How does anyone afford to purchase an STR?!

How does anyone afford to purchase an STR?!

Real Estate Agent · Charleston, SC · Member since 2013 · 424 posts · 99 votes

So, I know airbnb arbitrage as it's so called is hated here but I will agree to disagree. I've looked at the idea of purchasing an STR either by an FHA loan on a multifamily and renting out the other units in a mix of short/long term but that seems tough in tourist driven markets. Otherwise 20% down when homes are at $400-$500k in some of these markets seems impossible. Do most people BRRRR or Fix N Flip their way to this kind of liquid cash and then make the purchase? The cash flow seems better than on arbitrage and you have more options and exit plans but 20% these days is no small feat.

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Collin HaysBusiness Member
Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes
1y

I don’t recommend RE until you have $100K in your account.  Be patient, save, and invest in a good index ETF.  Shortcuts could be very risky and set you back a decade.

It takes a while but you’ll get there.  When you reach $100K, you have something to work with. 

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