$8K per month in cash flow w/ STRs?

Question

Hi Everyone, question about cash flow from short term rentals. If I have a goal of getting $8K a month in cash flow from STRs, would you say that the best way to achieve this goal is to buy many small properties or 1 or 2 large properties within the next year? I have $300K to invest and live in northern CA (a very expensive market!) and am looking at vacation areas up here in norther California. Thanks.

Mike Shulman · Answer

Definitely larger nicer properties. I have a 4plex and a lake home. The lake house makes more and cost less to run. And the fact that it's less the a quarter of the work is a big plus. And you should easily be able to make $8k a month from one house is you buy right. Well, at least in my market you could.

Alex S. · Answer

If you get a 20% down loan, you are in the $1.5MM range.  Depending what market you are searching...it'll be tight to get something really nice in NorCal, but totally possible!  I'd get 1 property if I could, but the biggest priority is the quality of the deal.

Gerald Pitts · Answer

I think markets are the biggest driver.  Find out where the biggest bang for your buck is. Also agree with less doors when possible.

Paul Sandhu · Answer

I was getting $2k a week on a $16k house pre covid. It's been vacant since April of 2020.

Bruce Woodruff · Answer

Less properties is less headaches - in a way....But $8k a month net is going to require good ones, I'd say 3-4 properties

Are you staying in Cali? Or open to a move? You aren't getting much there with $300k, your loan payments will knock out most of the profit I would think....

Do some searching on here and you will find what people think are the hot affordable areas for STR.

John Underwood · Answer

I think you would 2 larger properties and to get them in a prime market that has little off-season.

Southern Ocean front or Pigeon Forge / Gatlinburg areas.

$8K per month in cash flow w/ STRs?

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