Looking to get into Short Term Rentals

[Robert Willard]

Hello-

I have been looking at getting into STR's for a couple of years now. I looked hard into Nashville in late 2020. Reached out to Realtors and even talked financing with a couple mortgage companies. The thing that kept me from pulling the trigger is the prices. I hate that properties are so expensive right now. In 2020 Nashville was a hot market for STR's and so nothing was on the market long and everything was selling at a premium. Not much has changed since then. I have not stopped looking at STR's. I am looking for some feedback-

1.  I am located near Akron.  Nashville is about 7 hours from me.  I wanted to be within driving distance and 7 hours was my limit.  Should I be looking closer to home?  

2. What are your thoughts about purchasing a STR in 2022? Prices are still high. Are you still able to get a nice return in this market?

3.  Bonus Question-What is your #1 piece of advice for a first timer trying to get into this business?  

[Mel Adams]

Hey Robert! Here’s my opinion:

1) you don't need to live near your STR to manage it. I live in CA and am managing mine in AR. A lot of people do this, you just need to have a trusted team in place and good systems. You'll have a lot more options if you look outside 7 hours. If you haven't already, read Short Term Rental Long Term Wealth by Avery Carl. It's helpful for understanding how to manage when you live out of state and has a lot of other good tid bits.

2) Still a good time to purchase a STR, just don't buy something where the numbers don't work. Tons of people are still buying in the Smokies, Florida, NC. Are you using any sort of calculator to analyze deals?

3) don’t get FOMO and buy something just to buy something, or overpay when it’s not justified by your calculated returns. On the flip side, don’t get stuck in analysis paralysis and never get in because the numbers aren’t hitting perfect metrics you wanted. Your first deal doesn’t have to be a home run! 

Also have you looked into STR regulations in Nashville? I don't know specifics of what they've implemented but I'd be hesitant starting an STR there for that reason. It's an ongoing hot topic.

Hopefully this was helpful. Happy to answer anything else I can!