Where to own STR that cash flows at current interest rates?

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Where to own STR that cash flows at current interest rates?

Yiwei Cheng
Investor · Cincinnati, OH · Member since 2023 · 139 posts · 81 votes

I'm curious to know what locations you are seeing cash flow if buying at current interest rates (7.5-8%)?

How much is the property, and what cash flow are you seeing?

Thanks!

3Reply
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Travis TimmonsPro Member
Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
2y

Do. Your. Own. Research.

Stop following the crowd and asking strangers on the internet and lean into what you already know. Or develop some sort of subject matter expertise. Otherwise, you're late to the party or following the advice of a stranger on the internet with something to sell.

Lastly, it's a "what can you do that is really hard" market. Figure that out and you'll find your cashflow.

11Reply
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  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    2y

    It's more about finding a property that works, than finding an area where everything does.

    5Reply
  • Yiwei Cheng
    OP
    Investor · Cincinnati, OH · Member since 2023 · 139 posts · 81 votes
    2y
    Quote from @John Underwood:

    It's more about finding a property that works, than finding an area where everything does.


     Yep so I want to know where are you finding properties that is working for you?

    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y
    Quote from @Yiwei Cheng:

    I'm curious to know what locations you are seeing cash flow if buying at current interest rates (7.5-8%)?

    How much is the property, and what cash flow are you seeing?

    Thanks!


     Hi - I am based in Tampa.  There are still cash flowing opportunities at current rates and I am closing 2-3 per month for people like yourself.  Ill send you a DM :)

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    1Reply
  • Josh GreenBusiness Member
    Realtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 396 posts · 353 votes
    2y

    I personally am buying and helping clients buy in the Tampa Bay Area for a few reasons:

    Here, you have a historically strong and consistent tourism presence, limited land/STR allowable areas, highly liquid property compared to selling a cabin in the woods, all 9 classes of visitors in the STR sector, and appreciation. Florida is projected to lead the country in net migration in the US and projects a 10% net increase by 2030 with Tampa leading that charge. The ratio of new jobs to new home starts is a staggering 2:1 making that growth sustainable. It's a jack of all trades here with little to no trade offs/cons when comparing apples to apples to other large STR markets.

    The key to success here though comes in the knowledge and execution. Buying the right property type, location and price are half of the equation. The other half is: excellent finished product design and management at a reasonable cost.

    As an investor and agent here, I have partnered up with top national designers that make the process turnkey for my clients and ensures them a top performing product. The difference in this portion of the execution can be $30k-$60k/yr more money in your pocket vs. that of our competition all other factors equal (such as the property size/location).

    Next, to drive costs down, I co-host (only for clients) at 15% which is 5-15% less than the large PM firms. This again puts another $6-$20k in my clients’ pockets and getting a more personalized and boutique experience rather than being just another number.

    Because I also own and buy actively, I also have the proven vendors that further save my clients money from insurance, landscaping, pest control, pool care, and handymen/hvac/plumbing/electrical.

    With all that in mind, there's a few different categories of property you can buy that maximize their returns. CoC returns of 15-25% can be had here based on what skills and or effort you put into the project. I have clients that like to be 100% hands off and I have others that will fly in and do their furnishing/design themselves and even some that self-manage out of state.

    [email protected]801-441-8891
    Impact Realty Tampa Bay.4.962 Reviews
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    Suncoast Vacation Homes4.959 Reviews
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    4Reply
  • Mindy Nicol
    Realtor · St Augustine, FL · Member since 2023 · 111 posts · 87 votes
    2y

    Hi Yiwei- yes, there are definitely cash flowing STRs if you are willing to put the time into revenue management and have a solid product, in a great location. It is not a cookie cutter answer, and really depends on the property, location and if you have consistent guest demand based on that. In most cases STR is the only thing that is cash flowing right now as it is hard for most LTR investors to get in at these rates. Let me know if you want to look at opportunities in NE Florida.

