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

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Blake Anthony CarterBusiness Member
OP
Real Estate Agent · Austin, TX · Member since 2020 · 101 posts · 47 votes
1y
Quote from @Andrew Steffens:

In Tampa its all "suburbs" there are no opportunities in DT but 10-15 mins provides a wealth of opportunity. I have one U/C for a client near the stadium that is $560k and revenue projection at $120k+

Freaking great numbers!
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James Carlson

Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes

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.

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Blake Anthony CarterBusiness Member
OP
Real Estate Agent · Austin, TX · Member since 2020 · 101 posts · 47 votes
1y
Quote from @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.

Super interesting. I haven't looked into the Denver market a ton but have heard that it is harder to navigate so I am sure there is a ton of value when you can find the right property to STR that isn't owner occupied.
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James Carlson
Real Estate Agent · Colorado | stan.store/JamesCarlson · Member since 2014 · 2k+ posts · 2k+ votes
1y
Quote from @Blake Anthony Carter:

Quote from @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.

Super interesting. I haven't looked into the Denver market a ton but have heard that it is harder to navigate so I am sure there is a ton of value when you can find the right property to STR that isn't owner occupied.

Yeah, it makes me think of the pros and cons of areas that are totally open to STRs and areas that have a patchwork of regulations.
In my preferred world here in Colorado, I actually like an area that allows for short-term rentals but is surrounded by areas that don't. Wheat Ridge, outside of Denver, is one example (and Arvada). Blue River, just south of Breckenridge, is another example -- really the only area left near the hottest ski resort that still allows unfettered vacation rentals.
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Mike GrudzienPro Member

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

Great topic. And these gems have always been there, if you are willing to understand your markets, demographics and local rules and regs.

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Joe S.Pro Member

Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes

Quote from @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?

We’ve been picking up properties

Is this you personally or is this your client/clients. Are you self managing or are you managing for other people?

Blake Anthony CarterBusiness Member
OP
Real Estate Agent · Austin, TX · Member since 2020 · 101 posts · 47 votes
1y
Quote from @Joe S.:
Quote from @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?

We’ve been picking up properties
Is this you personally or is this your client/clients. Are you self managing or are you managing for other people?
Both. We are investors and also run a STR sales & mgmt team in Austin.
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Marc Shin

Member since 2024 · 179 posts · 76 votes

@Blake Anthony Carter when you say short drive, about how many minutes are talking? 5-10 min drive or 20-30 min drive?

Blake Anthony CarterBusiness Member
OP
Real Estate Agent · Austin, TX · Member since 2020 · 101 posts · 47 votes
1y
Quote from @Marc Shin:

@Blake Anthony Carter when you say short drive, about how many minutes are talking? 5-10 min drive or 20-30 min drive?

Anywhere from 20-40 minutes depending on the property
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Collin HaysBusiness Member

Property Manager · Gatlinburg, TN · Member since 2020 · 3k+ posts · 4k+ votes

[email protected]806-672-7102

There's always a bull market somewhere!

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Gregory SchwartzBusiness Member

Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes

[email protected]443-812-0357

$140k is a solid topline number—we see similar numbers here in College Station. Everyone likes to brag about gross income, but what’s the net on a property like that?

I do like what you’re highlighting. We’ve been focused on clean, comfortable 2-bedroom MTR units here. For a fourplex, gross is usually around $2k per unit per month, with net cashflow after debt typically $500–$700.

Schwartz Realty Group5118 Reviews

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Blake Anthony CarterBusiness Member
OP
Real Estate Agent · Austin, TX · Member since 2020 · 101 posts · 47 votes
1y
Quote from @Gregory Schwartz:

$140k is a solid topline number—we see similar numbers here in College Station. Everyone likes to brag about gross income, but what’s the net on a property like that?

I do like what you’re highlighting. We’ve been focused on clean, comfortable 2-bedroom MTR units here. For a fourplex, gross is usually around $2k per unit per month, with net cashflow after debt typically $500–$700.

Love that strategy! Net is around 25-30k.
1 Reply
Gregory SchwartzBusiness Member
Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
1y
Quote from @Blake Anthony Carter:

Quote from @Gregory Schwartz:

$140k is a solid topline number—we see similar numbers here in College Station. Everyone likes to brag about gross income, but what’s the net on a property like that?

I do like what you’re highlighting. We’ve been focused on clean, comfortable 2-bedroom MTR units here. For a fourplex, gross is usually around $2k per unit per month, with net cashflow after debt typically $500–$700.

