HOW DO YOU GUYS DETERMINE THE BEST STR MARKET

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Leslie Anne Morris
Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
4y

I picked the best vacation market I could find to ensure high occupancy. But there is a new tool called STR Insights that you may want to check out. AirDNA and networking with other investors and learning their markets is also smart.

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  • Trent Reeve
    Atlanta · Member since 2022 · 708 posts · 639 votes
    4y

    extremely new to this myself. But my strategy, identify areas, look at property prices. you can use AIR DNA or other sites to get some basic rental numbers. But then you can look up AirBNB and VRBO properties in those areas, initiate bookings to see what prices are like. You can scroll thru the months to see how the prices change and where the prime season is and then you can put some raw numbers together. I would suggest properties that have quite a few reviews, so you know people are staying there. i personally then built out a spreadsheet that lists bedrooms, bathrooms, sq ft, any HOA costs, monthly costs, total monthly costs, annual costs, monthly break even rent $. I also include any notes that would make a property stand out (beach front, amenities, walking distance to restaurants/bars/entertainment), if it comes furnished (can cost $10-20k to furnish depending on your choices), any updates needed (flooring bad, furniture and style dated). i can then review the spreadsheet to see what numbers work for me depending on the property and which properties stand out. all that combined should show you what you can expect from certain markets.

    Just my 2 cents on how I am looking.

    1Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    4y

    I doubt there is any  software only that will do what you want. If there was, you would just get the same computer driven results that everyone else gets....no advantage for you over them. You need to figure out how to find markets via your own methods. Dig deep on the internet and especially forums like this one. (That was a hint :-)

    0Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    4y

    I picked the best vacation market I could find to ensure high occupancy. But there is a new tool called STR Insights that you may want to check out. AirDNA and networking with other investors and learning their markets is also smart.

    3Reply
  • Kevin Pillow
    Realtor · OK · Member since 2020 · 138 posts · 165 votes
    4y

    @Endory Neves One method that may help you is to leverage NARs vacation rental market reports to identify trends and learn about markets. See what counties in the country are considered vacation counties by NAR, here are some links to get you started. The NAR Vacation Rental homepage has most of the resources open to the public so take advantage of the free data they provide.

    1. 2021 NAR Vacation Counties Report - Report Here
    2. NARs Vacation Rental & Second Homes page - Here

    3Reply
  • Paul Sandhu
    Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
    4y

    Dumb luck.  There is a petrochemical refinery in my town.  I asked a realtor how much they charge to rent to contractors.  She said $1000 a week.  I put 4 beds and appliances in a house in this town and charged $840 a week for a house that cost me $10,000.  A year later I had 3 STRs, a year after that I had 8 STRs.  Now I'm up to 23 with 83 beds.

    3Reply
  • Kevin Pillow
    Realtor · OK · Member since 2020 · 138 posts · 165 votes
    4y
    Quote from @Paul Sandhu:

    Dumb luck.  There is a petrochemical refinery in my town.  I asked a realtor how much they charge to rent to contractors.  She said $1000 a week.  I put 4 beds and appliances in a house in this town and charged $840 a week.  A year later I had 3 STRs, a year after that I had 8 STRs.  Now I'm up to 23 with 83 beds.

    The dumb luck technique has a high ROI 😂 
    2Reply
  • Ryan MoyerBusiness Member
    Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 991 posts · 1k+ votes
    4y
    Quote from @Endory Neves:

    What softwares do you guys typically use in order to find the best STR market that is trending. Any Realtors/STR INVESTORS operating in FL?


    I see Orlando listed in your post. Is that where you live? Depending on your budget, you're already right in the middle of one of the best STR markets.

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    1Reply
  • Lucie Tighe
    Property Manager · Tampa, FL · Member since 2022 · 147 posts · 66 votes
    4y

    I can connect you with PM in many FL markets. Among other things, they can help with revenue projections on properties you're considering.

    0Reply
  • Shawn McCormickPro Member
    Realtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votes
    4y

    @Endory Neves Looks like you are in Orlando. You are in the middle of one of the absolute best places to be. You could pick up units beachside, East or West and/or stay right near the theme parks. The Disney area has many STR communities that are purpose built for that reason and it is proven, not nearly as much data to collect or city/county rules to sift through. You will have to figure out what your budget allows and make sure that specific size/type/location of home performs well and isn't in a more saturated field.

    Best of luck to you.