    Mindy  

    3Reply
  • Travis TimmonsPro Member
    Rental Property Investor · Ellsworth, ME · Member since 2021 · 1k+ posts · 2k+ votes
    2y

    Do. Your. Own. Research.

    Stop following the crowd and asking strangers on the internet and lean into what you already know. Or develop some sort of subject matter expertise. Otherwise, you're late to the party or following the advice of a stranger on the internet with something to sell.

    Lastly, it's a "what can you do that is really hard" market. Figure that out and you'll find your cashflow.

    11Reply
  • Monica Mejia
    Real Estate Agent · Denver, CO · Member since 2022 · 20 posts · 18 votes
    2y

    Hi Yiwei! I'm in the Colorado market and we're seeing that the median cash flow annually is about 20k - 30k. This profit ranges for price points around 650k +. 

    Feel free to send me a DM if you want more info on the CO market(: 

    0Reply
  • Zach Edelman
    Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
    2y

    Have seen plenty, it's just most of them are self managed to be honest with you. 

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

    Certain parts of Ohio are working out...but it all depends on the property and price you can get, not so much the area.

    [email protected]330-557-3021
    2Reply
  • V.G JasonPro Member
    Investor · Member since 2022 · 3k+ posts · 3k+ votes
    2y

    I have STRs in Asheville, NC, Savannah, GA, Angel Fire, NM. I have some in Texas-- South Padre & Marfa, Fredericksburg. West Palm Beach, FL. Some in Durham and Nashville, too.  Oregon Coast now officially too. Charleston later this year, and hopefully Smokies too. 

    All are cash flowing very well. Your question is misguided, though. 

    0Reply
  • Kilian Gordon
    Member since 2023 · 5 posts · 0 votes
    2y

    I help clients in the PHX/Scottsdale Arizona area and we are still finding cash-flowing STRs in the 7-8% COC range. They are typically around the 4-5 bedroom, $750k price point with some amenity/back yard touch-ups or 5-6 bedroom a little more turn-key around the $1m price point.

    This of course is a somewhat general answer and it is not one size fits all. Please feel free to DM me.

    0Reply
  • Julie Galbraith
    Member since 2023 · 1 post · 0 votes
    2y


    Quote from @Andrew Steffens:
    Quote from @Yiwei Cheng:

    I'm curious to know what locations you are seeing cash flow if buying at current interest rates (7.5-8%)?

    How much is the property, and what cash flow are you seeing?

    Thanks!


     Hi - I am based in Tampa.  There are still cash flowing opportunities at current rates and I am closing 2-3 per month for people like yourself.  Ill send you a DM :)

    Are you finding that the Tampa STRs are doing well even with the 7 night minimum ordinance?
    0Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    2y
    Quote from @Julie Galbraith:


    Quote from @Andrew Steffens:
    Quote from @Yiwei Cheng:

    I'm curious to know what locations you are seeing cash flow if buying at current interest rates (7.5-8%)?

    How much is the property, and what cash flow are you seeing?

    Thanks!


     Hi - I am based in Tampa.  There are still cash flowing opportunities at current rates and I am closing 2-3 per month for people like yourself.  Ill send you a DM :)

    Are you finding that the Tampa STRs are doing well even with the 7 night minimum ordinance?

     That ordinance is unenforceable due to 2014 statelaw, so we are renting all Tampa houses at 1 night minimum for 6 years with no issue at all

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    0Reply
  • Armani Colon
    Real Estate Agent · Stroudsburg · Member since 2022 · 15 posts · 9 votes
    2y

    Hi Yiwei - Absolutely.

    I help my clients in the Pocono's Pennsylvania area and i'm still finding cash-flowing STR's. We are seeing annual cash flow ranges from 15k - 25k on some of our managed properties.

    The highest performing properties are typically 5 bedroom +, luxury spaces or are new builds with great amenity's with updated outdoor spaces. Properties at this level are closer to 750k and above. 

