Starting New STR and Nervous About Market - Would LOVE Feedback!

[Rhonda Greenhaw]

Hey everyone!

We are taking out a HELOC on our home, updating it and adding some great features, and putting it out there as a STR. We live on one of the only lakes in Broward County where you can have boats with motors, and we are adding a pool and spa, outdoor kitchen and patio with roof, as well as converting our carport and pantry/laundry room into a master suite. We are also doing a ton of landscaping and just really going all out to make it "Instagram-able"...we live in between Fort Lauderdale & Miami just west of 95. We are super close to the Hard Rock Casino, and the stadium where the Dolphins play is only a few miles away as well. But best of all - we are less than 5 miles to some of the best sand beaches in the world.

BUT...what happens if we go into a major recession??? This is our entire future we are putting on the line, so I'm super nervous. We have done some analysis on the place - there are a couple of comps on the lake and in our neighborhood that we can compare and I feel confident that we can get an excellent nightly rate and brisk business - we are going to buy a jet ski, bikes, kayaks and a pontoon that will be rentals - the entire place will be a laid back, party with style...BUT, if the economy crashes - I figure the worst that can happen is that we've upgraded our life.

Basically, the HELOC would add about $600 to our monthly bills - which is incredible - and since our house was almost paid off, I did the comps on ARV and I figure we will near double our home value - so for no cash out of pocket, the worst thing would be that we aded $600 to our monthly bills but nearly doubled our home value...So...even if the economy crashes - my partner and I both have day jobs...sooo, I think we should be pretty smooth sailing...

BUT...as I said - I am TOTALLY new to this and would love feedback, criticism, word of wisdom, or a pat on the back (hopefully...).

Thank you all!!!

Rhonda