How to find the right market?

[Travis Troop]

How do you decide what type rental is best for an area? Shot, Med or Long? Also How do you predict vacancy rates?

[Bryce Jamison]

"Best" will be defined by your specific goals (immediate cash flow, long term appreciation, replace your W2 job, a fun hobby).

In general, you'll get a higher ROI the shorter the stay, but the shorter the stay the more of your time and energy it will require with tenant turnover and property repairs / replacements.

Determining rents can be tricky. I check all the websites for that applicable type of rental (Zillow, AirBnB, VRBO, AirDNA, Furnish Finder). If it's a short term rental I'll get my realtor to request rental history from the listing agent. Local property management companies can also provide you an estimate.

Vacancy rates can also be tricky. In general if you have a high quality property in an area where those types of properties are in demand you'll see less vacancy. For example, a STR on Myrtle beach is going to stay rented compared to one in the middle of nowhere SC and a MTR within 20 miles of 3 hospitals will stay booked compared to one 50 miles away from one hospital. You can asks the seller for their vacancy rates, but some may not have it at all, or not have it well documented.

[January Johnson]

Quote from @Travis Troop:

How do you decide what type rental is best for an area? Shot, Med or Long? Also How do you predict vacancy rates?

There is a TON of data out there on each market. STR Insights, AirDNA, Rabbu, Awning.com, etc. In general, LTR will be the least profitable but can also be the least work. STRs will get you the most. It all depends on your goals. I'd be happy to talk more with you about it. STRs is all I do.