Good market for short term rental can put 40-50k down

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Good market for short term rental can put 40-50k down

Tuli Green
Member since 2021 · 30 posts · 1 vote

Was wondering anyone have a good str market that I can cash flow around 25% and purchase for anywhere between 175k and 250. I would like to put down anywhere between 40-50k but can go to as high as 70k. I know there is obviously place like Orlando. But not sure if it works in my budget to get best bang for my buck. So was wondering if anyone has any good ideas like Orlando with in budget.

Thanks in advance

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John Carbone
Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
4y

I would be careful investing in areas that do not have established str laws. Also, you want to be in places that have always done well with short term rentals. Every market is on fire now over the past 2 years because of covid. Research and find areas that still performed well in 2019 and before. A few years from now you could start seeing fire sales of ghost town Airbnb bubbles when domestic travel slows down and/or when big cities make it more appealing for people to travel post Covid. 

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  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    4y

    Wynnewood Oklahoma or Borger Texas.  Refinery contractors with a per diem.  Robinson Illinois too.

    3Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
    4y

    @Tuli Green Unfortunately you would be limited to small condos that aren't going to get you anywhere near the returns you are looking for in Orlando. You would need to be in the $400's to get a townhouse in a top tier community to get anywhere near the returns you want. Can't speak of any other markets though, best of luck and keep us posted if you find something!

    0Reply
  • Jay BreitlowPro Member
    Property Manager · Orlando, FL · Member since 2020 · 138 posts · 85 votes
    4y

    Agreed with Shawn here.  We do manage a couple properties in a condo development that will get you around 15% cash on cash return.  Not sure what the target return is for you Naftali

    [email protected]407-499-2954
    0Reply
  • Tuli Green
    OP
    Member since 2021 · 30 posts · 1 vote
    4y

    @Paul Sandhu

    Thank you will look into those markets

    0Reply
  • Tuli Green
    OP
    Member since 2021 · 30 posts · 1 vote
    4y

    @Shawn McCormick

    Thank you. Do you have properties that will get me those returns in the 400k range? I can up my budget if the deal is very solid

    0Reply
  • Michael Weigum
    Real Estate Agent · Santa Rosa Beach, FL · Member since 2019 · 112 posts · 116 votes
    4y

    Hi @Tuli Green,

    That sounds like the perfect combination for investing in Ocean front / Ocean view condos in Myrtle Beach right now. I just went under contract on a unit that fits those parameters. Let me know if you would like me to set up a search for you.

    1Reply
  • Myrtle Mike ThompsonBusiness Member
    Realtor · Myrtle Beach, SC · Member since 2016 · 352 posts · 204 votes
    4y

    @Tuli Green like my friend @Michael Weigum mentioned, Myrtle Beach has what you're looking for.

    [email protected]843-999-2301
    Myrtle Mike Real Estate581 Reviews
    WebsiteView Page
    1Reply
  • Steven Goldman
    Lender · PA · Member since 2019 · 535 posts · 461 votes
    4y

    The short term rental market in Philadelphia is on fire. 

    2Reply
  • Tuli Green
    OP
    Member since 2021 · 30 posts · 1 vote
    4y

    @Steven Goldman

    Thanks I will check that out.

    0Reply
  • Tuli Green
    OP
    Member since 2021 · 30 posts · 1 vote
    4y

    @Steven Goldman

    Do you know what area specifically are the short term rentals on fire? Like what zip codes?

    0Reply
  • Humberto Valle
    Real Estate Agent · El Paso, TX · Member since 2020 · 34 posts · 8 votes
    4y

    Hi all! I’d like to add Texas. Depending on the style/approach for your str business. Plan the type of business you want to run and then look for the market and then property that matches your ideal managerial and skill setup… 

    1Reply
  • John Carbone
    Realtor · Gatlinburg · Member since 2020 · 1k+ posts · 957 votes
    4y

    I would be careful investing in areas that do not have established str laws. Also, you want to be in places that have always done well with short term rentals. Every market is on fire now over the past 2 years because of covid. Research and find areas that still performed well in 2019 and before. A few years from now you could start seeing fire sales of ghost town Airbnb bubbles when domestic travel slows down and/or when big cities make it more appealing for people to travel post Covid. 

    7Reply
  • Steven Goldman
    Lender · PA · Member since 2019 · 535 posts · 461 votes
    4y

    @Naftali Green   dm me and I can make a suggestion. 

    0Reply
  • Tuli Green
    OP
    Member since 2021 · 30 posts · 1 vote
    4y

    @Humberto Valle

    Texas is huge, which area in Texas are you referring to?

    0Reply
  • Andrew C.
    Investor · Forest Hills, NY · Member since 2014 · 101 posts · 52 votes
    4y

    @Steven Goldman I thought STRs were heavily regulated in Philly?

    0Reply
  • Steven Goldman
    Lender · PA · Member since 2019 · 535 posts · 461 votes
    4y

    @Andrew C. No they are not. Many realtors I know have 20 or more doors in that configuration as they are cash cows.

