Diverse STR locations

[Patrick J. Mayo]

I'm new to real estate. My rookie brain would like to pick 3-5 areas to purchase STRs that compliment each other so that one area is cash flowing when the other is not. Like a summer beach house and a winter cabin. Is anyone using this strategy? Personally I'd love to have STRs on the Gulf Coast, near ski resorts, and a few other spots. I'd love to visit them with my family during the off season as well. If this has merit... what would be a good combination of locations? Thanks.

[Ryan Moyer]

It all depends on your goals, risk vs reward, etc.

Diversifying is generally safer, but you'll probably miss out on the potential for huge instant rewards like the people who bought 5-10 cabins in the Smokies pre-2022 and now swim in money like Scrooge McDuck.

Diversifying less also has the advantage of having more streamlined systems/workers.  You communicate with and train 1 or 2 cleaners, handymen, etc instead of 10 different ones.  And since you provide a lot of business they are more likely to prioritize you than if you just had 1 property with them.

On the flipside, my wife and I's goal has always been to get 12 STRs scattered around the country by the time the kids are out of the house, at which point we'll move around living in each place one month at a time.   A month on the beach, then a month in the mountains, etc.