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Short-Term & Vacation Rental Discussions

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Chris Seveney
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#2 All Forums Contributor
  • Investor
  • Virginia
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Vacation area STR market

Chris Seveney
Pro Member
#2 All Forums Contributor
  • Investor
  • Virginia
Posted Apr 4 2020, 13:24

So I have been looking at properties in the outer banks and USVI to acquire for a 2nd home / short term vacation rental.

Had a realtor I have been talking with for several months about properties in the area text me today asking what my “pulse” was as his opinion was “People tend to buy more real estate for investments when the stock market is volatile” therefore he believes pricing on homes will surge.

I kindly told him we are sitting on the sidelines to see how this plays out but my sense is with 2nd home / STR investment properties we are going to see many get crushed and not recover and see prices drop in these areas which are literally 70%+ vacation rentals

Curious as to the opinion of others on their thoughts of what will happen in these communities which are heavy on STR and the properties do not provide huge cash flow (most just cover expenses and some of mortgage but most cash flow negative)

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