First-Time STR Investor in the Lake George / Brant Lake Area – Looking for Adv

[Zachary Malek]

Hi everyone,

I'm looking to purchase my first investment property and would appreciate some advice from investors who have experience with short-term rentals, especially in Upstate New York.

I'm focused on the Lake George, Thurman, and Brant Lake areas. I've been seeing properties in the $300,000 range that need some work, as well as properties in the $420,000+ range that already have Airbnb/VRBO rental history.

A little about my situation:

First-time property buyer

Approximately $45,000 saved

Low debt-to-income ratio

Stable full-time income

Looking specifically at short-term rental opportunities

Long-term goal is to build a portfolio, but I want to make sure I buy the right first property

Some questions I have:

Would you recommend buying a cheaper property that needs renovations, or paying more for a property that already has proven Airbnb/VRBO income?

What metrics should I focus on most when evaluating STRs? (Cash flow, cash-on-cash return, occupancy rate, ADR, cap rate, etc.)

How much cash should I realistically keep in reserves after closing and any initial renovations?

What are some common mistakes first-time STR investors make in vacation markets like Lake George and Brant Lake?

What property characteristics tend to maximize revenue in this market? (Lake access, hot tubs, acreage, mountain views, proximity to town, number of bedrooms, etc.)

With roughly $45,000 available, would you wait and save more, house hack, partner with someone, or move forward if the numbers work?

What percentage of gross revenue should I budget for:

Cleaning

Maintenance

Capital expenditures

Property management

Utilities

Vacancy/slow seasons

My goal is to buy a property that can generate strong cash flow while also benefiting from appreciation over time. I'd love to hear from anyone who owns STRs in the Adirondacks or similar seasonal vacation markets.

Any advice, lessons learned, or things you wish you knew before buying your first STR would be greatly appreciated!

[Dave Stokley]

I'm not familiar with the area but here's some general advice based on my experience buying many STRs myself, coaching many other buyers, and managing 80+ units in Ohio:

1. It seems like you're a little short on cash to get into the types of properties you are talking about. If you're doing a DSCR loan, which is how many STR properties are financed, you need at least 20% down and often 25%. You'll also need to invest a significant amount of money in furnishing the place unless you buy something that's already furnished (which of course you can do with a credit card or other financing). At this point you probably would do well to find a partner.

2. For STR investors who are looking for cash flow (many are not!), most are looking at cash-on-cash return as the primary metric.

3. The worst STR advice I've ever heard is "buy something that will still work as an LTR if the STR doesn't work out." No. Please don't do this. The most successful STRs would NEVER work as LTRs. They are just different types of properties, different use cases.

Good luck!