STR Analysis (includes COC analysis of OBX, Smokies, St. Aug)
Currently, I am shooting to get an STR in OBX, Smokies, or St. Augustine for a self-managed. The goal is to get the highest COC return on a 450-575k budget that I am able to self-manage. I have found myself in analysis paralysis and know I need to jump on something soon. It has been challenging as my data conflicts with the suggestions given (i realize analysis is just an educated guess).
(OBX) On paper, OBX outperforms all areas I am looking into and it is an area I am most interested in. However, I will be self-managing remotely and I hear getting good cleaners and handymen are quite difficult in the area. Additionally, I assume upkeep on a house on the coast is going to be more than in the mountains. There is not much info on this area so would love to connect with someone
(Smokies) I have been told the smokies would outperform this area however my data says otherwise. With the prices inflated I am finding it hard to find a house that would produce the same COC returns but I also know my data may be lacking as I do not have experience in the area. I have found that 4 rooms are the sweet spot and at that point, it is the best performer however those are going for 800k+ (Possible for me but would have to borrow a good bit from friends and family and would have limited funds left remaining) Hoping at some point the market cools off as this would be the clear winner at that point.
(St. Aug) is going to be the closest location to me in distance and it seems lower risk as it is able to turn into an LTR and it is also a "driving destination". But the changes of the regulation up there are worrisome and its COC return is not as high. Logistically this is my prefered location however it does not seem too popular
With any property, I get I plan on working hard on making the listing stick out as much as possible which I know is a critical factor.
Question: Can anyone give me any input on my COC analysis or what location they would rank as the best (best meaning highest COC within my budget that can be remotely self-managed)
COC Returns By Area Below (SELF MANAGED)
1. Smokies (2br 2bath 575k purchase)
- -Average COC = 22.13%
- -Top Performer COC = 39.28%
2. OBX (3br 3bath 575k purchase)
- -Average COC = 24.12%
- -Top Performer COC = 43.54%
3. St. Aug (2br 2bath 540k purchase)
- -Average COC = 22.10%
- -Top Performer COC = 35.00%