What route to take for first time OOS investor
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Kerlous TadresBusiness Member
Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes@Mimi L., if I were starting from scratch today, I'd skip Airbnb and go straight to mid-term rentals in Ohio, cities like Columbus, Dayton, or Cincinnati are packed with traveling nurses, remote workers, and corporate contractors who need 1 to 3 month stays, and that gives you Airbnb-level income without the volatility or the constant licensing headaches. Ohio's landlord-friendly laws, low entry prices, and strong rental demand make it one of the best remote investing markets right now, especially if you're chasing cash flow and tax benefits from day one.
Kerlous Tadres | Reafco Real Estate541 Reviews
11 Replies
- Real Estate Broker · Nashville, TN · Member since 2022 · 163 posts · 87 votes5mo
STRs can absolutely still work, but the margin for error is way thinner than it was in 2021-2022. The investors I see doing well right now are the ones who treat permit eligibility as step one of due diligence, not an afterthought.
The biggest trap for OOS investors is assuming a property can operate as an STR just because similar ones nearby are listed on Airbnb. A lot of cities now have zone-specific rules that determine whether you can even get a permit — and if you are not living in the property, the rules get even more restrictive. I operate in Nashville and the difference between zones here is night and day. One zone allows non-owner-occupied permits, the one next to it does not, and there is no way to tell from a listing alone.
For Abilene, I would check their local STR ordinance before you go deep on any deal. Some smaller Texas markets are still relatively open, but enforcement is tightening across the board.
A few practical things that have helped me going remote on STR investments:
1. Verify the permit pathway before you underwrite anything. Call the city planning office directly and ask what zone the property sits in and whether non-owner-occupied short-term rentals are allowed there.
2. Run your numbers assuming mid-term rental income (30+ day stays), not peak STR revenue. If the deal cash flows at MTR rates, you have a built-in exit strategy if regulations shift or occupancy drops.
3. Build your local team before you buy. Property manager, cleaner, handyman, and someone who knows the local STR regulations cold. That team is your eyes and ears when you are 1,000 miles away.
STRs are not dead by any means, but the days of buying anything in a tourist market and printing money are over. The winners now are the ones doing the regulatory homework upfront.
- 5moArman AhmedPro MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2024 · 2k+ posts · 957 votes
Quote from @Mimi L.:
Is Airbnb still worth investing in right now or is it getting saturated? I live in NYC and want to start building a real estate portfolio ASAP, so I’d have to do it fully remote. I’m focused on maximizing ROI, cash flow, and tax benefits, but trying to pick the smartest strategy from the start. I’ve been looking at Abilene, TX and it actually looks like it’s booming for short-term rentals, which surprised me. For those actively investing: • Is Airbnb still one of the best plays right now? • Or are long-term / mid-term rentals safer? • What markets are actually working in 2025–2026? Would you start with Airbnb today if you were starting from scratch?
STRs can still work, but they’re a lot more market- and regulation-dependent than most people expect, so saturation isn’t the only issue, it’s consistency of demand and rules over time. If you’re starting fully remote from NYC, I’d think less about “best strategy” and more about flexibility, because markets and regulations can shift quickly. That’s why a lot of first-time out-of-state investors are leaning toward Midwest markets, where you can still find solid cash flow on long-term or mid-term rentals, and occasionally layer in STR in select areas if the numbers truly support it. If I were starting from scratch today, I’d prioritize stability and repeatable cash flow first, then add STR exposure once I had systems and a local team in place.@Arman Ahmed Thanks so much for your time and for breaking that down! It's a huge help to get that perspective on prioritizing stability over the STR hype, especially starting out from NYC.
So, do you think I should focus on buying a long-term rental first? I’ve heard so many people say it’s not worth owning property if you aren’t there to manage it yourself. The common fear is that without being "boots on the ground," the overhead and lack of oversight just eat all your margins.
In your experience, is the "passive" remote model actually realistic for a first-timer, or does the math only really work if you're local?
- Real Estate Broker · Kansas City Metro · Member since 2015 · 2k+ posts · 1k+ votes5mo
To answer part of your question, Kansas City is a great market for out of state investors and mid term rentals work really well in all sub markets. Some sub markets have restrictions on STR.
- 5moEvan HoppleBusiness MemberReal Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
@Mimi L.
Long-term rentals give you a more predictable base to build a portfolio on. STR works in the right markets, but it's harder to scale and more dependent on local regulation.
