Vacation/short term rentals

Short-Term & Vacation Rental Discussions

Vacation/short term rentals

Rental Property Investor · Florham Park, NJ · Member since 2019 · 16 posts · 2 votes

Hey BP fam!

Where do you own vacation rentals? Where are you seeing growth/popularity/profits/success with Air BnB or VRBO?

Interested to know where people are purchasing where they feel they're receiving great ROI! I own 2. The Jersey Shore (1 block from the beach) and Stratton Mountain (about 3 streets off the base of the mountain).

Share your story!

1 Reply

138 views

Most Popular Reply

Eric P.

New York City, NY · Member since 2016 · 470 posts · 348 votes

From https://www.airdna.co/blog/best-places-to-buy-a-vacation-rental-home-2018:

The y-axis is profits & the x-axis is property cost. You want to maximize profits & minimize cost so the sweet spot is the upper left of the graph. If you hover over the bubbles in the upper left you’ll see that they’re almost all in Tennessee & Florida.

Which makes sense bc, no matter how great other parts of the US may seem, your ROI drops sharply if there's even a small sliver of the year that's off-season. TN & FL are the sweet spot where weather is nice year-round & properties aren't too expensive (as they are in California & Hawaii). If you don't like TN & FL, your next best options are the neighboring states.

If you wanna invest elsewhere bc you want to use your vacation home personally, that’s one thing. But for pure ROI, you can’t refute the data.

There really is no magical formula here: inexpensive properties + year-round bookings = highest profits

6 Reply

See this reply in the discussion

35 Replies

Jump to latestLatest

Sort by

John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
SC Lake Hartwell close to Clemson University.
0 Reply
Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Tommy Kerwick Jr. we share our stories on here every day you share yours :)
I’m on the TN side of the Smokys. Very decent.
Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
0 Reply
Eric P.
New York City, NY · Member since 2016 · 470 posts · 348 votes
7y

From https://www.airdna.co/blog/best-places-to-buy-a-vacation-rental-home-2018:

The y-axis is profits & the x-axis is property cost. You want to maximize profits & minimize cost so the sweet spot is the upper left of the graph. If you hover over the bubbles in the upper left you’ll see that they’re almost all in Tennessee & Florida.

Which makes sense bc, no matter how great other parts of the US may seem, your ROI drops sharply if there's even a small sliver of the year that's off-season. TN & FL are the sweet spot where weather is nice year-round & properties aren't too expensive (as they are in California & Hawaii). If you don't like TN & FL, your next best options are the neighboring states.

If you wanna invest elsewhere bc you want to use your vacation home personally, that’s one thing. But for pure ROI, you can’t refute the data.

There really is no magical formula here: inexpensive properties + year-round bookings = highest profits

6 Reply
Paul Sandhu
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
I'm in the worst town to live in Kansas, 2017 and 2108, according to Google. 3rd worse town this year. There is a refinery in this town. I rent to traveling refinery contractors. Big burly guys with neck tats, chew tobacco in their sleep, drive jacked up 4x4s, smell like diesel fuel, and are loose with their money around loose women. If you saw one of my tenants in an aisle of WalMart, you'd skip that aisle until they were gone. I'd go up to him, punch him in the arm, and say What's up mofo. If he saw me at a bar, he'd send me some beers delivered by the waitress with the biggest hooters. No lie.
3 Reply
Nancy Bachety
Rental Property Investor · North Fork, NY · Member since 2016 · 1k+ posts · 631 votes
7y
Sevierville, St Augustine and Long Island.
0 Reply
Account Closed
Investor · United States · Member since 2018 · 565 posts · 356 votes
7y
Originally posted by @Tommy Kerwick Jr.:
Hey BP fam!
Where do you own vacation rentals? Where are you seeing growth/popularity/profits/success with Air BnB or VRBO?
Interested to know where people are purchasing where they feel they're receiving great ROI! I own 2. The Jersey Shore (1 block from the beach) and Stratton Mountain (about 3 streets off the base of the mountain).
Share your story!

The south east is great, also Scottsdale AZ, Austin and San Diego.

