STR Viability in 2025 Onward
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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votesIn 2025 STR's range from very viable to not viable at all. It depends on market, location, cost, ADR and a bunch of other factors. In 2021 for example (and using my home market of Tampa metro) you could buy almost any property that is legally zoned for 1 night rentals and make money. It could be inconveniently located, poorly furnished, and not renovated and it would rent and be profitable. In 2025 that same property would not rent at all. In 2025 you need to have an aesthetically pleasing, well furnished unit in a desirable location. Your profit will likely be modest but its a marathon and not a sprint.
Good luck!
Vacation Rentals of Florida53 Reviews
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- 1yCollin HaysBusiness MemberProperty Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
I can't speak to the tax situation, but I wouldn't make an investment decision based on that, regardless.
Short Term Rentals are still very viable. If you have the cash to buy one outright, there are some really good yields out there right now. If you are borrowing a chunk of it at 7%, that's going to cancel out your yield and possibly put you in the red each month. That isn't such an awful thing, though. I bought my first cabin in 2005, putting 20% down, and it was monthly cash flow negative for five years. But as time goes on and rents inevitably rise, it has been a fantastic investment. It has also tripled in value.
Stocks and real estate should be viewed as long term investments. Viewing them in the short and medium term becomes quite risky, as I've watched my own stock portfolio shrink by 25% in the last three weeks.
- 1yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
In 2025 STR's range from very viable to not viable at all. It depends on market, location, cost, ADR and a bunch of other factors. In 2021 for example (and using my home market of Tampa metro) you could buy almost any property that is legally zoned for 1 night rentals and make money. It could be inconveniently located, poorly furnished, and not renovated and it would rent and be profitable. In 2025 that same property would not rent at all. In 2025 you need to have an aesthetically pleasing, well furnished unit in a desirable location. Your profit will likely be modest but its a marathon and not a sprint.
Good luck!
Vacation Rentals of Florida53 Reviews - 1yRyan MoyerBusiness MemberProperty Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
They're still very viable, they're just not the "buy literally anything and make instant huge cashflow with little effort" thing they were coming out of the pandemic where you could throw a dart at the MLS and get 80% cash on cash. That's never coming back.
This is a normal cycle for a new investment vehicle. Previously STRs were thought of as risky, there wasn't much info about the actual financials behind them or what it took to run them, how to underwrite them, etc.
The more risky and less populated an investment vehicle is, the better the returns are.
Now the secret is out, everyone knows about it, it's super easy to find info on how to do it, how to underwrite for it, etc. It's become closer to a more traditional investment vehicle. Generally safer, more populated, lower returns.
Like traditional real estate, it's all about the deal, about knowing what you're doing, about having an edge. You can just blindly buy any random thing and prosper. Those days are over. Forever. Some people think it's just an economic cycle and we'll get back to 2021/2022 markets one day, but we won't. Too many investors are involved now.
Every investment vehicle goes through the same thing. The people doing LTR now will never make the same kind of money as LTR investers 30 years ago with the same kind of ease. Crypto investers now will never make the same kind of money as people that bought Bitcoin for under $1 when most people had never heard of it. The key to fast easy you-can't-fail money like we had a few years ago is getting in before everyone knows about it. That time has passed for STRs.
But as a traditional investment/real estate vehicle, where it's about finding the right deal, having more modest long-term expectations, etc, it's still extremely viable and arguably still much more lucrative short term and long term than LTR if you do it right. But again, that just doesn't mean buy whatever. That means finding a deal, knowing what you're doing, creating an edge.
Cosmic Vacations4.9174 Reviews - Property Manager · Chattanooga, TN · Member since 2018 · 175 posts · 134 votes1yWhere is your triplex? Have you considered turning one of the three units in your triplex into a STR? Perhaps you have a unit coming up for rent, and you could dip your toe in by converting it from an annual rental into a STR. You could learn a lot without taking on much risk and you'd be right next door, so you could keep a close watch on it and even potentially do the turnovers yourself to earn the cleaning fee—just a thought. If you want to post or DM me the address, I can send you some revenue projections or comps.
Quote from @Andre Lai:
Hello all,
New here and trying to learn different real estate strategies. I currently own a triplex that I am house-hacking. I've been looking into Airbnb for years but never pulled the trigger. What is the current viability of it now? Especially with the high likelihood that 100% bonus depreciation will be coming back.