Love that strategy! Net is around 25-30k.

Nice. Similar to what we’re seeing in our fourplexes.
[email protected]443-812-0357
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Joe S.Pro Member
Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes
1y
Quote from @Blake Anthony Carter:

Quote from @Gregory Schwartz:

$140k is a solid topline number—we see similar numbers here in College Station. Everyone likes to brag about gross income, but what’s the net on a property like that?

I do like what you’re highlighting. We’ve been focused on clean, comfortable 2-bedroom MTR units here. For a fourplex, gross is usually around $2k per unit per month, with net cashflow after debt typically $500–$700.

Love that strategy! Net is around 25-30k.

Net is around 25-30k
Is the net of 25 to 35K with you self managing?
1 Reply

V.G JasonPro Member

Investor · Member since 2022 · 3k+ posts · 3k+ votes

Net income is $25k? That's the number you need to include in the first post.

We're not missing anything, you're buying barely-desirable property(likely above market rate) and optimizing it. Good for you on the latter, but the former is what we focus on and it has a lot more downside than upside. Real estate's emphasis on location cannot be overlooked.

Gregory SchwartzBusiness Member
Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
1y
Quote from @V.G Jason:

"you're buying barely-desirable property(likely above market rate)"
This is a bold assumption and a big dump on his parade. I don't think Blake said anything about "barely-desirable properties" or what he paid. Plenty of great, very desirable homes within 30 minutes of Austin.
[email protected]443-812-0357
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V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
Quote from @Gregory Schwartz:

Quote from @V.G Jason:

"you're buying barely-desirable property(likely above market rate)"
This is a bold assumption and a big dump on his parade. I don't think Blake said anything about "barely-desirable properties" or what he paid. Plenty of great, very desirable homes within 30 minutes of Austin.

Nothing bold about it. If he paid $550k on the outskirts, it's a definitely over market value and the best parts of Austin are in Austin-- and that's in correction territory. He's optimizing it, good for him.
But STRs are just hospitality on top of RE. The crux is still going to be the quality of the location you bought and the price you paid. Both of which appear to be subpar on this one.
This is like my STR in the outskirts of Raleigh; it's doing excellent, but it's not a better asset or investment than any of my primo Raleigh or Durham one's. But I sure as hell did not pay above market value for it.
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Nick MehlPro Member

Architect · Member since 2017 · 28 posts · 9 votes

So a net income of $25K on a $160K upfront investment (20% down + $60K in furnishings)? It's okay but not knock-it-outta-the-park numbers. Still, I'm not surprised that the burbs are rocking it in certain places like Austin and Denver where the regulations in town are pretty tight.

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Gregory SchwartzBusiness Member

Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes

[email protected]443-812-0357

Oh... Austin is basically Raleigh, a city 1000 miles away in a completely different state.

@Blake Anthony Carter sorry, I guess you overpaid haha.

Keep up the good work, sounds like you're building a great business, and there is no doubt in my mind that you are buying great deals.

Schwartz Realty Group5118 Reviews

V.G JasonPro Member
Investor · Member since 2022 · 3k+ posts · 3k+ votes
1y
Quote from @Gregory Schwartz:

Oh... Austin is basically Raleigh, a city 1000 miles away in a completely different state.

@Blake Anthony Carter sorry, I guess you overpaid haha.

Keep up the good work, sounds like you're building a great business, and there is no doubt in my mind that you are buying great deals.

Guess you're unable to understand an example. Using Raleigh and a suburb near(say Garner or Knightdale) it is to what suburb Blake bought and Austin. Get it?

Doesn't surprise me, you've always been one of the slowest people on this board.

Funny thing is-- I am Austin based too. How bizarre, an investor like me can make such a comparison given my perspective.
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Gregory SchwartzBusiness Member
Rental Property Investor · College Station, TX · Member since 2016 · 1k+ posts · 1k+ votes
1y
Quote from @V.G Jason:

That got very personal really quick. You almost hurt my feelings. My therapist will hear about this during this week's session for sure.
[email protected]443-812-0357
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Jared Martz

Rental Property Investor · Myrtle Beach · Member since 2019 · 38 posts · 25 votes

Good stuff here, I personally travel for work and live in Airbnb's for month+ at a clip. I work in the suburbs mostly building for townships or new developments around the country. The house’s typically are very nice and numbers are always very good for the owners whenever I snoop around the numbers in the area.

