Is anyone still expanding the portfolio of STRs?

Question

Would love to connect with someone that is expanding their portfolio of STRs in today's market. I have heard lots of stories from people that have acquired STRs and has shifted to STR management or other services to this industry, but I'm really struggling to find a mentor that knows how to navigate today's market and add profitable STRs to their portfolio and is actively doing so. Is anyone on this forum currently an active STR acquirer/builder? Having success in doing this?

Collin Hays · Answer

In the Smokies, there are far more sellers of STRs than buyers. I suspect this is the case throughout the country.

I am always a buyer if the deal is right. A couple of my all-time best deals were bought in precisely the peak of the overall market. The moral to that story is, you are only looking for one deal.  I tend to get myself in trouble when I go searching for deals - stretching proformas, trying to force something, etc. It's like waking up one day and deciding "Gee, I think I'll invest in the stock market today."

If you stay watchful and ready, the good deals will come to you.  Anxiousness leading to a bad deal can really set your financial future back.

James Carlson · Answer

The right STR property is always a good buy.

The short-term rental market, at least here in Colorado, has birfurcated. You either go:

-- Small and unique couples getaway. Think cool A-frame with awesome amenities.

-- 5br+ vacation rental for big groups.

The good-enough but bland 3br cabin just doesn't cut it anymore. My two cents, at least.

Mike Grudzien · Answer

I heartily agree with Collin.  It's not the MARKET, it's the DEAL.  It's all about the numbers.

Dan H. · Answer

We Placed an offer today on a cabin that if the offer is accepted will be an STR.

The underwriting on this purchase is leaner than any property that I have ever purchased.   So why did I make an offer?

- RE is challenging everywhere

- the itch to purchase got over whelming.

- it is a nice luxury cabin in the sierras.   The area has a lot of giant sequoias including one of the biggest in the world, a nice river, a cute little town, and I know a very competent (understatement) co-host that serves that area.

- it is near turn key.  This is a rarity for my purchases.   With greater effort/risk I should get greater return.  This being near turn key, it should have lower return.

- my family can use it and if the $hit ever hits the fan, we have a place to escape to.

This definitely is not a home run purchase.  My underwriting shows IRR after a couple years that exceeds the S&P lifetime by an ok margin.  More of a base hit on a luxury cabin that I will be proud to own.

In addition most people consider my underwriting conservative (I consider it slightly conservative). For example, I used $500/month maintenance/cap ex which I consider my best estimate but most would consider conservative.

Expected stabilized monthly rent ratio is 2.1% (yearly 25.3%).  As indicated it is a tough market so in this market, I consider this pretty good in a location I want to own.  I would definitely pass if this was not a location that I want to own or if I did not have a good co-host in that area.

Good luck

John Underwood · Answer

Me too. I'm always looking for a deal.

Andrew Steffens · Answer

I had 9 coming out of COVID and did consolidate to 5 total STR's now.  I have not acquired in about 2 years but am not opposed to it (in my market - Tampa there still is cash flow to be found).  I think I'll look to acquire 1 before the year is out for the tax advantages.

Arman Ahmed · Answer

@Austin Fowler

Yeah, it’s definitely getting tougher, but some people are still adding STRs. The key I’ve seen is buying in areas with steady year-round demand, running numbers with conservative occupancy, and making sure the deal still works as a long-term rental if needed. That way you’ve got a solid backup plan if regulations or market shifts hit.

Are you mainly looking at vacation spots or city markets?

Michael Baum · Answer

Like everyone else said, it isn't the area as much (location location location still applies) but the deal itself.

Michael S. · Answer

@Austin Fowler - I bought my first out of state STR with a business partner in November of last year.  It's been performing so well that we agreed to watch for the next opportunity, which presented itself last month - we haven't finished getting it ready yet, but we should have it active by next month.  Might consider a third STR in this location in 2026 as well.

So we are not systematically buying STRs - but if the right opportunity shows up, we will pursue it.

Andrew Street · Answer

Hi Austin! I can relate - it’s been challenging to add new STRs in today’s market with higher costs and tighter competition. I’ve been focusing more on making the properties I already have perform better while still keeping an eye out for the right opportunities. Happy to connect!

Is anyone still expanding the portfolio of STRs?

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