Airbnb Dilemma, whether to invest in the Bay Area or not?

[Emmett Kelly]

Hi guys,

I'm looking to get into the short-term rental space with Airbnb & Vrbo, but I have a dilemma. I live in the bay area where properties are extremely expensive, especially places that would be desirable as tourist destinations.

Do I just get a condo in Florida for a couple hundred k and call it good? Or will it be too hard trying to manage it from across the country? I feel like being so far away I would have to hire people to do everything for me. And I fear that would significantly eat into my margins. But on the other hand saving up enough to put 20% down on a property in the bay area seems near impossible.

Does anyone have experience managing short-term rentals from across the country? Especially as a newer investor?

What about a condo hotel? I know they will pretty much do everything for you, but I have not seen much data on the margins for these, my gut tells me there is some sort of catch. Thoughts?

[Chad McMahan]

Quote from @Emmett Kelly:

Hi guys,

I'm looking to get into the short-term rental space with Airbnb & Vrbo, but I have a dilemma. I live in the bay area where properties are extremely expensive, especially places that would be desirable as tourist destinations.

Do I just get a condo in Florida for a couple hundred k and call it good? Or will it be too hard trying to manage it from across the country? I feel like being so far away I would have to hire people to do everything for me. And I fear that would significantly eat into my margins. But on the other hand saving up enough to put 20% down on a property in the bay area seems near impossible.

Does anyone have experience managing short-term rentals from across the country? Especially as a newer investor?

What about a condo hotel? I know they will pretty much do everything for you, but I have not seen much data on the margins for these, my gut tells me there is some sort of catch. Thoughts?

Emmett,
70% of my clients are out of state and either manage remotely or hire a local property manager, if they don't want to manage it, themselves. I hire a PM for all of my own STR's, even though I'm local- as I put my time into other things. No need to live where you buy, nowadays.