1 Reply
Rhonda Blue
Real Estate Broker · East TN Loudon/Lenoir City/Tellico Village · Member since 2014 · 363 posts · 222 votes
7y
@Tommy Kerwick Jr.
We have 5 STR in and around Pigeon Forge, Gatlinburg. One of the best decisions I have ever made. We also own LTR in Huntsville, AL. Growing by leaps and bounds.
We did own 2 in St George UT and LOVED it over there with Bryce Canyon vacationers from CA and snow birds from Salt Lake.
We have friends and family who own in Big Bear, CA and also Palm Springs, and even in Pheonix, AZ.
Currently still exploring FL.
0 Reply
John D.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
7y
We are very active down valley of Palm Springs, in the greater Coachella Valley area. We've found our niche, and the numbers are unbelievable, but the threat of a change in regulation always looms large.
0 Reply
Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
7y
We are in north Idaho on Lake Coeur d'Alene.
1 Reply
Jeffery Wilen
Rental Property Investor · Vancouver, WA · Member since 2017 · 182 posts · 115 votes
7y
We’re in MD on the Chesapeake.
1 Reply
Tommy Kerwick Jr.
OP
Rental Property Investor · Florham Park, NJ · Member since 2019 · 16 posts · 2 votes
7y
@Luke Carl I shared my “story” yesterday soon before writing this post! I wrote it under the new to BP/new investor section. I like the idea of vacation rentals as long as you’re cash flowing after expenses, naturally. The best part is being able to use the property with family if there was any down time. Im always taking into account exit strategies as well. If I can’t rent it as a “seasonal” rental depending on the location, if a recession happens, can I rent it full time..
I’m interested in other beach/lake areas if anyone has any good suggestions?
0 Reply
Tommy Kerwick Jr.
OP
Rental Property Investor · Florham Park, NJ · Member since 2019 · 16 posts · 2 votes
7y
Thats great @Michael Baum, I like the idea of having a spot on a lake. I’m thinking of doing the same myself to add to my vacation rental portfolio. What are the prices like? Are you right on the lake?
0 Reply
Tommy Kerwick Jr.
OP
Rental Property Investor · Florham Park, NJ · Member since 2019 · 16 posts · 2 votes
7y
Hey @Jeffery Wilen, I’m interested in the idea of affordable housing rentals as well. Read your interests in your profile. Are you looking to do that in MD?
0 Reply
Tommy Kerwick Jr.
OP
Rental Property Investor · Florham Park, NJ · Member since 2019 · 16 posts · 2 votes
7y
Hey @Rhonda Blue, sounds like you’re on a roll! How is the Alabama market as a whole? Are there areas that people frequent/vacation more than others? What kind of area is Pigeon Forge, Gatlinburg?
0 Reply
Jeffery Wilen
Rental Property Investor · Vancouver, WA · Member since 2017 · 182 posts · 115 votes
7y
@Tommy Kerwick Jr.
Yes, we currently have both STR and affordable LTR rentals in MD. Close to I95 between Philadelphia and Baltimore. Send me a message if you want to know more.
0 Reply
Tommy Kerwick Jr.
OP
Rental Property Investor · Florham Park, NJ · Member since 2019 · 16 posts · 2 votes
7y
I’ll definitely check out Scottsdale as I’ve heard it can be a great rental area. How are prices? What have you been seeing for your rentals there and who do you mainly cater to? @Account Closed
1 Reply
Avery CarlBusiness Member
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
7y
I've got 15 doors total. 5 of which are STR's in the Gatlinburg area. The income from the STR's funded the down payments for the long term rentals. STR's are a great way to scale quickly.
Podcast Guest on Show How to Get More Airbnb Bookings This Spring and Summer Break
3 Reply
Michael BaumPro Member
Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
7y
Hey @Tommy Kerwick Jr.. We are sort of on the lake. There is a residential road in front of our house, a small slope down to the bike trail then our beach. So technically we are not exactly waterfront, but we have littoral rights to the beach and water and can manage it as we see fit up to a point. I can't remove any large plants like a cottonwood without letting the state know.
As of now, there is nothing blocking anything on the beach. There is a small stand of cottonwood suckers that I keep trimmed that split the beach. The stand is only about 4 feet wide out of a 50 foot beach.
As for Lake Coeur d'Alene waterfront places, it can run the gamut from mid 600's up to well over 5 million depending of course.
One of the biggest issues you need to watch for is where you get your water as well as if it is in Idaho Dept of Lands management or the Coeur d'Alene Indian Tribal control.
Many older places still draw water from the lake for it's primary source. Those systems are no long allowed and are always at risk of being phased out forcing a well drill.
If you have a well, there is a good chance that the water is hard as the rock it came through so it is not easily drinkable. There are plenty of places on the lake that have to bring in drinking water due to the high level of minerals. Our house is on the city of Harrison water system.
Septic is also an issue if you want to buy a parcel and build there are hoops.
Overall the area is great with lots to do. We are well out of town about 35 miles down lake from the city. Harrison is small at 295 people. It has a nice little store, a couple of places to eat and the marina, but not a lot more. The closest town of significant size is St. Maries about 18 miles to the south and about 2200 people. It has 2 grocery stores and more restaurants. It is a logging town. I get my chainsaw chains sharpened at the shop there.
The city of Coeur D'Alene is quite big at over 50k people and some place in town would be great. The Ironman race there is on the circuit and one of the largest attended in the world. We had people staying at our place for the Ironman this year. Some folks move out and rent their house in town for the week and they can bring in 5k in that time.
Lots of options for STR's here.

