"Buy only in top tourist areas" and other b.s.

[Collin Hays]

Guys and gals, sometimes I get a belly full of hearing the same old conventional wisdom over and over.  Today I'm going to tackle this one:  "Buy only in the top tourist areas."   Are we more worried about investing sexy, or investing for more profit?  

I have a good friend who lives in Amarillo, Texas.  No one goes to Amarillo to vacation.  Nice city and all, but it's not exactly Aspen, Tahoe, or Gatlinburg.  It's in the middle of nowhere USA.  

My friend has been systematically buying up inexpensive homes, with cash, within a mile of Interstate 40, which runs right through Amarillo.  His typical purchase price is around $125,000 for a small home.  He is then getting anywhere from $40,000 to $50,000 per year in night rents.  The houses are paying for themselves within 3-4 years.  He already owns 18 that are completely clear.   Net to him, that's over $650,000 a year income.  I'm sure that allows him some posh accommodations in Aspen whenever he wants.  

Folks, it pays to look at options besides what the herd is telling you. Do your own homework. Look around your hometown. The herd is usually dead wrong. Your very best STR options might be within a few miles of your house.