Looking to buy my first time short term rental

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Looking to buy my first time short term rental

Joe Solari
Member since 2021 · 6 posts · 4 votes

Hi I’m looking to buy my first time short term rental. I live in Massachusetts I’m open to any and all areas was wondering if any one could share some info or places you have had success in.

Thank you 

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Tommy Parker
Property Manager · Charlotte, NC · Member since 2022 · 269 posts · 135 votes
3y

I found out that warmer areas are the best. However, I started out in Charlotte, NC and found it work fine for me. Best of luck on your journey! 

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  • Mackaylee BeachPro Member
    Real Estate Agent · Kansas City, MO · Member since 2020 · 1k+ posts · 494 votes
    3y

    Kansas City currently had lots of potential for rental properties. I'd love to connect and provide you with more information on our current market and available properties!

    [email protected]
    0Reply
  • Adrienne Green
    Real Estate Consultant · Chattanooga, TN · Member since 2018 · 384 posts · 330 votes
    3y

    @Joe Solari that's awesome!  STRs can do well.  If you're looking close to you, @David Menapace is the guy to talk to!  He can help you buy in some areas, and he has a great co-hosting service as well.  If you're looking further afield, I'd be happy to discuss Chattanooga TN!

    1Reply
  • Mason Jeffries
    Investor · Nashville / Smoky Mountains, TN · Member since 2019 · 110 posts · 49 votes
    3y

    TN has a few great markets for this. I personally have experience in the smokies but I know a few people who have had success in other areas.

    0Reply
  • Ben Scarborough
    Realtor · Gulf Shores, AL · Member since 2020 · 153 posts · 76 votes
    3y
    Quote from @Joe Solari:

    Hi I’m looking to buy my first time short term rental. I live in Massachusetts I’m open to any and all areas was wondering if any one could share some info or places you have had success in.

    Thank you 

    Hey Joe! Exciting to see you are interested in getting into the STR world!


    To pick your market, I usually recommend that new STR investors begin in the mountains due to less seasonality issues. If you pick the wrong beach market and you don't have other people's money to work with, it is going to be hard to build a profitable business since majority of beach markets will only rent well March-October (some even less). Some big mountain markets I still like for first buys are Gatlinburg, Blue Ridge, and the Western NC Mountains. It is critical you are running conservative numbers in today's market though in bigger markets like the ones I mentioned, with a higher supply of Airbnb listings (Higher supply = lower demand). If you would like to check out a great beach market though, I work with investors in Gulf Shores, Orange Beach, and Fort Morgan on the Gulf Coast of Alabama and would be happy to give you some info on the area and let you know some of the advantages of buying real estate in Alabama.

    Feel free to reach out if you have any questions, I'd be more than happy to help!

    -Ben Scarborough
    0Reply
  • Amanda Pivovaroff
    Member since 2023 · 5 posts · 3 votes
    3y

    I've been managing STRs for a few years now and I have to say, beach towns give you steady income all year round. We had a property in the mountains and it did great during snow season, but definitely had more "off season" months than our beach properties did. I am currently in escrow on a property on the Emerald Coast in FL, bought sight unseen. The numbers were just too good to pass up!

    0Reply
  • Kathie Russell
    Professional · Raleigh, NC · Member since 2016 · 126 posts · 123 votes
    3y
    The  market you want to be in depends upon your goals.  For your first STR, i think it is a good idea to start close to home.  After you get one under your belt, then branch out.  Beaches and mountains, as stated in replies above, are always good as are anywhere close to major hospitals or universities, large sporting attractions or other attractions (theme parks, hiking, etc.).  But also don't overlook a more modest rental in an area that just needs rooms for STR.  I have a few in small towns, these look very different than my beach properties in that they are simply a house that is a better deal than a hotel which are comfortably and tastefully furnished.  No over the top themed decor or Keurigs.  But they stay full, because 6 - 8 people can stay there for $150 as opposed to getting 3 $150 hotel rooms with no kitchen, etc.  So think about what you want to do with your first one, and choose your market accordingly.
    1Reply
  • Gian G.
    New to Real Estate · Atlanta · Member since 2022 · 4 posts · 1 vote
    3y

    Thank you for the helpful comments. 
    I'm originally from Miami and living in Atlanta at the moment. I am new to this and looking to purchase my first property within the next 10 months (mainly because my lease is up and Miami is really overpriced to rent and buy in the areas I would like to live in).

    I'm actively looking in the areas by Disney and the other theme parks to invest in a property. Based on the loan I get whether that is an FHA or conventional loan, if I have to live in the property for a year I'm ok with that. However, once the 12 months are up I would move out of the property and rent it out through Airbnb, VRBO, or even long-term, whatever cash flows better.

    I could use help in understanding how to calculate short-term rental rates and create projections based on that and seasonality in the area. I found these websites recently airdna.co and bnbcalc.com that are pulling the data using the Airbnb and VRBO rates but the issue to my knowledge and please correct me if I am wrong, is that the software does not account for seasonality.

    Does anyone have any recommendations or methods on how to calculate short-term rentals ROI/COC?

    Should I consider areas in Florida by the beach or stick to the areas by Disney and all the other theme parks?


