Guidance needed on first STR investment - location, identify deals etc.

[Sushree Mohanty]

Hi everyone - My husband and I reside in CA and looking to purchase our first STR.
Any tips/pros and cons on where to invest which will provide good cashflow? We will hire a property manager so that will be 20% commission. We qualify for $1M but not sure if it makes sense to invest that high for one STR. Our goal is to have multiple properties with positive cash flow over the next couple of years. 
thanks in advance!

[Manny Vasquez]

Hello Sushree! Welcome to the BP community! I have several STR rentals in California (I co-own STRental Pros in Orange County, Los Angeles County, and Riverside County). Before I decide to STR a property, I first pick the city in which I want to STR the property. I then check to see if there are any local laws that limit the number of STR rentals in the municipality. For example, the city of Palm Springs has a hard-limit on the number of STR rental permits it allows (and it has a huge "wait list"). Some cities don't allow STR's at all. If the city is ok with STR's, I then check to see what permits are required for STR operation. After doing this, I then run the property through Airdna.co and/or Mashvisor.com Both of these tools will give you projections of what type of rental rates, price per night, bookings, occupancy, seasonal variations, etc. I also open up Airbnb and/or VRBO so that I can cross-check the properties. The combination of these tools will give you a good idea on what you can expect. I also like to "borrow" ideas and look at what amenities are most popular in that area so that I can include those amenities at my property. Based on the above projections I receive, I then decide to move forward with the property or look elsewhere. I hope this helps and good luck!