Getting started in STR's. Where should I begin?

[Ryan Marble]

I would like to start investing in an Airbnb. I'm looking for a property that will cash flow, but also would like to invest somewhere that would be a nice annual vacation spot as a side perk. Any suggestions on where to look, books to read, podcasts to listen to, area's to focus on? Any guidance would be much appreciated!

[Travis Timmons]

My go to response, which has been posted a few times (sorry if you saw it elsewhere) is to lean into what you already know. Start there and work backwards. Figure out your unfair advantage. I'm also more of a rent your vacations, buy your investments guy. Don't buy it because you like going there. Buy what makes the most money.

Secondly, it's hard to get started. It is stressful, expensive, and you burn through a pile of cash before you make a dime. There's a lot of "this better work, I'm bleeding cash" feelings as you get started. Others may disagree, but I personally don't believe a short term rental is worth the hassle if you cannot get close to (or hopefully better than) a 20% cash on cash return. That's not possible in many markets right now. Or you have to take on a fixer to increase the home's value to get there. There is no turn key 20% cash on cash market out there that I am aware of. 

My advice after a couple of years is to maximize your bedroom count for your budget and don't invest in an STR that cannot do at least 50-60k of gross booking revenue. Unexpected expenses are not as bad if you have a $60-80-100k revenue base.

And I like seasonality if you are self managing. A busy season provides a serious cash infusion and by the time you get tired of self managing, the season is over and you get a break. The house also gets a much needed break.