All Forum Posts by: Andrew Steffens

How is ROI? I'd rather buy a $600k cabin producing $100k in revenue than a $300k cabin producing $30k.

Honestly I would rate them 3-4*.  They were upfront of everything and are paying (as long as they do complete payment).  I would not give a 5 because that will give future hosts the impression they are great guests.  Great guests do not punch holes in other peoples property even if they pay.  I would expect my Uber rating to go down if I smash the guys window out even if I apologize and paid.

My 2 cents -

You mentioned "managing" STR's but mostly spoke from an owner's POV. Managing STR's and owning STR's are two different ball games. I own 5 STR's and manage about 65 (total) so I do get the POV of both.

The title of your post is "Do I just need more money", and I would say yes, no, and it depends. A $250k and lower entry point is about the lowest barrier to entry anywhere (you cannot even get in the Tampa market for STR under $350k (or at least be successful) and even then it is rare to find positive cash flow. There is a lot of lower end inventory because it is the lowest point of entry. Upper middle and middle tier is competitive but not saturated in a lot of markets, because its harder to get into those price points.

Never seen a septic system without a field.  I think septic with a field is enough of a turn off.  It would have to spectacular for me to consider, personally.

Not sure if you have it titled in an LLC or personal. In my experience here in FL most banks will only do HELOC on primary residence. Most, but not all. Last I checked TD bank was doing it on primary + up to 4 investment properties, up to 90% LTV. If this does not work for whatever reason, you can look at biz lenders like Amex Blueprint, Bluevine, or others but they are not cheap. If you have an LLC, you can look for low doc or no doc lenders "credit driven". Also through TD I did a 2 page app they pulled my credit and I walked out with a $100k LOC. I also have one at WF for $50k very easy.

I am with @Trent Reeve - you will struggle to succeed in most situations. All of my STR's automatically get marketed to attract mid term stays in addition to STR guests and can even easily take on a LTR guest. However a mid term only property cannot, and will struggle. I imagine there are other towns nearby with more relaxed laws and should make for a more sound choice.

I agree.

I tell my clients, especially those new to STR's a few things:

1. This is the post COVID world where supply frequently outpaces demand.  The larger and/or more unique the stay the better you will do.  There are still successful "average" stays i.e. renovated 3/2 with minimal amenities but they have to compete on price.  Some people who purchased "average" properties did so in 2019 and can be successful by competing on price, but those purchasing in 2025 at 2x the price and 3x the interest rate can not compete on price.

2. Best practices must be followed.  This should go without saying at this point but professional design and furniture, professional photos, and professional management.  You do not necessarily need to hire out to achieve that but if you are DIY for any of the above you need to produce professional results.

3. Cast a big net. I tell my clients that buying an STR is like fishing with a net. You want as big of a net as possible to catch as many fish as possible. I have seen beautiful bachelorette themed properties flop here (Tampa). The reason why? Bachelorette parties only make up maybe 15% of the travelers here and multi generational families and guys coming in for a golf or fishing trip do not want to stay in Barbie's dream house.

I agree with John - STR's like hotels are calculated on nights. Although I am not sure if there is a distinction for city ordinances or tax laws. Frequently vacation packages are marketed as 4 days/3 nights so there may be some nuance on days/nights there.

Most of our hot tubs are in ground spas attached to pools and are a part of the pool service.  That said over the years we have had a few traditional standalone tubs.  We had to devise systems and what we had come up with is the cleaners cleaning the tub when used (put tape on cover, if seal was broken then it was to be cleaned).  They also dropped in chlorine.  This worked well, and our maintenance techs became handy with most things.  If it broke we called a company.

 Yes, that is what I use.  It is built for larger PM's.  DM me if you want an intro.