Anyone have a STR in Hurricane, UT?

Question

I’m very interested in Hurricane, UT. They aren’t the friendliest STR community but not the worst either. They limit the number of permits, which can also be a plus in creating less competition. There also seems to be a lot of growth in the area. Does anyone own and operate a STR in Hurricane? I would appreciate any feedback, positive or negative.

Zach Edelman · Answer

What's the ideal renter here? Seasonal skier?

Shruti Dendage · Answer

Thank you so much @Ryan Moyer

Ryan Moyer · Answer

Yes we still have our place in Kanab.  It definitely has slowed down as I predicted above as the post-covid travel boom has worn off in the area (Zion was a big drive-to destination when flying was difficult).  We still cash flow nicely every month but our mortgage is 500k at 2.75% and the same home right now would probably cost 800k at 7% so the numbers would likely be much more difficult at current prices/rates.

Shruti Dendage · Answer

Is Hurricane, UT still good investment for STR? I may be potentially looking at buying a property where the permit is already in place. Do we have to renew the permit every year?

@Michelle Glacken Did you end up purchasing in Hurricane?

@Ryan Moyer Do you still have your Kanab property/ STR? If yes, how is it doing?

Thank you!!!

Michelle Glacken · Answer

That’s great! Congratulations. The market isn’t saturated so I would assume your success will continue. It’s a beautiful area.

Ryan Moyer · Answer

Our place in Kanab is doing amazing.  The only real problem in Kanab is it's a small town where the vacation rental market is doing really well so things like cleaners, handymen, etc are overworked and in short supply.  Also not having a walmart or lowes in town is kind of a pain when setting it up or needing things quickly, but guests really seem to love the more remote setting so it's a give and take.

Similar to Hurricane I'm not sure how sustainable the current occupancy rates are once the post-covid boom settles down, but we went live in March and have been booked pretty much solid ever since.

Michelle Glacken · Answer

@Ryan Moyer we looked in Kanab as well. How is your property doing?

Ryan Moyer · Answer

We looked there somewhat recently.  The waiting list for a permit is around 10 years unless you can find one for sale that already has a permit, in which case expect to pay at least 2x fair market value.

Other than that they seem like a lot of places right now.  They were relatively poor investments pre-Covid unless you were looking for a place to use yourself and cover some of the mortgage cost with rentals, but they are blowing up big right now and making lots of money.  Which one of those the future holds is still to be determined.

We ended up buying in Kanab instead.