Still doing Short term rentals during the Pandemic?

Question

Hey BP Fam! Coming up on a year that I made my first multi family purchase. Currently house hacking but was thinking about investing in a short term rental property next in The Poconos or Catskills. I have been reading (and witnessing) that there is a lot more domestic travel during this time and I live in New York so both locations are a close weekend getaway that during more normal times people love to take for hiking, skiing etc...

Are there any folks who currently have short term rental in The Poconos or Catskills? Are you still finding renters?

Also open to any advice more experienced investors may have to lend!

Thanks!

Are there any folks who currently have short term rental in The Poconos or Catskills? Are you still finding renters?

Also open to any advice more experienced investors may have to lend!

Thanks!

Scott Rankin · Answer

Absolutely!  We have two houses in Pocono Lake, and we're currently working on one in Lake Harmony and one near Albrightsville/Jim Thorpe.  We've found a lot of demand in those areas so far, for lakes/hiking in the summer and skiing/hot tubbing/sitting by the fire in the winter.  Camelback and Kalahari have enormous indoor waterparks that are a draw 4 seasons for sure.  Jim Thorpe in particular is a huge draw, although it's kinda on the edge of what's considered the Poconos.  I hope that helps!

Scott Rankin · Answer

This has been discussed a few places on these boards, but opinions seem to run kinda hot on the Poconos for some reason!  I have two STRs there and am currently in progress on purchasing/renovating two more.  I've been busier than ever since Covid hit due to people wanting to escape the nearby cities.  It's been a great investment for me so far, and I know a few other investors have written in to share similar experiences.  Demand is high and nightly rates on Airbnb are comparable to the Catskills with far lower real estate prices/taxes.  I hope that helps!

Scott

Scott Rankin · Answer

I've done analyses of LTR rates in a few areas in the Poconos, primarily when I'm doing the underwriting for a purchase or refi.  I haven't found a ton of reliable info however, due to the lack of inventory at the moment, and the fact that the houses I'm looking to analyze (A-Frames, chalets, etc) are not generally the type of houses that are available for long term rental.  It makes a good LTR analysis really tough!

That said, I do think the shortage of quality LTRs in the Poconos makes it a good market to investigate for that, especially over the next few years as additional resorts come online in the area, and the existing ones rebound post-Covid.  That's just my anecdotal experience, however.  Like I said, I think reliable data is hard to come by in this market for LTR.

Jena Richards · Answer

@Scott Rankin I’m currently eyeing STRs in these areas as well as Hickory Hills / White Haven. I started looking at the prospect of LTRs in these areas as well and found no rental comps. Did you ever analyze for LTRs?

Nikki Senopoulos · Answer

@Scott Rankin thanks for sharing and that's great to hear you're seeing lots of action up there! Maybe the poconos hate is overstated and everyone is experiencing something different. May I ask what towns you are specifically investing in?

Nikki Senopoulos · Answer

Hi @Marielva Esteves, great point - seems like corona prompted an increase in domestic travel and migration out of cities into more rural locations. I also am looking into the Poconos or NY area for a STR. I currently have a rental in NJ but like probably most I'm not finding anything here at a favorable price point these days. Anyway here is an interesting thread on the Poconos...

https://www.biggerpockets.com/...

That kind of scared me away. I used to do a lot of insurance appraisals all around PA and saw a lot of the state. Most areas in the Northeast PA region are fairly depressed with a lacking job market - a maintenance guy who worked for a school out there once told me "around here if you're not working for a school or hospital, you're probably doing meth". That being said, I'm sure there are pockets of wealth and higher class neighborhoods. I think I would consider this area if I got a property right next to Camelback resort, like literally on the mountain maybe, but other than that it seems iffy. Open to opinions on that though!

I have no insight on the Catskills however. I stayed in an AirBnB in Tannersville (maybe 30 min from the catskills) to ski once and that area was quiet, but a cute spot! Interested to see what you find on that!

Orly Howard · Answer

Hi @Marielva Estevez - I've been looking at places in catskills for a while and since covid hit prices have gone up and places are selling fast. There's definitely a market for short term rentals as so many city folk are escaping to the country so I don't think there would be an issue with demand.  What you might find harder is landing a good deal, many places are getting above asking price offers.  It doesn't mean there are no deals to be found but they might be harder to come across .  Good luck in your search!

Marielva Estevez · Answer

Thanks @Luke Rorech! Will do!

Luke Rorech · Answer

@Marielva Estevez I'm not familiar with those area's in particular. Check out the STR forum on here, most of the investors are doing higher volume now than ever. Best of luck!

Still doing Short term rentals during the Pandemic?

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