STR investment areas for 1st time STR investor .

[Tres Fern]

Good areas to invest in STR for 1st time STR investor . Living in MA and looking to invest in MA or out of state .

[Alfonso Partida]

Quote from @Tres Fern:

Good areas to invest in STR for 1st time STR investor . Living in MA and looking to invest in MA or out of state .

Hey Tres, I've got a list of states and areas you can explore. Sending you a private message now.

[Samuel Diouf]

Hey Tres,

Columbus, Ohio is a market you should look into. There are multiple large hospitals and plenty of large companies here, all that have employees who travel for work and are great STR tenants. In Columbus I would look into neighborhoods south east of Downtown, such as Merion Village, Livingston Park, and Old Oaks.

[Stefan St. Marie]

Are you planning to use this as a vacation home from time to time?
Or going strictly on the ROI?

[Manny Vasquez]

Tres - For starters I would recommend you read "Short Term Rental, Long Term Wealth" by Avery Carl; You can find that book right here on BiggerPockets. This book will lay the groundwork and the basics to get you started. Once you read the book, I would reach out to a SuperHost on Airbnb and ask if they need any help n "hosting" their properties and that you would like to work for them and/or be mentored. This way you can become a Co-Host. This will give you some hands-on experience and an opportunity to put into practice what you have learned from reading the book. You will also gain valuable experience that you can leverage for other opportunities.

Speaking from personal experience, I have several STR rentals in California (I co-own STRental Pros in Orange County, Los Angeles County, and Riverside County). Before I decide to STR a property, I first pick the city in which I want to STR the property. I then check to see if there are any local laws that limit the number of STR rentals in the municipality. For example, the city of Palm Springs has a hard-limit on the number of STR rental permits it allows (and it has a huge "wait list"). Some cities don't allow STR's at all. If the city is ok with STR's, I then check to see what permits are required for STR operation. After doing this, I then run the property through Airdna.co and/or Mashvisor.com Both of these tools will give you projections of what type of rental rates, price per night, bookings, occupancy, seasonal variations, etc. I also open up Airbnb and/or VRBO so that I can cross-check the properties. The combination of these tools will give you a good idea on what you can expect. 

I also like to "borrow" ideas and look at what amenities are most popular in that area so that I can include those amenities at my property. Based on the above projections I receive, I then "run the numbers" to see where I project to end up each month. Depending on the results, I then decide to move forward with the property or look elsewhere.

I hope this helps and good luck on your STR journey!

[Andrew Steffens]

If you like sun and sand I would say Florida Gulf Coast :)

[Tres Fern]

Quote from @Stefan St. Marie:

Are you planning to use this as a vacation home from time to time?
Or going strictly on the ROI?

ROI

[Stefan St. Marie]

Looks like I should have asked more questions :) 

Okay some of the comments are assuming you plan to be the main operator and you won't hire a property manager. 
If you want to go that route then it would be best to get some experience first. 
Either with the cohosting route that @Manny Vasquez mentioned or doing something like rental arbitrage. Personally I think the margins are too thin on arbitrage to make sense, but its an inexpensive way to get experience fast!

So if you're going full hands on and operating something yourself then I'd suggest something within 20 min from where you live. 

Whatever you land on, make sure you save enough capital for furnishings and improvements. 
The name of the game these days is having amazing design and amenities to stand out from the competition. 

[Spencer Riche]

I strongly suggest adopting multiple investment strategies as a safety net in case a single short-term rental (STR) approach doesn't work out. Each STR property I acquire must meet two financial benchmarks: a gross rent multiplier (GRM) of 5 or less [Property value divided by projected income must equal 5 of less], and compliance with the 1% rule as LTR, which serves as a backup if regulations shift or if there's a decline in STR income. I've observed too many new investors suffer severe losses in recent years by solely relying on the STR model, paying too much for properties, and then being forced to sell them at a loss when economic conditions tighten.

The past two years, I purchased over 30 houses in 6 different States, and my strategy of diversifying investment plans has been crucial. I've focused on less popular markets in middle America near hospitals, universities, and major employers that attract work-related travel. This approach puts me in competition with smaller, local investors rather than in oversaturated tourist-heavy markets, offering a better ROI.

My team also developed software that scans national MLS listings to identify the most profitable STR properties which may be of some value for your search. I'd greatly appreciate feedback on it at strfinder.co!

[Alex F.]

Like others mention I would recommend the book Short Term Rental, Long Term Wealth

There are other good books, too - We had a number of them and, about a year ago, donated them to a friend getting into the STR business.

As your first STR, I recommend an area you are familiar with. There are various strategies, such as vacation areas, business travelers' areas, etc. We have been targeting vacation areas we are familiar with. We have always been heavy travelers so this has been a great fit.

Another item to watch for are areas that are tightening regulation and areas that are the wild west that now have an oversupply of airbnbs.  

I would avoid areas with no regulation unless you find a hidden gem.

There are still many gems out there specialy in tightly restricted markets. 6 months ago we missed on a property that went up for sale. It hit Zillow for just a handful of days. The Airdna estimate for this property was 80K/year, and it is accurate as we own one nearby. The property sold for 330K - that's an ROI of 15-30% per year assuming no loan.

[Alyson Gordon]

You can successfully and fairly easily manage an STR out of state, however for your first one I think it can be helpful for it to be within driving distance (3 hours or less) and it will simplify filing / paying for taxes and tax preparation. You can find many markets across the US so i'd try to buy something in MA if you can as you learn STRs but if not, know that you can do well in any "good" market.

A lot of that comes down to your personal goals - cash flow? return on equity? COC? there are tools like STR insights, bnbcalc and airdna that can help identify a good market but ultimately a lot of your success will come down to location and how well the property is managed. Good luck!

[Sarah Kensinger]

This is such a personal question that at times I have cringe when I see it brought up. As I'm sure you've noticed the options, ideas, and opinions are endless! 

Start narrowing down the list by thinking of where you would like to visit. Whether you use this vacation home or not, you'll need to visit it from time to time. From there narrow down to certain cities or areas that draw you and start looking there. Talk to STR realtors and PM companies to see what the market is doing right now. From there start running numbers on properties to see if they would pencil. It's not too hard to choose, but at times you must shut the voices out to get the clear direction needed.

[Zach Edelman]

I'd start off with reading Avery Carl's book "Short-term rental, long-term wealth" if you haven't already. This could give you some inspiration on where to invest, or at least narrow it down!

[Yiwei Cheng]

Welcome to the STR world!! There's not an easy answer you may be looking for.

When deciding where to invest - what is your criteria for your STR? Is it for you to vacation (you want to actually visit there & stay) or is it an investment property? (so location doesn't matter as long as you make xx dollars or return)

Do you want to manage it yourself or hire a manager so it's passive to you?

Based on what you're looking for, there are different recommendations!

[Yiwei Cheng]

I would add though that you do not have to invest in a traditional vacation market to make money.  You can make great returns & cash flow in places like the Midwest.  I'm in Cincinnati, and own & manage 27+ properties and would be happy to share our actual revenue numbers with you if you are interested.