The Opportunity That No One is Talking About in Short Term Rentals...

[Blake Anthony Carter]

I keep seeing everyone chase downtown locations or big luxury cabins in the mountains, but there’s a pocket of the market around Austin that’s been flying under the radar and that is... the suburbs.

We’ve been picking up properties just outside the city limits and the numbers are wild. Here’s one we ACTUALLY did:

- Purchase price: $550k

- Improvements + furnishings: $60k

- First year revenue: $140k 

That’s not a typo. $140k on a friggin $550k purchase.

Now obviously it's not just "buy anything and throw it on Airbnb." You have to know what to look for regarding layout, zoning, neighborhood vibe, STR friendliness, and the type of groups that want to stay there. But when you line it up right, these suburban homes are outperforming a lot of the "prime" city locations on cashflow. I also believe that the resellability of these properties are way better.

What’s interesting is that the guests booking these aren’t looking for nightlife downtown and the wear & tear is lower. They want space, parking, privacy, and still a short drive into Austin, the lakes, wedding venues, etc. Families, groups of friends, even corporate retreats. It’s a different demand pool.

I'm seeing some of the best numbers in certain pockets right now with the right properties, and honestly, I think this is one of the biggest missed opportunities in the STR space that no one is talking about.

Curious if anyone else is looking at suburbs in their market?

[James Carlson]

That's true for STRs in Denver as well, but for a different reason. 

The city of Denver doesn't allow for non-owner occupied short-term rentals. But there are still a few cities immediately adjacent to the city that allow for investment vacation rentals. 

I just had someone close on a nicer new-build townhome 15 minutes outside downtown Denver for about $200k less than it would have cost in the heart of the city, and they're blowing it out with design and amenities.