0 Reply
Account Closed
Investor · United States · Member since 2018 · 565 posts · 356 votes
7y
Originally posted by @Tommy Kerwick Jr.:
I’ll definitely check out Scottsdale as I’ve heard it can be a great rental area. How are prices? What have you been seeing for your rentals there and who do you mainly cater to? @Account Closed

Rent is a little higher there than the surrounding areas and so are property prices. Scottsdale is the destination area for travelers coming to Phoenix. But you can charge a lot per month like $180+ per day so the cashflow is great. A lot of people from CA and the other western states come there. Plus there's also a lot of business travel as Scottsdale is the business district of Phoenix.
0 Reply
Ryan Swan
Real Estate Agent · Phoenix, AZ · Member since 2012 · 640 posts · 457 votes
7y
@Tommy Kerwick Jr. I've helped quite a few BP clients purchase STRs in Scottsdale, and all are doing very well. Estimated gross annual revenue for a 4/2 house + pool in South Scottsdale is upwards of $100k. You can bank on the yearly events here that draw hundreds of thousands of visitors (WM Phoenix Open golf tournament, multiple MLB teams for Spring Training, Barrett Jackson auto show, Arabian horse shows, etc). These are just the events that are held year after year, and there are many more that Phoenix hosts often as well (Super Bowl, NCAA tournaments, Bowl Games, All Star games, etc). I've seen many of the best houses renting for above $1000/NIGHT for the Phoenix Open week alone.
Bookings do drop off during the summer months (roughly June through September), but I was just talking to my STR rental manager and he pointed out that most of my clients' properties are still booked every weekend + some odd days throughout the summer. Or come enjoy your own house during the summer - it's really not bad here with a good air conditioner and a diving pool!
0 Reply
Bob Smith
Real Estate Investor · Des Moines, IA · Member since 2017 · 41 posts · 14 votes
7y
Originally posted by @Ryan Swan:
@Tommy Kerwick Jr. I've helped quite a few BP clients purchase STRs in Scottsdale, and all are doing very well. Estimated gross annual revenue for a 4/2 house + pool in South Scottsdale is upwards of $100k. You can bank on the yearly events here that draw hundreds of thousands of visitors (WM Phoenix Open golf tournament, multiple MLB teams for Spring Training, Barrett Jackson auto show, Arabian horse shows, etc). These are just the events that are held year after year, and there are many more that Phoenix hosts often as well (Super Bowl, NCAA tournaments, Bowl Games, All Star games, etc). I've seen many of the best houses renting for above $1000/NIGHT for the Phoenix Open week alone.
Bookings do drop off during the summer months (roughly June through September), but I was just talking to my STR rental manager and he pointed out that most of my clients' properties are still booked every weekend + some odd days throughout the summer. Or come enjoy your own house during the summer - it's really not bad here with a good air conditioner and a diving pool!

To gross $100k a year what type of value of house is that? Luxury home I assume? Maybe $750k?
0 Reply
Kevin Moules
Rental Property Investor · Turlock, CA · Member since 2018 · 226 posts · 147 votes
7y
Funny I came across this today. Just spent time talking to a local investor here in CA that has several STR in Scottsdale as @Ryan Swan alluded to. He showed me what he is renting them out for and I just could not believe it! He even has bookings a year out for the busy season. They have been a great investments for him and they all cash flow well. However properties were purchased 3-4 years ago and market is a little hotter down there now even for SFH.
0 Reply
Ryan Swan
Real Estate Agent · Phoenix, AZ · Member since 2012 · 640 posts · 457 votes
7y
@Bob Smith high 500's to mid 600's
Other features like a third bathroom or a heated pool allow slightly higher rates and/or contribute to higher occupancy as well.
0 Reply
Account Closed
Rental Property Investor · Member since 2018 · 66 posts · 71 votes
7y
@Tommy Kerwick Jr. We own a duplex in Panama City Beach that’s walking distance to the beach. We love the area and do well with the units through AirBnb/VRBO. We're currently under contract for another duplex in PCB and will do the same with those two units.
0 Reply
Bob Smith
Real Estate Investor · Des Moines, IA · Member since 2017 · 41 posts · 14 votes
7y
Originally posted by @Ryan Swan:
@Bob Smith high 500's to mid 600's
Other features like a third bathroom or a heated pool allow slightly higher rates and/or contribute to higher occupancy as well.

That's interesting Ryan. So let's say I spend $650k on a house in Scottsdale and gross $100k. Not holding you to this but roughly what's my net after Airbnb fees, utilities, taxes, etc.... About half!? I am putting cost of mortgage out of the equation for simple math purposes. I am just trying to compare, in my head, to buying 6 houses in Cleveland/KC/Memphis that would be gross rents of $75k a year +/-. You make a compelling case for a Scottsdale STR and that's way more fun than 6 homes in KC. What about management fees for managing the Airbnb since I am remote and not looking to give myself a job!?
0 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.