Any Ocean City investors doing STRs?

Question

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!

Robert Winters · Answer

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! 😁

Ray Slack · Answer

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

Steve Barounis · Answer

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.

Any Ocean City investors doing STRs?

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