Short Term Rental in Lake Harmony, Poconos

[Ashish Mody]

I am interested in buying a short term rental in Lake Harmony which I can also use few times with my family/friends. My initial analysis is not looking very promising so asking the experts here for help -

1. How is the occupancy rate in this region? I see folks say 35% which would mean 120+ nights. Is that realistic?

2. Will 4 bedroom be better or smaller home will have more rental potential? What should I expect as a daily rental rate?

3. While counting expenses I am considering - Mortgage, Property Tax, HOA, Insurance and maintenance (100 per month). Am I missing anything and how much should I allocate (mainly for an STR)?

4. Does Split Rock allow STR? I think Lake Harmony does allow it but not sure if the resort has different rules. How much would it cost to use lake and other amenities at the Split Rock Resort?

Thanks in advance.

[Mark Miles]

Occupancy rate is very low, like 20-25%. Property tax is VERY high. You are also missing electricity which is VERY expensive. You’re also missing a bunch of other expenses such as buying supplies, fixing damage, etc.

Things are really tough in the Poconos right now. SUPER tough to turn a large profit (exhorbitant expenses such as high property taxes & exhorbitant electricity costs combined with low annual occupancy rates).

Another big problem you’ll have in the Poconos is that contractors & service professionals & cleaners & handymen have a habit of being SOOOO unreliable that there’s actually a term for it: the Pocono Promise. It means when someone tells you they’ll be there at a certain time to clean your house or fix something & you never hear from them again! Seriously, that’s what this area is known for! 😝 Causes major stress & headaches for peopl who own homes in the Poconos

Here’s a good thread on the challenges you’ll face in the Poconos:

https://www.biggerpockets.com/...

Also beware that the Poconos tends to have a problem with meth & opioids & other drugs. Here’s a funny post from a BP member that basically summarizes the Poconos in his first paragraph:

https://www.biggerpockets.com/...

Even though I live nearby to the Poconos, I prefer investing in the Southern US (way higher year-round occupancy rates & way more money to be made) but if you’re really intent on buying a property in the northeast, remember that the 30 million people in the nyc area tend to vacation more in the catskills, hudson valley, berkshires, adirondacks & green mtns (vermont) more than the poconos. Those areas have far better skiing (WAY taller mtns), far better hiking (WAY taller mtns, better views) & WAY better fall foliage (better in New England than PA).

Here's a great summary, courtesy of Avery Carl, of the kind of numbers you can expect down south (including complete pro formas). Sadly, you simply won't get annual revenue, annual occupancy rates, annual net income, & annual ROI like this in the north:

https://theshorttermshop.com/c...