First-Time STR (Running the #s)

[Chris Tedeschi]

Good afternoon everyone,

Put in a reservation deposit for a property that will be an STR in Spain for us. Its our first STR and I think we're nervous about it. (which shouldnt be a surprise for a first-time buyer of an STR)

After running the numbers, we're looking at a 5% CoC return (or about 550 euros / month) after all is said and done.

I'm curious if that seems low for an STR and should we be shooting for something that either brings in a higher $$ amount or better CoC return.

What do ya’ll shoot for? Any help would be welcome.

Thanks,
Chris

[Mike Lambert]

@Erwin Groenendijk

Thank you for commenting on my comment. After re-reading it, I realized that I might have given the wrong impression that you can get these outsized returns with most properties in the Costa del Sol. As you rightly pointed out, that isn't the case and increasingly so.

Another things is that I was assuming that Chris, being a resident of Spain, would do its own management. If he doesn't, he won't be able to get the kind of returns I was talking about.

Therefore, I implicitly assumed that he'd find the right deal and do the management himself, which isn't necessarily what would happen.