Seeking Advice - Fully Furnished STR Purchase

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Seeking Advice - Fully Furnished STR Purchase

Member since 2025 · 11 posts · 6 votes

I'm looking to invest in my first STR. One property I am considering has strong STR history, was completely renovated four years ago and comes fully furnished. I'm trying to get a property up and running in 2025 in a location that is a 3-hour flight from my home. How much of a premium (If any) would you put on an investment that is plug and play vs. starting from scratch? What percent of home price would you attribute to high quality furnishings and strong rental history?

Thanks much!

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Mike GrudzienPro Member

Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes

Do you somehow get to "keep the history, the ratings, the reputation, the reviews and future bookings"?
Otherwise, you are just buying real estate and furniture. Given, it's probably in a good market and run correctly, you should be able to rebuild a 5 Star business if you are on top of your game.

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Mike GrudzienPro Member
Lender · Eugene, OR · Member since 2019 · 2k+ posts · 1k+ votes
1y
Do you somehow get to "keep the history, the ratings, the reputation, the reviews and future bookings"?
Otherwise, you are just buying real estate and furniture. Given, it's probably in a good market and run correctly, you should be able to rebuild a 5 Star business if you are on top of your game.
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Ian Tyndall
Investor · VA AZ, SC · Member since 2017 · 173 posts · 172 votes
1y
Nancy,
I have purchased 3 of 4 STRs that were furnished. I personally put a premium of my time on these but don’t communicate that to the sellers. In every case I end up redesigning the property and replacing stuff, but it is a lot easier than starting from scratch. I budget about $8,000 per room, so getting everything thrown in to start is a good way to save some money and time. If the house is really well designed, then you can add in more.
What I have typically done is just add a Personal Property Bill of Sale for all possessions as seen in the MLS photos for $1.
On one property we reduced the purchased price but did a $15k bill of sale given there was a lot of design and upgrades that went with the house. This helped with our lender at the time.
Feel free to send me a direct message if you specifics of your deal that you would want a second opinion on, and I would be happy to take a look. Good luck!

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James Carlson
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
1y
Like Mike said, unless you can keep their account and reviews, the "premium" is minimal.

My STR investors here in Colorado buy furnished properties all the time, but I advise them to buy the property based on the comparable properties just like anything else. And then they pay for the furniture outside of that ... usually around 25-35% of new-furniture cost.

Now, there are other ways to structure the purchase of a short-term rental to include the cost of the furniture without buying outside of the contract, but in the end, there's just not a lot of value in a turnkey vacation rental without the reviews. (And even then, you should be able to rebuild quickly anyway.)
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Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
1y
Hey @Nancy Franco, there is no premium price for an operating turn key STR. At least as far as lenders are concerned.
The property is worth what other comps in the area say it is worth.
I did a survey of about 8-10 different lenders across the board and the answer was the same in all cases.
So, you can pay the premium, but it will come out of your pocket vs the mortgage.
You can also look at a DSCR loan but still, the house is worth what the comps say but the purchase will be based on the revenue of the STR.
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Nancy Franco
OP
Member since 2025 · 11 posts · 6 votes
1y
@Mike Grudzien I do not keep the history or ratings, but the future bookings will convey with the property.
The reason I am considering this is to fast-track the property to market since I do not live in state and want to get something up quickly. I really like the aesthetics of the STR and do not have interior design experience. So, looking for an "easy" button, I guess!
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Brendan Mullenholz
Real Estate Agent · Washington, DC · Member since 2025 · 157 posts · 77 votes
1y
Like everyone said, the premium is in the eyes of the buyer. It won't affect the value of the home on an appraisal level. Buying a STR with a portfolio is really clutch in growing it quickly. With a new STR with no portfolio you can start off on it's own vibe and character to build the portfolio. Don't forget to ask for feedback and suggestions on the property.
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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
1y
At the end of the day the numbers have to work on a turnkey place or a place that you have to get ready to be a STR.
A bank will only value it per what the comps say it's worth. It's not worth any more.
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Nancy Franco
OP
Member since 2025 · 11 posts · 6 votes
1y
Thank you @John Underwood! Appreciate your insight.

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Andrew SteffensBusiness Member
Tampa, FL · Member since 2022 · 4k+ posts · 3k+ votes
1y
I represent a lot of buyers and I do communicate the value of turnkey - its worth about $20/ft hard cost, and about 2 months of mortgage payments/opportunity cost and whatever you value dozens of hours of your own time.
Strong rental history is good but I do not place a ton of weight on that. STR's are only as good as how they are managed. Even if rental history is less than stellar as long as strong comps exist I know what it is capable of.
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Allen Bosbyshell
Investor · Member since 2020 · 16 posts · 5 votes
1y
A property being fully furnished and turnkey can save you time, but you’re the one who will make it consistently profitable.

Focus on the numbers: cash flow, occupancy, expenses, and long-term appreciation. The turnkey setup is nice, but your edge always comes from operations
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