    Short not all inclusive summary of regulations:

    You need a Zoning Permit for limited lodging to rent your home for up to 30 consecutive days to any one person or group.(This is about taxes)

    You need a Zoning Permit for Visitor Accommodation:

    • To rent your home for stays of 30 days or fewer.
    • If the property is not your primary residence.
    Housing requirements
    • Smoke alarms must be installed:
      • In each bedroom.
      • In the hallway in the immediate vicinity of the bedrooms.
      • On each floor of the home, including basements.
    • Carbon monoxide alarms must be installed:
      • Within 15 ft. of the entrance to every bedroom or within 15 ft. of a bed in sleeping areas if there isn’t an enclosed bedroom.
      • Centrally on a wall or the ceiling, but not directly in front of a door to a bathroom or within 5 ft. of a cooking appliance.
      • Under the installation requirements for smoke alarms if they are combination smoke and carbon monoxide alarms.
    • You can’t post signs for lodging on your home.
    • The home can’t be occupied by more than three people (including the owner and renters) who aren’t related by blood, marriage, life partnership, adoption, or foster-child status.
    • You cannot change your house so that it no longer resembles a private residence.
    Information you must provide your renters
    • Renters are only allowed to have guests between the hours of 8 a.m. and midnight.
    • You must tell renters the trash and recycling collection days and any trash disposal rules and regulations. You must provide proper trash containers for renters.
    • Excessive noise is prohibited and violators are subject to fines and penalties.
    • The owner or their designee must provide contact information to the renters. The contact person must handle any complaints from the renters.
    It is not that onerous and the licensing procedures are available on line.

    I always recommend that you speak with a accomplished realtor in the area who deals in short term rental properties. DM me if you want a recommendation.

    4Reply
  • Julianna Gimelli
    San Luis Obispo · Member since 2018 · 15 posts · 3 votes
    4y

    @Michael Weigum What return do these condos produce?

    0Reply
  • Julianna Gimelli
    San Luis Obispo · Member since 2018 · 15 posts · 3 votes
    4y

    @Steven Goldman Are they producing 15% returns?

    0Reply
  • Humberto Valle
    Real Estate Agent · El Paso, TX · Member since 2020 · 34 posts · 8 votes
    4y

    @Tuli Green -Sorry! lol  Any major city in Tx of course, I'm out of El Paso :)  We're seeing many out-of-state and international buyers come to this market as things heat up in the bigger and touristy markets. El Paso provides a huge commercial value to the real estate market - its logisitics, commerce, and military that keep the market steady and fairly balanced. We have the borderplex with NM and Mexico acting a hub entry. Large companies call it home, Fort Bliss is one of the largest bases in the U.S. and has a constant flow in/out of military families looking to rent or buy to take advantage of their VAs and for most that means having their stipends almost or fully covering their mortgages. El Paso is a waking giant :) 

    1Reply
  • David Bain
    Agent · Honolulu, HI · Member since 2017 · 97 posts · 48 votes
    4y
    Originally posted by @Humberto Valle:

    @Tuli Green -Sorry! lol  Any major city in Tx of course, I'm out of El Paso :)  We're seeing many out-of-state and international buyers come to this market as things heat up in the bigger and touristy markets. El Paso provides a huge commercial value to the real estate market - its logisitics, commerce, and military that keep the market steady and fairly balanced. We have the borderplex with NM and Mexico acting a hub entry. Large companies call it home, Fort Bliss is one of the largest bases in the U.S. and has a constant flow in/out of military families looking to rent or buy to take advantage of their VAs and for most that means having their stipends almost or fully covering their mortgages. El Paso is a waking giant :) 

    I'm a huge fan of El Paso right now.  I'm an Army veteran myself and do a lot of relocation here in Hawaii. The cash flow looks great there. 

    0Reply
  • Tuli Green
    OP
    Member since 2021 · 30 posts · 1 vote
    4y

    @Humberto Valle

    Thank you will check it out

    0Reply
  • Hardik Patel
    Member since 2019 · 22 posts · 13 votes
    4y

    @Humberto Valle @David Bain what type of investment properties do you have in El Paso? We are looking into a potential short term rental on the North East side of town, trying to gather more data on type of visitors to the area?

    Thanks

    1Reply
  • David Bain
    Agent · Honolulu, HI · Member since 2017 · 97 posts · 48 votes
    4y
    Quote from @Hardik Patel:

    @Humberto Valle @David Bain what type of investment properties do you have in El Paso? We are looking into a potential short term rental on the North East side of town, trying to gather more data on type of visitors to the area?

    Thanks


     I don't personally have any.  I've got some friends who work in the El Paso market and are huge investors as well. 

    0Reply
  • Derick Bonsu
    Investor · Washington, DC · Member since 2018 · 93 posts · 54 votes
    4y
    Quote from @Steven Goldman:

    The short term rental market in Philadelphia is on fire. 


     Isn't there a lot of regulation out there in Philly

    0Reply
  • Derick Bonsu
    Investor · Washington, DC · Member since 2018 · 93 posts · 54 votes
    4y
    Quote from @Derick Bonsu:
    Quote from @Steven Goldman:

    The short term rental market in Philadelphia is on fire. 

    Disregard. I noticed your detailed post

     Isn't there a lot of regulation out there in Philly


    0Reply
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