Where to invest for STR and MTR
Member since 2021 · 101 posts · 55 votes
Where to invest for STR and MTR
Most Popular Reply
Investor · Minneapolis · Member since 2023 · 265 posts · 162 votes
2yAnother thing to notice is who the experts say are making money in 2024, which are luxury and eco/experience type properties. Don't be just another vanilla (forgettable) $190 ADR listing with cell phone pictures, no SEO and the same hot tub and fire pit as everyone else. You can do something simple like transform a garage or unfinished basement into a "wellness center" for about $10K and then make business connections with local yogis, wellness practitioners, hold meditation retreats and specialized events. Upcharge for spa boxes, maybe a massage or concierge services, etc...Those marketing strategies will boost your bookings and top line revenue, plus make you more memorable. Think a bit like a boutique hotel owner. The stay is just the beginning of the revenue stream, like a base line. It gets a guest in the door and you build the experience from there.
Be creative and see what's missing from the market you're interested in, fill the gap and think of it as a business, not just an Airbnb.
35 Replies
Quote from @Michael Baum:
Hi @Ivan Aldana, so you are a not really informed based on some of you statements.
First off, COVID drove people to vacation at STRs all over the place, but especially in more rural areas where they can get away from it all. Most of us saw record occupancy and nightly rates during the pandemic.
Urban STRs were hit harder due to the heavier restrictions in larger cities.
Regarding the rural vs urban, I believe in beaches, lakes and mountains for any STRs I look at. I almost never look at urban places.
In an urban/city you can expect STR restrictions, unreasonable regs (sometimes) and an overall dislike of STRs in general.
In a rural area, you can expect more acceptance due to the distances between homes, the taxes STRs bring in can make a real difference (plus the places people visit drive revenue) etc.
There are a ton of folks converting their STRs to LTRs due to outright bans in the bigger cities.
Buying your STR in the right area will be important. Plan ahead if you buy in a seasonal area. We are very seasonable and planned accordingly. No problems making a profit.
Lots of great advice in this thread. Do you or anyone have any recommendations on a market to look in for a short term rental that would cost under $150k? This would be my first property and I'd like to pay cash and not stress about having an additional mortgage. Also, I think I would struggle to qualify for any loans because I am already self employed and we don't pay ourselves a huge salary.
- Rental Property Investor · south carolina and michigan · Member since 2023 · 348 posts · 226 votes2y
Quote from @J Lyftogt:
Quote from @Michael Baum:
Hi @Ivan Aldana, so you are a not really informed based on some of you statements.
First off, COVID drove people to vacation at STRs all over the place, but especially in more rural areas where they can get away from it all. Most of us saw record occupancy and nightly rates during the pandemic.
Urban STRs were hit harder due to the heavier restrictions in larger cities.
Regarding the rural vs urban, I believe in beaches, lakes and mountains for any STRs I look at. I almost never look at urban places.
In an urban/city you can expect STR restrictions, unreasonable regs (sometimes) and an overall dislike of STRs in general.
In a rural area, you can expect more acceptance due to the distances between homes, the taxes STRs bring in can make a real difference (plus the places people visit drive revenue) etc.
There are a ton of folks converting their STRs to LTRs due to outright bans in the bigger cities.
Buying your STR in the right area will be important. Plan ahead if you buy in a seasonal area. We are very seasonable and planned accordingly. No problems making a profit.
Lots of great advice in this thread. Do you or anyone have any recommendations on a market to look in for a short term rental that would cost under $150k? This would be my first property and I'd like to pay cash and not stress about having an additional mortgage. Also, I think I would struggle to qualify for any loans because I am already self employed and we don't pay ourselves a huge salary.
@J Lyftogt
in out area you're going to be in a condo that's a 1/1 or mobile type investment. Both I would not recommend.
decent entry level is 250k minimum to get anything that's close to being able to have a decent return and even that is pushing it- at least for our area- Myrtle beach/Surfside
- Real Estate Agent · Laguna Beach, FL · Member since 2024 · 4 posts · 6 votes2y
Quote from @J Lyftogt:
Quote from @Michael Baum:
Hi @Ivan Aldana, so you are a not really informed based on some of you statements.
First off, COVID drove people to vacation at STRs all over the place, but especially in more rural areas where they can get away from it all. Most of us saw record occupancy and nightly rates during the pandemic.
Urban STRs were hit harder due to the heavier restrictions in larger cities.
Regarding the rural vs urban, I believe in beaches, lakes and mountains for any STRs I look at. I almost never look at urban places.
In an urban/city you can expect STR restrictions, unreasonable regs (sometimes) and an overall dislike of STRs in general.
In a rural area, you can expect more acceptance due to the distances between homes, the taxes STRs bring in can make a real difference (plus the places people visit drive revenue) etc.
There are a ton of folks converting their STRs to LTRs due to outright bans in the bigger cities.
Buying your STR in the right area will be important. Plan ahead if you buy in a seasonal area. We are very seasonable and planned accordingly. No problems making a profit.
Lots of great advice in this thread. Do you or anyone have any recommendations on a market to look in for a short term rental that would cost under $150k? This would be my first property and I'd like to pay cash and not stress about having an additional mortgage. Also, I think I would struggle to qualify for any loans because I am already self employed and we don't pay ourselves a huge salary.
