Long Term Rental vs. Short Term Rental

[Wendy Williams]

When evaluating a short term rental property, do you consider the long term rental cash flow and CoC as a contingency in case the STR doesn't work out? Should we not buy it with only STR in mind, if the LTR numbers don't work? What metrics should we target to evaluate STR? (About 1/2 way through your book and loving it!) Thank you for your time.

[Marc Rice]

I manage over 100 STR's and thats what I advise everyone I work with, at least in the metro market I'm in. I tell people to underwrite and buy their deals if the long term rental numbers make sense and to use short term rentals to MAXIMIZE their investment. I think the caveat here is in core vacation markets...