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Updated over 2 years ago on . Most recent reply
#1 Tax Liens & Mortgage Notes Contributor
- Lender
- The Woodlands, TX
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Why I don’t invest in STR
#1 Tax Liens & Mortgage Notes Contributor
- Lender
- The Woodlands, TX
The reason I don't invest in or use my rentals as STR anymore is that if I pay a property manager 30-35% then my return is the same as a LTR so since I won't self manage I might as well just invest in LTR.
Has anyone any experience where they can pay a manager 30-35% and still net more as an STR than as a LTR ?
- Don Konipol
Most Popular Reply
Sure no reason to go the STR route if you don't cashflow more with a short term rental.
However, I have a manager for two of my STR's in Texas and the cashflow blows away any long term rental cashflow (10x). It all comes down to the property and the location.
When I was first approached to Airbnb one of my long term rentals, I was skeptical. I agreed to it if it would revenue $3,500+/month. First month revenue was $13k. Second $9k. Traditional rental rate is $2,400.
My bread and butter is LTRs. They are less risky.
- Kyle Mccaw