Matt Mertz

Leander TX · Member since 2020 · 179 posts · 150 votes

We're netting almost 20k on our SFH 3bed/2bath (advertised as 4bed) in Pflugerville (just outside Austin). It's an MTR renting for $3200/mo but it has no mortgage. We're happy but illustrates how tough it is to turn a profit. Property taxes are the highest expense for us in TX.

Jackie Carmichael

Lender · Hinton, WV · Member since 2025 · 128 posts · 53 votes

Love this perspective — you’re absolutely right that the suburbs around major metros are quietly outperforming a lot of the downtown “trophy” spots. Families and groups want drive-in convenience, space, and parking — not just nightlife access.

What’s interesting is the resale angle you mentioned. A suburban home has way more exit strategies (retail buyer, long-term rental, or STR), versus a giant luxury cabin that only makes sense as a short-term play. That flexibility is underrated in today’s market.

I’ve also seen that the guest quality is higher in these suburban markets — less wear-and-tear, longer stays, and fewer party headaches. Curious if you’re leaning more toward wedding/venue-driven demand or family-travel-driven demand when you pick these

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Laura Winters

Member since 2021 · 124 posts · 87 votes

If you can imagine, that is what early Airbnb hosts had for tossing blankets on the $300 Costco mattresses. The issue with the suburban market is that the moment any competition starts, your market becomes extremely saturated, and there is nothing you can do. Also, often small cities ban STR in just a meeting.

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Jules Aton
MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
1y
Quote from @Laura Winters:

If you can imagine, that is what early Airbnb hosts had for tossing blankets on the $300 Costco mattresses. The issue with the suburban market is that the moment any competition starts, your market becomes extremely saturated, and there is nothing you can do. Also, often small cities ban STR in just a meeting.
Agree especially about the risk of new regs in suburban areas. This is why I pay the premium to be walking distance to the beach. Property tends to stay full in season and it is highly unlikely they will do anything to interfere with the local tourist economy.
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Anja Schaer

Investor · Atlanta · Member since 2022 · 146 posts · 72 votes

Hey Blake. Really solid point about the suburbs being overlooked. Families, groups, and even corporate stays often prefer space, parking, and convenience over nightlife, and that usually means longer stays, less wear-and-tear, and fewer party issues. Plus, the resale flexibility is huge compared to “trophy” STRs downtown or in the mountains. Are you mostly leaning into family/group demand, or do wedding/venue-driven bookings play a big role too?

Erika Albert

Real Estate Broker · Austin, TX · Member since 2022 · 30 posts · 24 votes

This was the case in Austin too until recently. For many years my business was exclusively everything but Austin proper. I honed in on the suburbs with tourist markets - think near the lake and Dripping Springs where wedding venues, wineries and breweries are everywhere. The thing is not all suburbs are created equal. And neither are all investors. In the suburbs you may be able to get a great cash on cash return, but the appreciation potential may be lacking. The thing about str investing is there isn't a magic formula, you have to look at each property super specifically and investigate the market at large surrounding it in order to find the investment that makes sense for YOU.

Staton Jobe

Member since 2021 · 18 posts · 2 votes

Hey Blake, this is great info. I just moved back to Austin about two years ago and have been looking to break into the STR market. I currently just have one other property in Virginia Beach that we self manage and has done well.

Would be curious if you're willing to share what suburb this property is in? Most of my searching has been out around Wimberly but that's also more of a "vacation" market, so I'm very surprised how well yours does in a suburb

Blake Anthony CarterBusiness Member
OP
Real Estate Agent · Austin, TX · Member since 2020 · 101 posts · 47 votes
1y
Quote from @Staton Jobe:

Hey Blake, this is great info. I just moved back to Austin about two years ago and have been looking to break into the STR market. I currently just have one other property in Virginia Beach that we self manage and has done well.
Would be curious if you're willing to share what suburb this property is in? Most of my searching has been out around Wimberly but that's also more of a "vacation" market, so I'm very surprised how well yours does in a suburb

Definitely! Shoot me a message and let's connect offline
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Ryan MoyerBusiness Member

Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes

Just make sure there is language built into the regulations that protects you against future regulation.

I strongly believe that 50 years from now STRs in residential zoned neighborhoods won't exist. The reality is we're operating commercial businesses in residentially zoned areas that objectively don't make any more sense there than a Hilton or a steel mill, neither of which would be permitted to operate there. It's a loophole, currently, and one that will continue to be closed more and more. These cookie cutter suburban neighborhoods lined with houses 15 feet away from each other will be some of the first to go.

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