    1Reply
  • Endory Neves
    OP
    Member since 2022 · 12 posts · 6 votes
    4y
    Quote from @Trent Reeve:

    extremely new to this myself. But my strategy, identify areas, look at property prices. you can use AIR DNA or other sites to get some basic rental numbers. But then you can look up AirBNB and VRBO properties in those areas, initiate bookings to see what prices are like. You can scroll thru the months to see how the prices change and where the prime season is and then you can put some raw numbers together. I would suggest properties that have quite a few reviews, so you know people are staying there. i personally then built out a spreadsheet that lists bedrooms, bathrooms, sq ft, any HOA costs, monthly costs, total monthly costs, annual costs, monthly break even rent $. I also include any notes that would make a property stand out (beach front, amenities, walking distance to restaurants/bars/entertainment), if it comes furnished (can cost $10-20k to furnish depending on your choices), any updates needed (flooring bad, furniture and style dated). i can then review the spreadsheet to see what numbers work for me depending on the property and which properties stand out. all that combined should show you what you can expect from certain markets.

    Just my 2 cents on how I am looking.


    I appreciate you for sharing that Trent! Gotta do what it takes and run the numbers to make sure it’s a good investment! 

    0Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    4y

    @Endory Neves, I have 3 STRs in Florida.  What questions can I answer?

    0Reply
  • Brian Kragerud
    Investor · Member since 2021 · 29 posts · 19 votes
    4y

    @Kerry Baird Are your STRs located beachfront (Condos) and what can you share are your challenges and costs for (ALL) insurances required including supplemental specific to your STR properties and best insurance agencies for Florida. I can search and find topics on this subject but things seem to change with conditions and regulations, such as insurance pools granted yearly for agencies, renewals vs. new purchase, property conditions (roofs), flood zones, and you know better than I.

    0Reply
  • Endory Neves
    OP
    Member since 2022 · 12 posts · 6 votes
    4y
    Quote from @Bruce Woodruff:

    I doubt there is any  software only that will do what you want. If there was, you would just get the same computer driven results that everyone else gets....no advantage for you over them. You need to figure out how to find markets via your own methods. Dig deep on the internet and especially forums like this one. (That was a hint :-)

    True!
    0Reply
  • Endory Neves
    OP
    Member since 2022 · 12 posts · 6 votes
    4y
    Quote from @Leslie Anne Morris:

    I picked the best vacation market I could find to ensure high occupancy. But there is a new tool called STR Insights that you may want to check out. AirDNA and networking with other investors and learning their markets is also smart.

    Thank you Leslie! 
    0Reply
  • Endory Neves
    OP
    Member since 2022 · 12 posts · 6 votes
    4y
    Quote from @Ryan Moyer:
    Quote from @Endory Neves:

    What softwares do you guys typically use in order to find the best STR market that is trending. Any Realtors/STR INVESTORS operating in FL?


    I see Orlando listed in your post. Is that where you live? Depending on your budget, you're already right in the middle of one of the best STR markets.

    I’m on the road now six months of the year. But yes I did live in orlando for a few years! That’s true it’s a great location and also a hot market since it’s where everyone wants to go. Makes it more difficult I guess to find something that stands out compared to what’s already out there
    0Reply
  • Kerry BairdPro Member
    Rental Property Investor · Melbourne, FL · Member since 2011 · 3k+ posts · 2k+ votes
    4y

    STR Insights subscription allows you to filter houses/markets by the expected return.

    @Brian Kragerud

    I have one 5/5 house that is a block to the ocean.  The other 2 houses are 3/2 and 4/2 and are in the middle of the barrier island, a couple of blocks to the ocean or to the intracoastal waterway.

    Insurance: I use Proper for my STRs. Don't fall off your chair!  $5511 for the smaller houses and $18,000 for the big one near the water.  This includes rent loss coverage.

    0Reply
  • Brian Kragerud
    Investor · Member since 2021 · 29 posts · 19 votes
    4y

    Good to know when analyzing my expenses on properties of size. I figured from what I get from others posting and or commenting on podcasts the insurance costing and coverage problems in Florida. I did hear they should get better in 2023 as this is a big topic at higher levels that's got attention to resolve. Insurance companies should be able to provide owners some outlook of what they are hearing and planning for 2023.

    Thank you for the information.

    0Reply
  • Alyssa Mcgaha
    Property Manager · Davenport, FL · Member since 2022 · 12 posts · 11 votes
    4y

    Hey there! 

    I work with Vacasa Property Management and can assist with you getting income projections statewide. But as someone mentioned above, Central Florida is a great year round rental market. It has shown even through 2020, it is not going anywhere!

    1Reply
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