100K in Short Term Rental Income for 500k Purchase

[Matt Schreiber]

Hi Everyone, I wanted to reach out and maybe hear from realtors or investors who feel like it is possible to get 100k in rental income for around a 500k purchase in their market. I personally invest in Panama City Beach, Pawleys Island, Tybee Island, Asheville and Avon, NC. The only one out of those markets that has some potential to hit those numbers is Avon, NC but I would say that is a stretch. I think 500k can get you around 70k with the right property in Avon but that is probably the max. The other markets not really possible or close. I had been looking in Blue Ridge, Bryson City and Gatlinburg but also looks like not even close. Recently I've been making offers and found these two properties right around 500k that each did over 100k in rental income last year. The first one has an HOA that is changing the rules to not allow Short Term Rentals anymore and the second one had 6 offers and I didn't get it. It seems like these big houses or lakefront houses have the potential to do those types of numbers and are still affordable enough in just a few markets but I was curious if anyone was seeing these types of possibilities in their market or in the markets they invest or work in.

https://www.zillow.com/homedetails/189-Headwaters-Rd-Valley-...

https://www.zillow.com/homedetails/6049-Boardwalk-Dr-Tobyhan...

[Ryan Moyer]

These days it's more about finding the right deal than the right market.  It's not like it was a few years ago where you can just waltz into a market with a $500k pre-approval and guarantee yourself $100k income.  Any market where you can do that nowadays likely has some major risk looming overhead regarding potential future regulations or something that is scaring investors away (which I hear people worrying about sometimes regarding the Poconos, where one of the houses you linked was).

What IS still possible is finding a specific deal that will meet those metrics, or CREATING a deal that will meet those metrics (through value-add, etc). This is more in line with typical/traditional real estate investing that likely brought most of us to BP in the first place. In real estate, it's not as easy as just pulling up the MLS, clicking a random link, and getting an awesome property that cash flows amazingly. Deals are out there, they just have to be found. STR was an exception to that for a while when it was unknown and considered risky, but now that it's a legit asset class like LTR SFH or Multifamily etc and the secret is out, it's much more in line with traditional real estate where it's more about the deal than the market.

All imo, of course.