STRs in urban markets

[Nidal Daraiseh]

Just curious, I've been focusing my search on a couple of true vacation markets where STRs are the norm. There are some legislatively friendly cities and states in relation to STRs. I was curious whether anyone on here has had any experience with using a nice large 4-5 bedroom house as a STR. This would seem to make sense for families, large groups as it gives them more space and keeps the costs down, etc. I'm looking at a few lets call them midwest cities (in Indiana, Missouri, Wisconson, Ohio, etc.) and not on the coasts which I know can be challenging and the price points are super expensive. Many thanks.

[Avery Carl]

The point of focusing on vacation rental markets is in most cases, you don't have to worry about anti STR regulation. That's something that will always be on the table in urban markets. A good percentage of my clients are 1031 exchanging their short term rental dollars out of various urban markets and into vacation rental markets because they are being regulated out.

Even the teeny tiny town that I'm from in Mississippi is working to regulate STR's out. Read through some of these forums, there was a guy a week or so ago in Ohio saying he had to go to lots of city council meetings and fight anti STR laws to keep his investments legal. I think you'll find stories like that are more common than not in non-vacation rental markets.