All Forum Posts by: Michael McCarthy

I want to piggyback off Jeff with this and help him out cuz I have the same questions. I too am super interested in doing STR vice LTR but have a couple questions that may be more specific (at least I hope)

-What was the decision point or Ah-Ha moment in choosing STR vs LTR?

-Does the income and cash flow outweighs the day to day effort (if you were to for go a property manager)

-Has anyone had issues with occupancy (sans the early pandemic months) or have gone 3-6 with occupancy not enough to cover the mortgage?

-How much is the income taxed after all expenses are paid?

Thank you to eeryone who replied! It has been awesome to see everyone give some great advice here! @Luke Carl and @Julie McCoy I totally agree that I am a total rookie at this and please give me all the feedback you got, whether kind or harsh, all feedback is needed and appreciated! I definitely sound like a rookie when I also mix up my terms, but y'all knew generally what i meant so thanks for helping me out too. @Avery Carl I have heard your podcast and thought it was great!

@Mark Miles and @Michael Baum, thank you for the solid advice too. I would love to hit y'all up and get some advice about your beginnings into STR. I would been keen to hear about y'all journey and first steps you took in your first STR. Anything to help map out my blueprint.

I definitely am decided on the STR with the increased cash flow and investing in areas that I enjoy to spend time in. I want to build a business plan and blueprint before I take my first steps, so I will be definitely reading more, asking more questions, sounding like a newbie at times, and working to get as much knowledge as possible!

So I am extremely interested in STR investing. I have a close friend that is successful at investing in a couple STR as passive income on the side and I am highly interested in doing the same. I have seen some of his numbers and how well his number are now and pre-COVID, and truly believe in the model. I want to make the same leap into STR, first as an investment on the side, and maybe one day, have the ability to make it a full time gig.

I have a couple people that I could possibly partner with on this who have had a lot of experience in real estate, but not in the vacation rental market, especially STR with AirBnB and VRBO. I want to present the model to them where they would solely be capital partners and I would be the managing partner, but need some extra advice on the benefits of STR over long term buy and hold.

Areas I am extremely interested in are Sevierville/Gatlinburg region, but also know the Gulf Shores/Destin region very well too (I was stationed there before during flight school). I know they have been extremely popular in the past and have high occupancy rates most of the year, and especially in the future post-covid, will continue to be very popular. I may get some push back in wanting to invest closer to where I am stationed (coastal carolina region) with areas such as the OBX, but I am not as big of a fan of the dependency on a more seasonal region.
 
Apologies for the long post but what does the group have to say about this? Thanks!