2025 STR Market

[Ed Troyano]

Hello,

I’m 24yrs old with no assets living at home after graduating from college in 2024, currently making $114k/yr at my full time job. 

My brother is still in college with no income but together we have a combined savings of $150k and would like to put it towards an investment property

We've been wanting to enter the STR market for about a year now, but have struggled finding the right market. Our goal is to scale a business and roll our profits and personal income into the next asset, into the next, into the next, etc……

The St. Augustine FL STR market was being whispered in our ears with inflated revenue potential. Having taken a trip down there and doing our own due diligence, we now realize this. Within this market, heightened home values and moderate revenues, coupled with high interest rates, it's very difficult to find anything that cashflows.

Our parents operate an STR in Maine, not as a profitable business, but as a way to offset expenses on an appreciating vacation home. We are familiar with the space, just not sure where to look for a less seasonal market that accommodates our price range.

We were approved for various financing options in the St. Augustine area…

- 10% down 2nd home up to $500k

-10% down 2nd home up to $675k (with a cosign)

- 20% down conventional up to $650k (could increase with a cosign)

-Various DSCR programs with a $150k max cost to close

In our opinion, our best path is to put as little down as possible to preserve capital incase of property emergency and to move faster towards our next property. 

Hoping someone can offer advice and help point us in the right direction in this 2025 market. Maybe STR isn't the answer for us to build passive income right now, but I don't see single family long term providing the cashflow we're looking for.

Thanks

[JooYung Choi]

I would look for vacation destinations with established short term rental regulations.

STRs are still profitable in 2025, as long as you are aiming to be in the top 10%. Anything less and you will not be as profitable as you think. This means superhost status, guest favorites, consistent 5 star reviews, etc. On top of that, you should be using automation tools like price labs and hospitable to effectively run your business.