Anyone willing to give me a reality check in either direction? STR first timer.

[Kayla Prange]

Hello! New to STR and new to BiggerPockets. I am a full time real estate agent and have just reached the point where I can start investing myself. I found a place in a vacation area (2.5 hours away from me by car) that really caught my attention in a whimsical sense - meaning it has that sort of special exterior look to it that you might expect or seek out for a rental in this area. I did make a lowball offer that was refused so now have to decide if I want to try again.

A few things -

The area is pretty saturated with STRs and there are newly set regulations in place. 

The home is currently on AirBnB with good reviews but the place needs an overhaul. I am huge proponent of the hospitality and design aspect by making the property itself an experience with as many amenities and comforts as possible. My goal would be to cosmetically renovate the property, professional photos, interior design, social media presence, etc. In my research this would certainly warrant charging more per night and make it stand out but there is still so much competition I am unsure if the CoC is there.

I would be looking to self manage by finding a team in the area for cleaning, repairs, etc. 

The property is quite small, which to me is not a con necessarily as I don't want a huge place to manage nor do I want to draw large groups. But am I wrong on this part?

Any advice here for a newcomer? Reality checks welcome as I do tend to romanticize projects. 

[JD Martin]

Quote from @Kayla Prange:

Hello! New to STR and new to BiggerPockets. I am a full time real estate agent and have just reached the point where I can start investing myself. I found a place in a vacation area (2.5 hours away from me by car) that really caught my attention in a whimsical sense - meaning it has that sort of special exterior look to it that you might expect or seek out for a rental in this area. I did make a lowball offer that was refused so now have to decide if I want to try again.

A few things -

The area is pretty saturated with STRs and there are newly set regulations in place. 

The home is currently on AirBnB with good reviews but the place needs an overhaul. I am huge proponent of the hospitality and design aspect by making the property itself an experience with as many amenities and comforts as possible. My goal would be to cosmetically renovate the property, professional photos, interior design, social media presence, etc. In my research this would certainly warrant charging more per night and make it stand out but there is still so much competition I am unsure if the CoC is there.

I would be looking to self manage by finding a team in the area for cleaning, repairs, etc. 

The property is quite small, which to me is not a con necessarily as I don't want a huge place to manage nor do I want to draw large groups. But am I wrong on this part?

Any advice here for a newcomer? Reality checks welcome as I do tend to romanticize projects. 

The bottom line is the bottom line: can you make any money with this property? As someone who has both long and short term rentals STRs are a ton of work comparatively speaking, and you can drop a ton of money on a STR. You really need to explore your expected return on the property before you do anything else.