Reafco Real Estate Hey Mimi, most out-of-state buyers I’ve worked with actually start with turnkey long-term rentals. The main reason is stability and simplicity. With long-term rentals, you get more predictable cash flow, fewer operational headaches, and less dependency on things like seasonality, regulations, and day-to-day management. A lot of investors start with long-term rentals to build a solid foundation, then expand into short-term or mid-term rentals once they’re more comfortable and have a solid team in place. I always recommend seeking help for property manager for your out-of-state rentals. Hope this helps and best of luck on your investing journey!
Hey @Mimi L., welcome to BP!
This is a great question—and from a lender’s perspective, you’re approaching it the right way by comparing strategies instead of chasing hype.Here’s how we’re seeing the market in 2025–2026:
1. STR (Airbnb) isn’t dead—but it’s no longer easy to finance or underwrite
Short-term rentals can still perform well, but the risk profile has changed:
- Strong, proven markets still show solid performance
- Oversupplied markets are seeing declining occupancy and rate pressure
- Regulatory uncertainty is a real factor in many areas
From a lending standpoint, STR deals today are much more operator and market dependent, not passive or plug-and-play.
2. Market selection matters more than ever
We’re seeing deals struggle not because the strategy is wrong—but because:
- Projections are too aggressive
- Expenses are underestimated
- Demand assumptions don’t hold
Secondary and tertiary markets can absolutely work—but only when the fundamentals are there. As a lender, we’re focused on sustainable income, not optimistic projections.
3. How we view STR vs LTR vs MTR
From a risk and underwriting standpoint:
- STR: Higher income potential, but higher volatility and scrutiny
- LTR: Most stable, easiest to underwrite and finance
- MTR: Increasingly attractive—more predictable than STR, better upside than LTR
We’re seeing more investors—and lenders—lean toward stability with upside, rather than pure peak returns.
4. If you’re starting out (especially remotely)
From a financing perspective, the strongest borrowers typically:
- Start with a stable, cash-flowing asset (LTR or MTR)
- Build experience managing a property and understanding real numbers
- Then scale into more operationally intensive strategies like STR
The biggest risk we see is investors going straight into STR without systems, and the deal not performing as projected.
5. Final thought
You’re in the right place—platforms like this give you access to real operators who’ve already gone through the learning curve.
The deals that perform—and get financed most smoothly—are the ones built on:
Stable assumptions → proven demand → strong execution
Not just best-case projections.
If you want, I’m happy to walk through a specific deal or market and show you how it would be viewed from an underwriting standpoint so you can see what actually makes sense on paper and in practice. Best of luck!
Quote from @J Castro:
Hey @Mimi L., welcome to BP!
This is a great question—and from a lender’s perspective, you’re approaching it the right way by comparing strategies instead of chasing hype.Here’s how we’re seeing the market in 2025–2026:
1. STR (Airbnb) isn’t dead—but it’s no longer easy to finance or underwrite
Short-term rentals can still perform well, but the risk profile has changed:
- Strong, proven markets still show solid performance
- Oversupplied markets are seeing declining occupancy and rate pressure
- Regulatory uncertainty is a real factor in many areas
From a lending standpoint, STR deals today are much more operator and market dependent, not passive or plug-and-play.
2. Market selection matters more than ever
We’re seeing deals struggle not because the strategy is wrong—but because:
- Projections are too aggressive
- Expenses are underestimated
- Demand assumptions don’t hold
Secondary and tertiary markets can absolutely work—but only when the fundamentals are there. As a lender, we’re focused on sustainable income, not optimistic projections.
3. How we view STR vs LTR vs MTR
From a risk and underwriting standpoint:
- STR: Higher income potential, but higher volatility and scrutiny
- LTR: Most stable, easiest to underwrite and finance
- MTR: Increasingly attractive—more predictable than STR, better upside than LTR
We’re seeing more investors—and lenders—lean toward stability with upside, rather than pure peak returns.
4. If you’re starting out (especially remotely)
From a financing perspective, the strongest borrowers typically:
- Start with a stable, cash-flowing asset (LTR or MTR)
- Build experience managing a property and understanding real numbers
- Then scale into more operationally intensive strategies like STR
The biggest risk we see is investors going straight into STR without systems, and the deal not performing as projected.
5. Final thought
You’re in the right place—platforms like this give you access to real operators who’ve already gone through the learning curve.
