2 x STR property (side by side)

[David C.]

Hi,

I am looking to buy 2 STR inside a resort that sits side by side next to each other with more or less the same specs.

Any pros here can give me some pros or cons on doing that or why I shouldn't purchase 2 properties sitting side by side?

Thanks,

David

[Randall Alan]

The first thing I question is "Inside a resort". Does that mean they are managed, where you have all sorts of HOA / Management fees? That might be concerning... often you don't really know how that is going to look until you are into it. So being "into it" twice (all at once) might double your surprises. It might make more sense to buy in, see how it goes, then buy in again.

I'm not a fan of overhead fees (property managers, HOA's, etc.) They eat away at your profit, and they often control what you can and can't do with your property (depending on what type of property you are buying into).

Also, know your exit strategy. If you want to sell your property, how does the management company / HOA affect your planned strategy.

The only other thought is "As one goes, so does the other"... so if something goes sideways (They raise their fees, there is a covid outbreak and tourism tanks again, etc), you are in for twice the trouble you might be in if you were buying in two different areas.

Wish you all the best!

Randy