If you were to start now, where would you choose?

Question

If you were to have 60K capital ready to deploy and wanted to get into STR where would you look for properties?

JD Martin · Answer

If all I had ready to deploy was $60k I'd put it somewhere until I grew it to a more substantial number. $60k doesn't buy a whole lot these days that's not going to come with a pretty substantial amount of risk.

Jeff Langley · Answer

Some of my best STR’s are not my million dollar national park homes…. But the Midwest duplex in a good school district neighborhood. It amazes me how much random transient travel it gets(bowling tournaments, pawn shop remodels, manufacturing employees, traveling photographers, etc).

John Underwood · Answer

@Sino U.

I would save more money or look into a DSCR loan.

Where is important. I would pick a major tourist destination where it wasn't saturated with STR's already.

That would take some research but you could google top vacation destinations and find a place you would go on vacation.

Next is picking the right property. Views, location to attractions and layout of property can make or break you in a good location or not so great location.

Jeff Langley · Answer

I would look for a side by side duplex in a Midwest metro that either has a strong plan B(long term) or can rent one side LTR and one side STR.

Jon Martin · Answer

Agreed. . . . Occupancy can be off the charts in places like this because there is so much activity or reasons for people to visit during what would be slow days of the week and off season months.

Plus the bar tends to be much lower, so it is much easier to stand out. With a lower entry point you can really push some spicy numbers, especially with 5+ bedrooms.

Collin Hays · Answer

I'm always bullish on the Smokies.

Lauren Ruppert · Answer

I need the real story on vacation rentals on The Big Island, HI...specifically the Kona area. What are the cleaning and management costs? What are the pitfalls that I may not be aware of?

Does a 1 bedroom get as much traction as a two bedroom?

What's the deal with 'land lease'...should we steer clear? It seems common.

Any and all advice would be appreciated!!!!!

Remington Lyman · Answer

It is likely the cheapest city I can find. You might spend between $5,000 and $20,000 on furnishing the unit, depending on your choices. That will leave you with limited funds to actually purchase the house.

Andrew Steffens · Answer

You can get a second home loan 10% down and look for a turn key property in FL. I just closed on yesterday that is in Clearwater and closed for $660k with all furnishing and it projected to do over $90. Also got almost all of the closing costs paid by seller.

If you were to start now, where would you choose?

If you were to start now, where would you choose?

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