Rental Property Investor · Member since 2019 · 5 posts · 0 votes
So I just recently started looking on AirDNA to see what average was in my area for STRs. It looks like occupancy average is 35%-52%. Is that good? I’m just outside of the Flint Area in Michigan. I’ve searched about 30 miles out and that’s the average. I’m just wondering if I’m in the wrong area to be attempting this. (I’m still very new and gathering info before I jump.)
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
6y
I'm not sure why you are concerned about occupancy. How much rent are you going to bring in, as compared to expenses? We have properties at 40% occupancy that CRUSH, and I know of properties at 80-90% that barely break even.
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
6y
50% occupancy is not great. AirDNA data is not perfect but it's pretty decent. My STR's hit just under the numbers that they show for the 75th percentile in my area.
That being said, I don't know much about Flint, is there much tourism there? STR's will be much more profitable in an area that sees heavy tourism. But, if your purchase price is cheap enough that 50% occupancy is cash-flowing, then it might be a decent idea. I would just need some more information on the rest of the deal to make a better recommendation.
So I just recently started looking on AirDNA to see what average was in my area for STRs. It looks like occupancy average is 35%-52%. Is that good? I’m just outside of the Flint Area in Michigan. I’ve searched about 30 miles out and that’s the average. I’m just wondering if I’m in the wrong area to be attempting this. (I’m still very new and gathering info before I jump.)
The Upper Midwest, as with much of the nation, is tough for high ROI STR - the data reflects this.
The highest revenue tends to come from the Southeast US, Colorado, Utah, Arizona, California & Hawaii.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
6y
Isn't there a lot of manufacturing industry in Flint? You can market your STRs to traveling workers. I do that with my 23 STRs. Refinery contractors. Big burly guys that drive jacked up 4x4s, have neck tats, smell like diesel fuel and have chewing tobacco for breakfast.
Rental Property Investor · Member since 2019 · 5 posts · 0 votes
6y
@Avery Carl
There isn’t much tourism in the direct area which is why I thought I would go out a bit. I entered data for 30 miles out and it was the same if not worse. I didn’t think it was all that good but just wanted to check.
There IS manufacturing in Flint. At first thought I didn’t think that was an area to target, but with what you mentioned, I may look a little deeper.
Thanks!
In my town a cheap motel room with 2 beds is $400/week. No pool, no breakfast, no peace & quiet. I charge $600/week for a 3 bedroom house. They can cook everything from a pop tart to a thanksgiving dinner. They can do their laundry. There is cable and a Smart HDTV, so they can log in with their own Netflix account. Outside there is a gas and charcoal grill, horseshoes. Bedrooms are decorated as if Hugh Hefner did it Himself.
Paul Sandhu - The Hugh Hefner of the Working Mans STR
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Valarie Sines@Paul Sandhu is the MASTER of blue-collar contractor rentals - from what I've seen, it's not for the faint of heart, but there is definitely plenty of money to be made there in the right market!
Im at 55% occupancy in my basement at the house I live in with my family and it more than covers my mortgage. We hire cleaners about half the time and my wife does it the other half which helps. It all depends on what you are shooting for. I believe if there are hotels in the specific area you are in there is likely a market for your STR... best of luck to you!
@Paul Sandhu where are some good locations you recommend for the type of STR's you do in the USA? I remember you mentioned a few in previous posts. I was thinking of checking out Midland/Odessa.. thoughts?
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
6y
@Jonathan Balos A person could do this anywhere there is a large industry (refinery, factory, military base, university, etc) in a relatively small community. Small would be 25,000 people or less. My town in 9,500. The refinery here employs about 800 locals, and 50-500 short term temporary workers that come from more than 3 hours away. You'd be marketing towards those short term temporary workers.
It helps if you have some inside edge to get your foot in the door. I give the pre-employment drug screens to the short term workers before they can get through the refinery gate.
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
6y
I'm not sure why you are concerned about occupancy. How much rent are you going to bring in, as compared to expenses? We have properties at 40% occupancy that CRUSH, and I know of properties at 80-90% that barely break even.