Short Term Rental, Long Term Wealth Book Feedback

[Jayme B.]

I'm probably the only one on Bigger Pockets on a Saturday night, but was reading Avery Carl's "Short Term Rental, Long Term Wealth" and my mind is churning as usual. I enjoy the book - it gives a great overview of the STR world and specific details on how to get started. I was hoping to see a roadmap on how to go from $100k invested on the 1st STR and the strategy on acquiring a 2nd STR and so forth. That's the part I'm struggling with. I keep reading how people snowball their investments in such a short amount of time, but I can't make the numbers work.

Based on the research I've done, a property purchased for $500k will generally cashflow $15k-25k in an ideal scenario (roughly 20% CoC). My question is how do most people make the jump to the 2nd STR property if you're generating $25k per year on the high end? It would take 4 years to save another $100k before I could make another purchase based solely on the cashflow. Are you cashing out the equity and using additional revenue streams to get the 2nd one? Seems there wouldn't be that much equity to be paid out after closing costs.

Thanks for the insight!