- Member since 2025 · 8 posts · 7 votes1y
Quote from @Tyler Divin:
Where is your triplex? Have you considered turning one of the three units in your triplex into a STR? Perhaps you have a unit coming up for rent, and you could dip your toe in by converting it from an annual rental into a STR. You could learn a lot without taking on much risk and you'd be right next door, so you could keep a close watch on it and even potentially do the turnovers yourself to earn the cleaning fee—just a thought. If you want to post or DM me the address, I can send you some revenue projections or comps.Quote from @Andre Lai:
Hello all,
New here and trying to learn different real estate strategies. I currently own a triplex that I am house-hacking. I've been looking into Airbnb for years but never pulled the trigger. What is the current viability of it now? Especially with the high likelihood that 100% bonus depreciation will be coming back.
It's located in San Jose, CA. I bought it as a single family home and turned it into a triplex. If I rent out all units then I'm a little over breakeven of PITI but I'm still paying back the money I borrowed to do the renovations. STRs in my neighborhood would net less than a LTR for various reasons (location, market, room type, etc.)
This is an appreciation market so I'm happy with breakeven but can't help but feel the money would be better spent elsewhere. I'm still a beginner and this was my first purchase.
I plan on doing a live-and-flip and sell next summer where I will pay off my debt, do another live-and-flip, and maybe get an out-of-state property too.
- 1yJosh GreenBusiness MemberRealtor · Tampa/St Pete/Clearwater/Bradenton · Member since 2020 · 396 posts · 353 votesMy team and I are buying STRs frequently - as long as you have the right people+knowledge in place it’s simply the most lucrative (that I can find anywhere) real estate investment strategy and ROI that doesn’t involve 7+ digits of cash. Taxes are due annually - rather invest to keep my taxes down and create passive cash flowing real estate with the appreciation upside!
Quote from @Andre Lai:
Hello all,
New here and trying to learn different real estate strategies. I currently own a triplex that I am house-hacking. I've been looking into Airbnb for years but never pulled the trigger. What is the current viability of it now? Especially with the high likelihood that 100% bonus depreciation will be coming back.
I also operate in the Tampa Bay market - mostly Pinellas county (Clearwater, Largo, Seminole, St Pete, etc) and we’re making great returns with Todays rates, todays prices, and todays competition.
There’s three critical components to making this a success for myself and for my clients:
1) Buying the right properties at the right price points with the right locations and features
2) Budgeting for, and executing a professional finished product through a professional design and furnishing team with proven track record of success
3) Boutique property management to ensure your property is taken care of, continues to perform long term, and puts more money in your pocket by passing on the efficiency savings back to you (I charge 15% for clients only; at least at the time of this post)
biggest caveat:
You have to have an adequate cash position to make this work well. For clients who are out of state or otherwise wanting to be completely hands off, this means a cash budget minimum of $225k is recommended (20%-25% downpayment, closing costs, design and furnishing costs) and even better opportunities if you have more. Any less, and you are likely over leveraging, or not budgeting to create a great STR; which is how you fail as an STR investor. OR, you need to be very involved - 100-200 hours of time to self furnish/design/manage etc.
This can seem like a high barrier to entry for most newer investors, and it is, but that’s a part of why it’s lucrative. Much like running a business, you want to have the high barriers of entry - keeps the competition down and you more profitable 👍
If you or someone you know is ready per the above and wants to explore more the process and numbers, feel free to DM me and we can do an introductory consultation for free. I don’t like to blurt on here publicly the numbers or details as I’m also an active buyer (buying 2 more this year personally) and want to keep the business with those I trust and want to work with ✌️
Impact Realty Tampa Bay.4.962 Reviews
Suncoast Vacation Homes4.959 Reviews - Leander TX · Member since 2020 · 179 posts · 150 votes1y
Have you considered MTR (medium term rentals / furnished rentals)? Here in Round Rock (outside of Austin), we put our SFH (3bed/2bath) on Furnished Finder and had an excellent year in 2024. This year is shaping up pretty good as well. It was rocky at first and had it on Airbnb (end of 2023) but then we were able to go full MTR 2024 forward.
Search Furnished Finder for your San Jose market and see if there's a demand there. The beauty of what you're attempting is that STRs and MTRs are both furnished rentals so you can try both.
- Property Manager · USA · Member since 2018 · 85 posts · 50 votes8mo
How many bedrooms in the Triplex? I used to manage one, didn't have the best experience. But again, the owners were slumlords...
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