    This is kind of a general answer. If you'd like to explore the Pocono's Market further, lets connect.

      0Reply
    • Joe Chirdon
      Real Estate Agent · Harrisburg, PA · Member since 2016 · 159 posts · 82 votes
      2y

      Just yesterday, I helped a fellow BP member go under contract on a STR in South Central PA. There are plenty of inexpensive homes within a 20-30 minute drive of Hershey (Hershey Park, Chocolate World, Concerts) and Harrisburg (State Capital).

      We were able to get the home under contract well below asking price. 

      0Reply
    • Mike Shemp
      Rental Property Investor · Stewartsville, NJ · Member since 2016 · 419 posts · 280 votes
      2y

      You might want to listen to some of the BP podcasts on some of the other ways that real estate "pays" you, outside of cashflow.

      Keith Weinhold from Get Rich Education also has a good podcast and regularly discusses the 5 different ways that real estate pays you.  It's worth a listen just to have the perspective of the other ways to factor into the decision making process.


      Hope that helps.

      Mike

      1Reply
    • Angelo Cortez
      Oakland, Alameda County · Member since 2022 · 40 posts · 29 votes
      2y

      I would recommend AirDNA for data. My ex-CPA has recommended buying a STR outside of California (I went against this and bought a 30 year-old build Sacramento and it is cash flowing as a STR/MTR hybrid). It doesn't fit the "20% rule" for STR's, but it is cash flow positive; the 3b/2ba is cashflowing around ~$400/month after PM fees + utilities.

      Lots of free info out there though - would recommend Googling "AirBnB Data Guy" where he gives his thought process in doing the analysis. 

      1Reply
    • Lindsay Tucker
      Real Estate Agent · Denver, CO · Member since 2024 · 19 posts · 5 votes
      2y

      100% recommend using AirDNA to get an idea for how much a property will be booked and cashflow. That said, it's always case specific. I have an STR in Kissimmee FL (Disney) that is about 90% occupied while the AirDNA average for that area is 55%. Do your research. Price it right. Rehab it right. Market it right. Make sure you consider not only what attractions are near by but also the saturation (or lack thereof) of short-term rentals. I have another STR outside of Morrison, CO, where Red Rocks is, and it absolutely crushes it. We can't keep people away from that one (because there aren't many STR options out here), and it's a much less luxury experience than the one in Kissimmee — where there is a major saturation. If you're worried about interest rates, I get it. Maybe try working with an agent who has access to off-market and wholesale deals that you can get for below market value and do a quick rehab. I do this for people in Colorado, and I'm sure you can find someone to do the same for you wherever you decide to land. Lastly, don't forget to look into STR legislation and what might be coming down the line for that area. In Colorado there's a lot in flux right now and STR legislation is changing all the time, so we have to stay on top of knowing what is potentially coming and how that will affect investors. DM me if you want to chat more! I love talking STR strategy. Best of luck!

      1Reply
    • Kilian Gordon
      Member since 2023 · 5 posts · 0 votes
      2y

      I am working with folks in the Scottsdale area who purchase properties around the $800k-900k range (5+ bedrooms with large lots) and remodeling to be purpose-built short-term rentals. Almost residential resorts. These can gross $200,000-$250,000 yearly. 

      0Reply
    • Cody Z.
      Real Estate Agent · Belmar, NJ · Member since 2017 · 370 posts · 200 votes
      2y
      Quote from @Yiwei Cheng:

      I'm curious to know what locations you are seeing cash flow if buying at current interest rates (7.5-8%)?

      How much is the property, and what cash flow are you seeing?

      Thanks!


      You should be asking what markets may work with a particular niche or idea.

      Also, in my opinion, STR's that are generic won't perform well for the most part. Think about what you can offer that's special or different to stand out.

      1Reply
    • Zachary Cain Humphrey
      Investor · KY · Member since 2022 · 204 posts · 77 votes
      2y

      Kentucky is the place for purchase price compared to revenue. Indiana has some great areas, TN in some areas, West Virginia. 

