Maryland Real Estate Q&A Discussion Forum

User Stats

30
Posts
19
Votes
Stephen Ray
  • Bel Air, MD
19
Votes |
30
Posts

Any Ocean City investors doing STRs?

Stephen Ray
  • Bel Air, MD
Posted Aug 8 2019, 03:50

Hi BP! Anyone out there own any investment properties in Ocean City MD? Specifically that you are using as a STR? Would also like to hear from Realtors in the area that may manage STR's. Looked at a few places about a year ago but the #'s didn't seem awesome. Recently searching for a place to stay for the weekend and the prices seem very high. Just curious if anyone has a vacation property down there that they rent especially if you are self-managing. Thanks in advance!

User Stats

359
Posts
216
Votes
Ray Slack
  • Investor
  • White Haven PA
216
Votes |
359
Posts
Ray Slack
  • Investor
  • White Haven PA
Replied Aug 8 2019, 04:53

I've analyzed the Ocean City short term rental numbers over the past five years and they've never really made sense. I own a few short-term rentals in Miami Beach and those do makes sense. But since Ocean City only has a good rental market during the summer it just doesn't work out even with the high weekly rental prices. Most of the people buy a vacation home in Ocean City and rent it out just to bring in some additional income. And a lot of people rent it out during the summer and then stayed there during the early spring and late fall

User Stats

3
Posts
6
Votes
Replied Aug 30 2019, 21:06

Hi, Ray. I’m new here, and I’m not challenging your analysis. Rather, I’m attempting to glean some knowledge on why the numbers don’t work. Is there a standard formula for monthly mortgage costs/maintenance/cleaning/etc vs weekly rent that would suggest a profit over the long term? Many properties I’ve found are almost entirely booked for the 2020 Summer season, with additional rentals booked well into October, and some beyond. 

I see it as “12 weeks of prime summer rentals, and 12 months of mortgage payments”. I know literally nothing about how this works. Then again, that’s why I’m here. Thanks! 😁

User Stats

16
Posts
1
Votes
Replied Feb 25 2021, 00:37

I’d love to get more information on the original poster’s question. I have the same outlook, in terms of if I can rent it 12 weeks Then I’ve paid the mortgage and put the rest in my pocket. Anything over 12 weeks would be icing on the cake.