The deals that perform—and get financed most smoothly—are the ones built on:
Stable assumptions → proven demand → strong execution
Not just best-case projections.
If you want, I’m happy to walk through a specific deal or market and show you how it would be viewed from an underwriting standpoint so you can see what actually makes sense on paper and in practice. Best of luck!
Really appreciate this breakdown — this actually clears up a lot.
What you said about STR not being "plug-and-play" anymore is exactly where I've been getting stuck. It always looks great on paper, then the deeper I go it starts to feel way more operator-dependent than I expected.
The LTR/MTR angle makes a lot more sense to me, especially starting out and being remote. I’m mainly trying to build something stable that cash flows and grows over time, not chase best-case scenarios.
I’d definitely take you up on walking through a deal if you’re open to it — would be super helpful to see how you actually underwrite something vs. what I’ve been seeing online.
- 5moKerlous TadresBusiness MemberRealtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
@Mimi L., if I were starting from scratch today, I'd skip Airbnb and go straight to mid-term rentals in Ohio, cities like Columbus, Dayton, or Cincinnati are packed with traveling nurses, remote workers, and corporate contractors who need 1 to 3 month stays, and that gives you Airbnb-level income without the volatility or the constant licensing headaches. Ohio's landlord-friendly laws, low entry prices, and strong rental demand make it one of the best remote investing markets right now, especially if you're chasing cash flow and tax benefits from day one.
Kerlous Tadres | Reafco Real Estate541 Reviews - 5moJimmy LieuBusiness MemberReal Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
Quote from @Mimi L.:
Is Airbnb still worth investing in right now or is it getting saturated? I live in NYC and want to start building a real estate portfolio ASAP, so I’d have to do it fully remote. I’m focused on maximizing ROI, cash flow, and tax benefits, but trying to pick the smartest strategy from the start. I’ve been looking at Abilene, TX and it actually looks like it’s booming for short-term rentals, which surprised me. For those actively investing: • Is Airbnb still one of the best plays right now? • Or are long-term / mid-term rentals safer? • What markets are actually working in 2025–2026? Would you start with Airbnb today if you were starting from scratch?Hi Mimi! Airbnb can still work in 2025–2026, but it’s definitely more competitive now and not as easy as it used to be, with results really depending on the specific market, local rules, and how well it’s managed. A lot of newer investors are finding that long-term or mid-term rentals are more stable and easier to scale, especially if they’re trying to build a portfolio remotely without constant operational headaches. If I were starting fresh today, I’d probably focus more on steady cash-flowing long-term rentals first, then layer in short-term rentals later once I understand systems and markets better. One market I’d look into is Columbus, Ohio—it’s been one of the stronger investor-friendly markets with solid population growth, job growth, and major companies like Intel, Amazon, Google, Honda, and others expanding there. You can still find properties that cash flow in the $120K–180K range hitting close to the 1% rule, plus strong long-term appreciation potential compared to a lot of overheated markets. Happy to connect and answer any questions you have!
Jimmy Lieu, Red 1 Realty4.9120 Reviews - 5moLeah WalczakBusiness MemberSpecialist · Phoenix, AZ · Member since 2026 · 18 posts · 7 votes
The framing worth pushing back on: "Is Airbnb still a good play" is a sub-market-level question, but you're making a property-level decision. Both things can be true.. the category is more saturated AND a specific deal can still work, if you underwrite it correctly.
I've been underwriting a lot of deals for Abilene as of late because of the data center boom.The test I use: does the property cash-flow as a long-term rental at market LTR rent, with normal assumptions — 80% of market rent for safety, 10% vacancy, 20% opex? If yes, you get the STR upside on top of a self-sustaining LTR floor, and you can switch strategies when (not if) the local regulatory or demand environment shifts. If no, you're betting the entire deal on continued STR outperformance in a market that's statistically more crowded every year, with no escape hatch.
By that test, most 2026 Abilene STR deals I've seen don't clear the LTR-floor bar unless you're getting a below-market entry. AirDNA revenue looks healthy, but ADR has compressed and occupancy has softened, meanwhile, Abilene LTR rents haven't moved much. That gap is where deals get dangerous.
To your actual question: I'd start with LTR in a boring market where you can self-correct if something breaks. Get the first deal running smoothly and know your buy-box cold. THEN layer STR onto it, not the other way around. Starting with the highest-variance strategy in the hardest-to-manage remote market isn't impossible, but it's not the play I'd make for a first deal from NYC.
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