      Kentucky is my main focus and home state. I invest in the Red River Gorge STR market. There is also the bourbon trail in western ky. Feel free to message me for market details!

      1Reply
    • Sarah Vann
      Real Estate Consultant · Charleston, SC · Member since 2024 · 37 posts · 9 votes
      2y
      Quote from @Yiwei Cheng:

      I'm curious to know what locations you are seeing cash flow if buying at current interest rates (7.5-8%)?

      How much is the property, and what cash flow are you seeing?

      Thanks!

      There are plenty of opportunities in FL still. The criteria varies with each market.. for some markets it has to be a 3+ bedroom + pool,  for many places it's absolute gold to have at least a mother in law suite but best to have 2 or 3 small units, etc etc..There are a ton of seller finance opportunities here as well (not many actually advertise it but they're open to it once you chat with them). Message me if you'd like - I'm an agent in FL and happy to answer any questions or help you with your search!  
      1Reply
    • KiKi ChaseBusiness Member
      Real Estate Agent · Indianapolis, IN · Member since 2022 · 184 posts · 75 votes
      2y

      I may be biased, but Indianapolis, IN is a great place to start, especially for STRs! There are few growing neighborhoods in the area that are doing well in the STR space, and a few untapped markets that we predict could do well. I would love to have a conversation with you about it!

      Brentwood Collective54 Reviews
      View Page
      0Reply
    • Keagan Scott
      Realtor · Indianapolis, IN · Member since 2017 · 41 posts · 14 votes
      2y

      There are some great pockets in Indiana that are working well if you can find the right property. Certain pockets of Indianapolis are fantastic. Indiana Dunes up near Lake Michigan. Bloomington, West Lafayette and South Bend are all major college cities that can work with the right strategy. Lake Maxincuckee (Culver Military Academy) is also a sneaky good option. Would love to help if you're looking to buy here! 

      2Reply
    • Ian Potts
      Rental Property Investor · NJ · Member since 2024 · 1 post · 0 votes
      2y
      Quote from @Josh Green:

      I personally am buying and helping clients buy in the Tampa Bay Area for a few reasons:

      Here, you have a historically strong and consistent tourism presence, limited land/STR allowable areas, highly liquid property compared to selling a cabin in the woods, all 9 classes of visitors in the STR sector, and appreciation. Florida is projected to lead the country in net migration in the US and projects a 10% net increase by 2030 with Tampa leading that charge. The ratio of new jobs to new home starts is a staggering 2:1 making that growth sustainable. It's a jack of all trades here with little to no trade offs/cons when comparing apples to apples to other large STR markets.

      The key to success here though comes in the knowledge and execution. Buying the right property type, location and price are half of the equation. The other half is: excellent finished product design and management at a reasonable cost.

      As an investor and agent here, I have partnered up with top national designers that make the process turnkey for my clients and ensures them a top performing product. The difference in this portion of the execution can be $30k-$60k/yr more money in your pocket vs. that of our competition all other factors equal (such as the property size/location).

      Next, to drive costs down, I co-host (only for clients) at 15% which is 5-15% less than the large PM firms. This again puts another $6-$20k in my clients’ pockets and getting a more personalized and boutique experience rather than being just another number.

      Because I also own and buy actively, I also have the proven vendors that further save my clients money from insurance, landscaping, pest control, pool care, and handymen/hvac/plumbing/electrical.

      With all that in mind, there's a few different categories of property you can buy that maximize their returns. CoC returns of 15-25% can be had here based on what skills and or effort you put into the project. I have clients that like to be 100% hands off and I have others that will fly in and do their furnishing/design themselves and even some that self-manage out of state.


       Where are STRs legal in Tampa though? No where near metro if I am not mistaken. I know there's some unincorporated in Pinellas County, but I know of none in TB proper...

      0Reply
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