First Time Investor - Short term or Long term rentals?

[Andrew Rader]

Hello - I am a first time investor and am stuck on the decision of whether to start with short term or long term rentals. I think it would be best to start with one focus but can’t decide on which is better to start with. Open to suggestions for how to go about this decision. Thanks!

[Alex Gunnerson]

Hi Andrew, this is going to depend on your goals with real estate. STRs have become very popular lately. Finding long term rentals that will cash-flow has become significantly more challenging with home prices continuing to increase. With that being said, STRs are much more active investments than long term rentals and require much more attention so make sure you have the time to commit to keeping up with your STR if you go that route.

I would also recommend investing in properties that have multiple paths towards success. STRs are crushing it right now, but 5 years from now that might not be the case, so you want to make that property could at least stay above water as a long term rental, or you could sell it and not be out a lot of $$$. It sounds like you are asking the right questions right now, good luck on your pursuit towards your first property!