Can I get into the STR market with $50k?

[Rebecca B.]

Hi all,

I'm at a crossroads and thought I'd reach out here to other STR investors. I will be cash-out refinancing my LTR next spring, I can expect about $50k to fund my next investment and I'd like to buy my first STR. My thought is refinance and then use a 10% down vacation home loan to fund the deal. But seeing the cost of STRs, I'm not sure if that's even possible on my $50k budget. The other option would be to just use money to fund another SFH-LTR.

Is it possible to purchase and launch STR with only $50k? Any market suggestions? Any additional thoughts?

[Dave Stokley]

Absolutely you can. I just bought a 3-bedroom house near Cleveland for STR. 25% down, furnished, and minor rehab all-in for about $55k cash. It'll cash-flow $1k/month for me.