STR - How much return can I reasonably expect?
Hey all
Of course, all I'm hearing about is STR these days. I know the 1% rule isn't everything, but it is an easily comparable metric. Currently, I'm not finding it easy to find the 1% rule in markets I'm investing in as the properties sit, but I am finding it possible to find properties that I can reasonably expect to get to the 1% rule within a year or so by raising nearly market rents to market.
What's a reasonable return to expect in a good STR? Is it worth it to take on the extra work, existing or potentially new local ordinances, and seemingly new daily competition for a higher return or have I already missed the boat?
For added info, there's no nearby locations that I'd like to have a second home in that I'd use regularly. I already bought a cheap "used" timeshare at a location I like, and I can't even get there often enough. Long story short, this would be a strictly financial decision.
I'd love any thoughts.
Thanks!