Where to look for STR/ Airbnb?

Question

My group has 2 four-plex long term rentals in Tucson AZ and wanting to diversify. We are all California natives looking for good returns. Where out of state should we be looking/ consider? Any advice or suggestions would be much appreciated!

Avery Carl · Answer

My advice is to stick to mature vacation rental markets where tourists have been renting privately owned properties on an overnight basis for decades. Think beach and mountain markets. I have 24 doors (6 STR's) and that strategy has worked really well for me, as those markets are the most friendly towards STR's regulations-wise. They also have proven and documented tourism numbers so that make analysis much easier.

Pamela Sandberg · Answer

If you're happy in Tucson, you should definitely look up in the Phoenix area, too. Investors here are crushing it with STR (especially in tourism-heavy areas like Scottsdale). We've got some of the fastest rising rents and best appreciation in the country. And as you've probably already discovered, managing OOS properties isn't as bad when you're just a short drive away. OC to Phoenix is only about a six hour drive or so!

Paul Sandhu · Answer

Your STR market doesn't necessarily have to be for people on vacation.  I know a guy that makes a killing with his 23 STRs.  He's from a small town with a big refinery.  He rents his 83 beds out to refinery contractors.  Welders, pipefitters, boilermakers and other such ruffians.  Big burly guys that drive jacked up 4x4s, smell like diesel, chew tobacco in their sleep, and have a scorpion tat on their neck.  You avoid the Walmart aisle if you saw one their.  He'd go up them, punch them in the arm and say What's up mofo.

Mark Miles · Answer

Here’s the top 3 things you need to know about STR:1) Buy in the Southern half of the US - that’s where the big money is made in STR. You need places that will be occupied 10, 11, 12 months a year - that simply doesn’t happen in the northern half of the US. No one wants to vacation to Cape Cod, Alaska or Woodstock in February.Slow season in the south is that 6-week period when occupancy drops to 50%. Slow season in the north is that 7-month period when no one books.2) STR Property managers are simply schedulers.  Don’t let a scheduler take your profits. Either self-manage like many on here do, or hire an inexpensive offshore PM who works US hours & speaks eloquent English (that’s what I do). Mine can set door codes, message (or call) guests, schedule cleaners, adjust the thermostat, monitor my cameras, & call a plumber just as easily as a local PM can, for 1% of the cost3) Hire good cleaners, a solid handyman & befriend some helpful neighbors. Save your money on PMs & pay these people well instead. Call me crazy, but I prefer to spend my money on people who will actually see the inside of my houses, not a scheduler“Wise Northerners invest in the South” -Mark Miles

Alex Olson · Answer

@Austin Nieves always buy an Str that can easily be converted and still cash flows as a long term rental. I suggest near hospitals, universities, and other areas that have high demand for travel but also high demand for long term rentals.

Karen Margrave · Answer

I had planned on putting my house in Sunriver back on the market for sale this spring. Now with the virus, I thought for sure that it would be tough as people would be cancelling reservations. However; the LTR tenant (their lease is up in a few weeks) just texted me that all the homes in the cul de sac are rented and full! People are still going to Sunriver to get away from the cities, with all the open space, etc. Though the amenities of the waterpark, etc. are closed.

Alex Olson · Answer

@Lucas Carl That's awesome!

Luke Carl · Answer

@Alex Olson I’ve got a couple of two bedrooms that gross over 50k per year each and if they were anywhere near the closest university they’d be empty.

Joey Morea · Answer

@Brian Dickerson

The property needs to be zoned for short term rentals and most of those are going to be is Osceola county.

John Underwood · Answer

Honestly not sure, but if this is so then you could probably be successful being right outside of this area and still be close enough to the attractions.

Where to look for STR/ Airbnb?

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