I would look at the Panama City Beach, FL area. You can get a decent waterfront and/or close-to-the-beach condo for $250k or less. I know that's above your range, but you mention self-employment and struggling to qualify for loans. Have you looked at DSCR loans? They qualify you based on credit, down payment + reserves, and the projected rental income. For an area like PCB, the projected rental is strong and the area is growing like crazy.
- 2yJustin BrickmanBusiness MemberRealtor · San Antonio, TX · Member since 2021 · 502 posts · 274 votes
San Antonio :)
Justin Brickman Realty4.9145 Reviews - 2yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Quote from @Theresa Holl:
Another thing to notice is who the experts say are making money in 2024, which are luxury and eco/experience type properties. Don't be just another vanilla (forgettable) $190 ADR listing with cell phone pictures, no SEO and the same hot tub and fire pit as everyone else. You can do something simple like transform a garage or unfinished basement into a "wellness center" for about $10K and then make business connections with local yogis, wellness practitioners, hold meditation retreats and specialized events. Upcharge for spa boxes, maybe a massage or concierge services, etc...Those marketing strategies will boost your bookings and top line revenue, plus make you more memorable. Think a bit like a boutique hotel owner. The stay is just the beginning of the revenue stream, like a base line. It gets a guest in the door and you build the experience from there.
Be creative and see what's missing from the market you're interested in, fill the gap and think of it as a business, not just an Airbnb.
Do you have experience running a wellness center type property? I'm asking because I've been interested in in stalling a sauna an was wondering what the upkeep and cleaning of a wooden sauna typically looks like and any challenges relative to maintenance and guests being able to operate it (safely).
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votesI think 150k is going to be too low like most folks here have said. 250k is a doable number.
Quote from @J Lyftogt:
Lots of great advice in this thread. Do you or anyone have any recommendations on a market to look in for a short term rental that would cost under $150k? This would be my first property and I'd like to pay cash and not stress about having an additional mortgage. Also, I think I would struggle to qualify for any loans because I am already self employed and we don't pay ourselves a huge salary.
- Investor · Minneapolis · Member since 2023 · 265 posts · 162 votes2yYeah - my business partner has done it. I can connect you and she'll share some tips for sure.
Quote from @Bonnie Low:
Quote from @Theresa Holl:
Another thing to notice is who the experts say are making money in 2024, which are luxury and eco/experience type properties. Don't be just another vanilla (forgettable) $190 ADR listing with cell phone pictures, no SEO and the same hot tub and fire pit as everyone else. You can do something simple like transform a garage or unfinished basement into a "wellness center" for about $10K and then make business connections with local yogis, wellness practitioners, hold meditation retreats and specialized events. Upcharge for spa boxes, maybe a massage or concierge services, etc...Those marketing strategies will boost your bookings and top line revenue, plus make you more memorable. Think a bit like a boutique hotel owner. The stay is just the beginning of the revenue stream, like a base line. It gets a guest in the door and you build the experience from there.
Be creative and see what's missing from the market you're interested in, fill the gap and think of it as a business, not just an Airbnb.
Do you have experience running a wellness center type property? I'm asking because I've been interested in in stalling a sauna an was wondering what the upkeep and cleaning of a wooden sauna typically looks like and any challenges relative to maintenance and guests being able to operate it (safely).
- 2yBonnie LowPro MemberLender · Asheville, NC · Member since 2016 · 1k+ posts · 1k+ votes
Quote from @Theresa Holl:
Yeah - my business partner has done it. I can connect you and she'll share some tips for sure.Quote from @Bonnie Low:
Quote from @Theresa Holl:
Another thing to notice is who the experts say are making money in 2024, which are luxury and eco/experience type properties. Don't be just another vanilla (forgettable) $190 ADR listing with cell phone pictures, no SEO and the same hot tub and fire pit as everyone else. You can do something simple like transform a garage or unfinished basement into a "wellness center" for about $10K and then make business connections with local yogis, wellness practitioners, hold meditation retreats and specialized events. Upcharge for spa boxes, maybe a massage or concierge services, etc...Those marketing strategies will boost your bookings and top line revenue, plus make you more memorable. Think a bit like a boutique hotel owner. The stay is just the beginning of the revenue stream, like a base line. It gets a guest in the door and you build the experience from there.
Be creative and see what's missing from the market you're interested in, fill the gap and think of it as a business, not just an Airbnb.
Do you have experience running a wellness center type property? I'm asking because I've been interested in in stalling a sauna an was wondering what the upkeep and cleaning of a wooden sauna typically looks like and any challenges relative to maintenance and guests being able to operate it (safely).
Thank you - I appreciate that!
- 2yJulio GonzalezPro MemberSpecialist · West Palm Beach, FL · Member since 2008 · 4k+ posts · 1k+ votes
@Theresa Holl thanks for the mention!
- Investor · Minneapolis · Member since 2023 · 265 posts · 162 votes2y
Quote from @Julio Gonzalez:
@Theresa Holl thanks for the mention!
Yup. I loved my interview with Heidi for the webinar series...learned so much I should've paid her!! Cost seg for the win.
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