What are some STR friendly Cities/Counties in the Country. I hear Gatlinburg seems to be one of 'em. Until recently Joshua Tree,CA was friendly but seems the authorities are cramping down. What other locations do you like. I heard Tony Robinson from BP is an investor in Gatlinburg, TN.
Going to be hard to find a friendlier place than Pigeon Forge/Gatlinburg. There are other similar areas in the south, but few will perform as well as PF/Gburg. For other mountain areas check out NC around Asheville/Bryson City, or the Blue Ridge Mountains in GA around Ellijah.
@Teejay Lobos Yucca Valley, Joshua Tree, Landers and 29 Palms are still friendly. Have a lot of friends and clients that have STRs in these locations with no challenges. The county of San Bernardino covers Joshua Tree and nothing from the county has come down really hard on them as of yet. 29 Palms has talked about it due to some areas that the neighbors are getting a little frustrated (Indian Cove, Utah Trail, etc.); however, nothing has come of this yet.
@Peter Mckernan . Everyone be careful. Word on the street is that the county is issuing a temporary moratorium on new STR applications for the high desert. The main issue is that the local residents need rental options, too, and there is practically nothing with so much having turned Airbnb.
Branson MO. Good prices. @William Beck is who helped us there
@Bryant Brislin I've heard the same thing about the temporary moratorium on STR (and understand the need to pump the breaks a sec). Would you mind sharing how to follow the regulations on this over the year, if you know? Thank you!
Places with very few residents and millions of visitors
@Luke Carl : that seems ideal but what location would those be.
@Sara Plaisted since the moratorium hasn't come out yet (again, it's just rumored, but it seems like it's very likely to happen from what I'm hearing) we don't know what it will say and thus I can't address how to follow it, but my general opinion is that like with all real estate investments, cooler heads will prevail, so everyone hang in there and hopefully you are not overleveraged and were totally dependent on the cash-flow of an STR in order to be able to cover the overhead of owning the property. This moratorium will cause many people to have a knee-jerk reaction and now all the hobbyists/amateurs/speculators will move on to other markets, which we kind of needed to happen since it was getting way too frothy and bid up. I would imagine that the temporary moratorium would strictly be for existing homes and not for new construction, but we'll see. There is a HUGE demand for normal rental housing, so if a property underwrites well to the simple 1% rule, then it can work for you in the meantime until you can switch to STR, and you'll still have the "pro" of the depreciation write-off which many of the high income earner W2 and 1099 folks that I've talked to are needing to offset their big, yearly tax obligation. Although, it's California, thus it can be hard to get a tenant out, which you may elect to do once you can do STR. I have found that the more credit-worthy a tenant is, the more they are willing to move out when the lease is up, especially since they care about a good landlord referral. But there are certain tenant types that are a nightmare, especially in that market, who are like hermit crabs...once they are in, they never want to leave. Unfortunately, rents in this area, despite being as housing-constrained as it is, usually are not more than 2k/month for a normal size home, at least from what I have found, and not many homes cost 200k or less (for turn-key, let alone a value-add/fixer play), but there are a few. Happy to talk to anyone who wants to reach out, but I do run two businesses, so just needs to be when I'm driving home from work usually. :)
@Bryant Brislin @Sara Plaisted yes agreed it's rumored to be what the residence have proposed to the county, the county board of supervisors have not made a decision yet on what way they will go on the topic. As of now it's undecided, and Yucca Valley has a city council that have been faced with the same requests over the past year or more. 29 Palms is it's on city and they have had pressure at their council meetings, nothing will change there for some time per talking with the city officials. In Yucca Valley, the city council has not made a decision yet on the topic, and they do have a couple people on the council that are involved with real estate, so believe that it would lean in the way of pro real estate in the town.
Not really a vacation destination, but I have been doing airbnb in Houston, Tx and it has been successful so far and the city seems pretty airbnb friendly.