New short term investor looking for hot short term rental markets

9 Replies

Hi everyone!  I am a newbie investor from the Baltimore/Washington metro area.  I just got my first long term rental up and running a few months ago and am now looking to try short term rentals to increase cash flow more quickly.  I wanted to start with Rehoboth Beach, DE since its been a family destination my whole life and we have a family place there, but after that I was wondering how do I find the hot markets to get into?  I heard on a podcast episode that the Smokey Mountains, Florida Panhandle and Joshua Tree are up and coming but what is the best way to find and rank them?  I was hoping to aim at a mix of hot markets that are also within driving distance so I both have the option of checking in on it easily and can use it as a lifestyle asset as well.

Thoughts?

There are really only a handful of actual "vacation markets" you already named a few of them. I certainly would not use the term "up and coming" for any of them. If you want true vacation you're limited to vacation markets. Where the local population is much lower than the tourist traffic. You can also of course short term rent in Cleveland but that's a whole different thing.

I agree with Luke.  I will also add that, just because you are investing in a "hot" vacation market, it doesn't necessarily mean you are making a good buy:  Three weeks ago, we had a customer call us wanting us to manage a property that they just purchased in the "hot" Smoky Mountains. They were excited, but anxious to get it renting and cash flow coming in.  Our manager went to meet them at the property.

As it turns out, they've bought a mess.  The cabin is in an area surrounded by trailer houses, the road leading to the property is dreadful, and the property itself needs $50-75K in rehab and risk management just be be rent-able. And the realtor that sold them the property estimated the annual rents to be way more than it will actually do.

Know thy market. Know thy property.  

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Originally posted by @Dan Collier :

a) I heard on a podcast episode that the Smokey Mountains, Florida Panhandle and Joshua Tree are up and coming 

b) that are also within driving distance 

a) If you heard about it on a national podcast, then it's probably already over-run by investors (and maybe regulations)

b) Well Joshua Tree is out......

Originally posted by @Bruce Woodruff :
Originally posted by @Dan Collier:

a) I heard on a podcast episode that the Smokey Mountains, Florida Panhandle and Joshua Tree are up and coming 

b) that are also within driving distance 

a) If you heard about it on a national podcast, then it's probably already over-run by investors (and maybe regulations)

b) Well Joshua Tree is out......

I'm still making the numbers work at 30% COC in the Smokies. It's more competitive than it used to be, but you just have to stay the course, and keep making offers.

Do it where there is a multi year construction project going to happen.  Those traveling workers will need a place to stay.  Tyson was going to build a $150 million plant here, but that fell through.  That was a very sad day when I read the news.

Yesterday I read a company was approved to build a $325 million soybean processing plant here starting in 2022.  Yesterday was a very happy day when I read the news.

Originally posted by @Paul Sandhu :

Do it where there is a multi year construction project going to happen.  Those traveling workers will need a place to stay.  Tyson was going to build a $150 million plant here, but that fell through.  That was a very sad day when I read the news.

Yesterday I read a company was approved to build a $325 million soybean processing plant here starting in 2022.  Yesterday was a very happy day when I read the news.

 So, you are extremely knowledgeable and I trust a lot of what you say… but I also know you make a lot of jokes on here so I legitimately have no idea if this is sarcasm. 

But the idea of purchasing near “big projects “ is ridiculously smart. 

Originally posted by @Dominick Galinis :


So, you are extremely knowledgeable and I trust a lot of what you say… but I also know you make a lot of jokes on here so I legitimately have no idea if this is sarcasm. 

But the idea of purchasing near “big projects “ is ridiculously smart. 

I make jokes of a lot of things here.  But I don't make jokes of my potential revenue stream.  I live in this county.



New soybean crushing facility coming to southeast Kansas (farmprogress.com)

Originally posted by @Paul Sandhu :

Do it where there is a multi year construction project going to happen.  Those traveling workers will need a place to stay.  Tyson was going to build a $150 million plant here, but that fell through.  That was a very sad day when I read the news.

Yesterday I read a company was approved to build a $325 million soybean processing plant here starting in 2022.  Yesterday was a very happy day when I read the news.

 With all your testifying future profits in your neck of the woods do you reckon any investors might join you in that geographical location?

Originally posted by @Joe S. :

 With all your testifying future profits in your neck of the woods do you reckon any investors might join you in that geographical location?

Negative. Already have 83 beds and I don't need to get in bed with anyone else. If someone wanted to invest in this market I would suggest they buy property in Cherryvale or Independence Kansas. There is some musclebound pajeet in Coffeyville that will run anyone else out of this town that tries to do an STR. He even did it to a relative of his.