    The communities I was recommended in addition to the ones I found on Airdna are:

    Property Name
    - Champions Gate
    - The Retreat (Champions Gate)
    - Oasis
    - Reunion
    - Windsor Hills
    - Windsor island
    - Windsor Cay
    - Solara
    - Stoery Lake

    I started a spreadsheet to piece together the fees associated with each community I find (still having problems finding the ball park figures). Also within my spreadsheet is a list of what each community offers.

    Amenity Champions Gate (Champions Gate) (Champions Gate) Windsor Hills Windsor island Windsor Cay Windsor West Side Pulte Solara Stoery Lake
    Lazy River Yes Yes Yes No Yes Yes Yes No Yes
    Pool & Jacuzzi Yes Yes Yes Yes Yes Yes Yes Yes Yes
    Childrens Slash Zone Yes Yes Yes Yes Yes Yes Yes Yes NA
    Fitness Center Yes Yes Yes Yes Yes Yes Yes Yes NA
    Studio Gym Yes Yes Yes NA NA NA NA NA NA
    Movie Theater Yes Yes Yes Yes NA NA NA NA Yes
    Sand Volleyball Courts Yes Yes Yes Yes Yes NA Yes NA Yes
    Tiki Bar Yes Yes Yes NA NA Yes Yes NA Yes
    Game Room Yes Yes Yes Yes Yes NA NA Yes Yes
    Tennis Courts Yes Yes Yes Yes NA NA Yes Yes NA
    Basket Ball Court No No No Yes Yes NA NA Yes NA
    PlayGround Yes Yes Yes Yes Yes NA Yes NA NA
    Golf Course - 18 Hole Yes Yes Yes NA NA NA NA NA NA
    Golf clubhouse and pro shop Yes Yes Yes NA NA NA NA NA NA
    Golf Cart Rental Yes Yes Yes NA NA NA NA NA NA
    Mini Golf NA NA Yes Yes Yes Yes NA NA Yes
    Bocee Ball NA NA Yes NA NA NA NA NA NA
    Bike Rentals NA NA Yes NA NA NA NA NA NA
    Wave Rider NA NA NA NA NA NA NA Yes No
    Spa NA NA NA NA Yes NA Yes NA Yes
    On-Resort Shuttle Service NA NA Yes NA TBD NA TBD TBD TBD
    Max Lease - 30 Days TBD TBD TBD TBD Yes No Yes No No
    Max Lease - 90 Days TBD TBD TBD No No No No No
    Primary Residence TBD TBD TBD TBD No No No Yes Yes
    Pets No Yes
    Canoe & Kayak Rentals No No No No No No No No No Yes
    1Reply
  • Gian G.
    New to Real Estate · Atlanta · Member since 2022 · 4 posts · 1 vote
    3y

    Does anyone have any recommendations or methods on how to calculate short-term rentals ROI/COC?

    Should I consider areas in Florida by the beach or stick to the areas by Disney and all the other theme parks?

    Should I look at a beach town instead of central Florida by the theme parks? I'd love to hear feedback and anyone's expertise.

    0Reply
  • Tyler GibsonBusiness Member
    Real Estate Agent · Orlando, FL · Member since 2017 · 1k+ posts · 2k+ votes
    3y
    Quote from @Gian G.:

    Does anyone have any recommendations or methods on how to calculate short-term rentals ROI/COC?

    Should I consider areas in Florida by the beach or stick to the areas by Disney and all the other theme parks?

    Should I look at a beach town instead of central Florida by the theme parks? I'd love to hear feedback and anyone's expertise.


     He may get many different opinions. I actually own on the beach for a short-term rental but usually encourage people to buy near Disney. I feel as if the regulatory conditions around Disney and overall vacation or traffic make them safer short-term rental investments. However, if you want to turn a profit near Disney you do need to have operational excellence. You will want to be sure to get super host if you want to be highly profitable in the Disney area.

    [email protected]407-590-9858
    GPG Team 598 Reviews
    WebsiteView Page
    2Reply
  • Gian G.
    New to Real Estate · Atlanta · Member since 2022 · 4 posts · 1 vote
    3y

    Thanks so much Tyler. I was looking at www.airdna.co if there are better websites please let me know. The areas in Kissimme / Davenport have really grown over the years. With new construction properties coming and people renting out the existing properties. 

    What should I look at in terms of saturation?

    The screenshots below are from AirDna.co
     



    It looks like prices are slowly coming down in the area as well based off of redin data center.

    https://www.redfin.com/city/93...

    0Reply
  • January Johnson
    Real Estate Agent · Emerald Coast, FL · Member since 2016 · 820 posts · 487 votes
    3y
    Quote from @Gian G.:

    Does anyone have any recommendations or methods on how to calculate short-term rentals ROI/COC?

    Should I consider areas in Florida by the beach or stick to the areas by Disney and all the other theme parks?

    Should I look at a beach town instead of central Florida by the theme parks? I'd love to hear feedback and anyone's expertise.


    The Emerald Coast is super STR friendly, and regulations are not changing here. I sell PC Beach to Navarre Beach, so let me know if you have questions about this market!

    1Reply
  • Tommy Parker
    Property Manager · Charlotte, NC · Member since 2022 · 269 posts · 135 votes
    3y

    I found out that warmer areas are the best. However, I started out in Charlotte, NC and found it work fine for me. Best of luck on your journey! 

    2Reply
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