Rental Property Investor · Columbia, SC · Member since 2020 · 302 posts · 186 votes
Now that we have almost a year of data of Covid, how has that made you feel about STR as a strategy for you as an investor? In my experience STR just have the best returns, nothing else comes close (maybe this is a misunderstanding on my part). And if you want to create cashflow and gain financial freedom it just is the best method to follow. What are your experiences and thoughts on this investment strategy as we move forward?
Investor · Greenville, SC · Member since 2015 · 1k+ posts · 1k+ votes
5y
Covid has completely changed the way people think about taking vacations. If your STR is in a drivable destination location area then it will rock for a long time. People have changed how they take vacations. They are not staying in hotels as much and are looking for other options. A lot of first time STR users this year that will continue to be STR users because they learned they generally have more to offer than a hotel.
Real Estate Agent · USA · Member since 2016 · 909 posts · 1k+ votes
5y
Exactly what @john Underwood said. Vacation rentals are booming. I’ve got 2 more under contract for my portfolio (as well as 14 long term doors) currently. I personally stay away from short term rentals in markets that aren’t tourism dependent. Those took a significant hit from covid where vacation rentals have not.
Financial Advisor · Winston Salem, NC · Member since 2016 · 195 posts · 161 votes
5y
@Cole Simpson overall, I’m in agreement with most of the others here, however, my STRs in non-vacation rental markets still performed well last year(in comparison to a long term rental). We were able to pivot and put traveling nurses, people who wanted more flexible accommodations to get out of the mega cities. I’m still bullish on urban STRs, and get a little concerned about the saturation of the market in traditional vacation markets.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
5y
What is going on in the White House effects me more than the pandemic. I've been renting to refinery contractors for 8 years. This is the first time in 8 years that I have more non-refinery tenants than refinery tenants. Have 3 groups that are non-refinery. Wind farm, Fiber optic network, soil remediation. All those things are govt work.
Pelzer, SC · Member since 2017 · 26 posts · 10 votes
5y
Ditto what John and Ken said. It was the best real estate decision I ever made buying a vacation rental.
I owned a house in Savannah that was left to me as an inheritance and considered making it into an STR, but ended up selling it and paying off a real estate loan.
I had no idea at the time I was going to get into the vacation rental market, but by chance a friend got into it and was doing well. I listened, worked the numbers and took a chance.
Ultimately you have to take that chance. I know several people who had the same information and means as me but just couldn’t pull the trigger. Do your research, find a mentor or professional to give you good advice, listen and then pull the trigger.
Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
5y
Although I agree that STR in vacation destinations are overall better performing, I would argue STR in most locations did far better since COVID. I have a STR by a hospital and every slot gets filled. AirBNB provides statistics about year over year bookings in my market and it has been up 30%. My guests are coming for many reasons beyond the nearby hospital. One of the reasons STR have benefitted is people don't want to stay at hotels to stay away from people. We usually stay at hotels, but when we go on vacation next month we are getting a pool house in Florida. If it wasn't for COVID I would have booked a hotel on the beach and not even in Florida.
After COVID, hotels will gain popularity and it will cut into STR in some markets. Of course there are locations like the mountains, where hotels were not competition prior to COVID, so they won't be after COVID. Vacation rentals existed long before AirBNB and VRBO.
Here is the bottom line, know your market. Making a blanket statement that STR are good or bad nationally is grossly oversimplifying. Post-COVID travel and vacation will be different. Don't assume the last year will be the same as the next year.
Specialist · Midland, TX · Member since 2018 · 198 posts · 148 votes
5y
I agree with others, our STR had a record year even in a non-tourist college town in a year football was basically cancelled. We did have lots of travelling medical professionals as well (this area is a regional medical center).