Investing into an oceanfront single residence vacation house

[Alex S.]

I'm starting out and already collected cash and some knowledge needed for my real estate investment deal. I'm thinking about the investment into an oceanfront single residence vacation house for short-term rentals with Airbnb/VRBO to have the ability to be in the house from time to time with my family, most likely when there is no occupancy. For that reason, I want to limit the property to short-term rentals only.

With occupancy and rates provided by a local property management company in the area, I'm looking at, even with 50% occupancy the math works fine providing positive cash-flow, taking into account all the expenses (I used knowledge from the book where I learned about Bigger Pockets and this BP calculator). The math doesn't work for long-term rentals though for the same property.

After initial research, my search was severely limited by city zoning prohibiting short-term rentals in many oceanfront areas but there are still some options left.

I'm looking for opinions of skilled investors here about short-term rentals with Airbnb/VRBO. Does it worth it in the case described above?

[Kyle Momany]

@Alex S. The STR restrictions are getting more & more strict in certain areas. This is why I always recommend to invest in areas that are more dependent on it ( Destin, Panama City, Etc.) These cities aren't going to put in restrictions on the one thing that brings them the most business, tourists. As far as Property management, I have to piggy pack on what everyone else has said. We have many investors , even out of country that self-manage to increase that return. With the right systems and people in place, you should be spending more than a few hours a month on your rental.

Let me know if you have any questions. Good Luck!