investor loan netting $3-5k in net profits and a 30%+ CoC return (Tampa Gulf Beaches). Self managing first year for cost seg purposes then getting a PM and doing it again next year is the plan. Not all are that high, but it is definitely possible. I think you likely have enough knowledge now, and if you need clarification find it here. I would find an expert agent or PM in a solid market and take it from there. Good luck!

[email protected]813-563-0877
Vacation Rentals of Florida53 Reviews
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  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y
    Quote from @Kyle Wise:
    Quote from @Andrew Steffens:

    I am working with a client right now on a $750k purchase with a 15% investor loan netting $3-5k in net profits and a 30%+ CoC return (Tampa Gulf Beaches). Self managing first year for cost seg purposes then getting a PM and doing it again next year is the plan. Not all are that high, but it is definitely possible. I think you likely have enough knowledge now, and if you need clarification find it here. I would find an expert agent or PM in a solid market and take it from there. Good luck!

    @Andrew Steffens I live in Tampa and look at properties all day and am pretty skeptical you're seeing a 30% cocr return with these rates. Not saying it isn't possible but you've truly found a diamond in the rough with a 30% cocr especially as insurance premiums are going through the roof here. 


     Shoot me your email I send you one I am typing an offer up for a client now.

    PS They are using a 10% second home loan, so it is leveraged.  Straight cash on cash 12-15% typical, can go as high as 20%.

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
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  • Alyson Gordon
    Real Estate Broker · Raleigh, NC · Member since 2023 · 79 posts · 57 votes
    2y

    If you're planning on taking STRs seriously to maximize cashflow, I would take the time up front to either 1. hire a professional to handhold you through the process or 2. join a mastermind. Either option will allow you to short cut the process and make sure you're buying the right property with eyes wide open. 


    STRs are significantly different to evaluate compared to LTRs and your cash flow will be directly related to how well you purchase and furnish your property. I have been through a few boot camps and master minds and the best I've gone through is through STR Secrets with Michael Sjogren. He also has a podcast that is really good, but I would take my time before registering with a boot camp with hundreds of people vs the smaller groups where you get hands on, 1-on-1 help. Just my two cents ! :)

    1Reply
  • Kyle Wise
    Member since 2019 · 30 posts · 32 votes
    2y
    Quote from @Andrew Steffens:
    Quote from @Kyle Wise:
    Quote from @Andrew Steffens:

    I am working with a client right now on a $750k purchase with a 15% investor loan netting $3-5k in net profits and a 30%+ CoC return (Tampa Gulf Beaches). Self managing first year for cost seg purposes then getting a PM and doing it again next year is the plan. Not all are that high, but it is definitely possible. I think you likely have enough knowledge now, and if you need clarification find it here. I would find an expert agent or PM in a solid market and take it from there. Good luck!

    @Andrew Steffens I live in Tampa and look at properties all day and am pretty skeptical you're seeing a 30% cocr return with these rates. Not saying it isn't possible but you've truly found a diamond in the rough with a 30% cocr especially as insurance premiums are going through the roof here. 


     Shoot me your email I send you one I am typing an offer up for a client now.

    PS They are using a 10% second home loan, so it is leveraged.  Straight cash on cash 12-15% typical, can go as high as 20%.

     @Andrew Steffens Ok, sent you a dm

    0Reply
  • Neal Z.
    Miami · Member since 2013 · 42 posts · 24 votes
    2y

    How much are you sitting on the invest in a place? 

    If you want to learn the game, go manage some accounts for another operator. This will teach you operations and what makes a property perform well. No course or book is going to bring you the breadth of knowledge operating will. So, find a way to do that, without risking your own capital. Once you've learned enough, good deals will present themselves to you. Not in some woo woo way, but you'll have an eye for what performs and what doesn't. You'll see things others don't. That's where you make your money. 3K/mo is a fine starting goal. You can do this with 1 spot. Can also lose this with 1 spot if you jump in blind and some bad luck.

    I started managing accounts for guys, expanded to rental arbitrage, expanded to different markets to even cashflows in high and low seasons. Now have a sizable property management company, and do deals with guys who were first my landlord at rental arbitrage spots. But that all came from managing one apartment years ago.

    0Reply
  • Theresa Holl
    Investor · Minneapolis · Member since 2023 · 265 posts · 162 votes
    2y

    Hi @Robert Johnson - a buddy of mine is a good real estate coach and has a bunch of STRs. He might give you a few pointers.  Not sure if he's on BP or not. 

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