STR proximity - How far is too far?

Question

While looking into options to minimize a down payment and generate funds for future investments I began looking into STR opportunities in my area that could be bought as a vacation property.  Killington mtn. VT and cape cod are both in my back yard.

While the cape is flooded in the warmer months it is quite desolate in the off season.  Killington should draw rentals year round despite peaking during ski season.

Does anyone have experience with STR that are based around ski towns?  How close to the resort should I be looking?  Has anyone had success or failures in similar markets?  I’d have the same questions for cape cod.

Duncan Banks · Answer

@Mark Miles

I don’t disagree.  Trying to make all that money in a fraction of the year poses some challenges.  Most folks that are successful with season rentals in this area rely heavily on the ridiculous rates they can justify as a per/night fee over the 15 week peak season and then settle for a less glamorous month to month rate during the off season.  I’ve actually stayed in the off season rentals because you can get a lot of bang for your buck and still have unbelievable weather on either end of your stay.  With this being said there are thousands of tourists spots in new England alone that do just that.    The associated traffic alone is enough to deter many locals but people come from all over despite South Africa  sending us all their sharks.

Are all of these success stories from before the modern housing market?  Possibly

Daniel Bradley · Answer

That's one of the reasons I'm zeroing in on your market, even from afar. Checks a lot of boxes.

Russell Cazeault · Answer

@Duncan Banks

I wouldn’t do the Cape - it’s too short of a season.

Most of the demand is July and first half of August.

Barnstable now has a 14.5 % short term rental tax and I believe some other towns are following suit.

Seen a lot of people try it for a year and throw in the towel.

Mark Miles · Answer

Yes, I think the people making money in the northern seasonal markets are people who’ve had the house in their family for generations. I don’t think it’s likely to pay current purchase prices for a Cape Cod house for example & earn big cashflow.

The big cashflow happens in the southern half of the US which gets year-round rentals & much more affordable purchase prices. Win win!

Mark Miles · Answer

****#1 most important thing: make sure you invest somewhere that can earn revenue year-round!!!! You’re simply not gonna make any money if your place sits vacant for many months of the year. Cape Cod, good god - it’s like a 10-week per year STR season.That’s why most people on here invest in the southern half of the US:https://www.biggerpockets.com/...

Duncan Banks · Answer

@Michael Baum

Thanks for the heads up.  I’ll be sure to read up on what’s on the horizon

Michael Baum · Answer

Hey @Duncan Banks, there is a lot of chatter about limiting STR's in Killington.

https://www.mountaintimes.info...

https://www.rutlandherald.com/...

Looks like they are moving towards registration. That is not a terrible thing IMHO. Of course we would like not to have to pay fees, but it is better than a ban altogether.

Paul Sandhu · Answer

Depends how far your competition is from the destination funplace.  If a hotel is 25 minutes away, you'd have no problem being 25 minutes away.  If you are 45 minutes away, that's a problem.

My 23 STRs are within 7 minutes of a refinery.  Refinery contractors are my tenants.  If I was 15 miles away in the next town, my little STR venture would not work.

Luke Carl · Answer

100% market specific. In my market anything within 15-20 minutes from the “parkway” is able to stay 85% occupied year round