First STR questions

[Cole Allen]

Hey all! I started my REI journey in Q4 of last year and have since picked up 2 properties. They are local long term rentals with very little if any cash flow. But it got me in the game and they're in great areas🙏
That being said, this year I really would like to purchase a vacation home / STR in a touristic place like a Pigeon Forge, Broken Bow, Destin, etc. 

I know many of you have STR's and I was wondering if you had some advice / things to look for when going to purchase one from your experience? Im a little lost. It would mean a lot. Thanks everyone! 😃

[Travis Timmons]

The markets that you mentioned come with a TON of buyer competition. It's really hard to get into a property that has returns worthy of the amount of work and expense that it is going to take to get a place up and going. When picking a market, find your unfair advantage. We all have one. Is it a place that you grew up vacationing, that you used to live near, some niche hobby that has a travel/tourism element (ice fishing, hiking National Parks that aren't the 6 that everyone knows, motorcycle rallies, etc.), or some other specific knowledge that would give you an unfair advantage over other investors?

Do not underestimate how difficult and expensive it is to get a property market ready. It's hard. And you're going to bleed cash for several months all the while crossing your fingers, stressed out, and hoping that it is going to work. It takes some serious guts and a good cash reserve. Coming into a STR project strapped for cash is a bad idea. The good news is that once you get on the other side, I have found that self management from a distance is not as hard or time consuming as I thought it would be. You can also buy a turn key, furnished place in a mature market, but you're going to pay up for it. That seller knows how much the property can make. It will be priced accordingly. Find the unsuspecting homeowner that doesn't know the true potential of his/her property.

Feel free to reach out with any specific questions. We got our first STR up and running last summer and just got under contract on our second. The biggest specific piece of advice that I would give is in regard to timing. To the extent that you can, make sure that you get a property up and listed as the busy season is starting. You'll become fully occupied - or close to it - in the first 30 days given the search results bump for new listings and will get a MUCH needed injection of cash right from the start.