Updated about 1 year ago on . Most recent reply
6 month STR season
I am looking purchasing my first STR in the Upper Peninsula of Michigan. There are areas that restrict rentals to 6 months out of the year. Would this turn any investors away?
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#2 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Rental Property Investor
- Ellsworth, ME
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#2 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Rental Property Investor
- Ellsworth, ME
We make 90% of our booking revenue in Maine from May to October. I'm sure you'll find the same in the UP. I'm fine with a low overall occupancy number if my gross revenue is where it needs to be.
I like the seasonality. By the time I am sick of self management, the offseason comes and I get a break. The house also gets a much needed break as well. Trust your underwriting. If you can get the return you'd like with 6 months of rental, go for it. I don't love it, but if I could make a 20% cash on cash return (or the return of your liking), I'd pull the trigger.