Looking for advice in scaling STR business - Got one running in Hyattsville, MD

[Priscilla Shu]

In March I rented and furnished a 4 bedroom home in Hyattsville, MD for STR and it's doing well so far with 21 nights booked since listing on March 18. I'm looking to basically rinse and repeat. But I don't have the bandwidth to keep furnishing these properties and I also want to make sure I'm not moving too fast. Any experience in the DMV market or just with scaling in general? I have the option to go into other markets such as Pensacola, FL and Phoenix, AZ with already furnished rental arbitrage. Just need to hear someone say it's ok keep going, it's worth the risk (if it is) :)

[Russell Brazil]

Quote from @Priscilla Shu:

In March I rented and furnished a 4 bedroom home in Hyattsville, MD for STR and it's doing well so far with 21 nights booked since listing on March 18. I'm looking to basically rinse and repeat. But I don't have the bandwidth to keep furnishing these properties and I also want to make sure I'm not moving too fast. Any experience in the DMV market or just with scaling in general? I have the option to go into other markets such as Pensacola, FL and Phoenix, AZ with already furnished rental arbitrage. Just need to hear someone say it's ok keep going, it's worth the risk (if it is) :)

When you say rented.....you are not the owner of the property? Short term rentals are only available to owners in PG County. How did you get the STR license if you don't own the property?

What do you plan to do when you hit the cap on days rented?

[Andrew Steffens]

Be very careful with arbitraging...you can search the term on the forums here for reasons why.

[Ozzy Sirimsi]

Quote from @Russell Brazil:

Quote from @Priscilla Shu:

In March I rented and furnished a 4 bedroom home in Hyattsville, MD for STR and it's doing well so far with 21 nights booked since listing on March 18. I'm looking to basically rinse and repeat. But I don't have the bandwidth to keep furnishing these properties and I also want to make sure I'm not moving too fast. Any experience in the DMV market or just with scaling in general? I have the option to go into other markets such as Pensacola, FL and Phoenix, AZ with already furnished rental arbitrage. Just need to hear someone say it's ok keep going, it's worth the risk (if it is) :)

When you say rented.....you are not the owner of the property? Short term rentals are only available to owners in PG County. How did you get the STR license if you don't own the property?

What do you plan to do when you hit the cap on days rented?

 I think many investors are going around that rule in Baltimore City, so I assume they are doing it in other counties.

[Jack Seiden]

Quote from @Ozzy Sirimsi:

Quote from @Russell Brazil:

Quote from @Priscilla Shu:

In March I rented and furnished a 4 bedroom home in Hyattsville, MD for STR and it's doing well so far with 21 nights booked since listing on March 18. I'm looking to basically rinse and repeat. But I don't have the bandwidth to keep furnishing these properties and I also want to make sure I'm not moving too fast. Any experience in the DMV market or just with scaling in general? I have the option to go into other markets such as Pensacola, FL and Phoenix, AZ with already furnished rental arbitrage. Just need to hear someone say it's ok keep going, it's worth the risk (if it is) :)

When you say rented.....you are not the owner of the property? Short term rentals are only available to owners in PG County. How did you get the STR license if you don't own the property?

What do you plan to do when you hit the cap on days rented?

 I think many investors are going around that rule in Baltimore City, so I assume they are doing it in other counties.

Not trying to pick on you as you are 110% correct and understand you are just reporting the facts on the ground, just I think the logic about this, about “off market” deals is kind of off, like there are plenty of ways to make money skirting the rules, taking advantage of old people etc, and there are more profitable ways than real estate to do that, at that point your not really a real estate investor, your just someone making money not playing by the rules of your competition and taking advantage of people, which to me shouldn’t be considered “a real estate strategy”

[Ned Carey]

@Priscilla Shu it is OK to keep going if you are doing it in a legal way AND you have appropriate reseves to fund you past problems. 

Depsite what you hear real estate is very risky and STR arbitrage is even more so.

[Jena Vail]

Priscilla, sounds like great success on your first STR! Use AirDNA to help determine your next area & pick a city that is STR friendly. What do you think the #1 factor was in your solid bookings?

[Priscilla Shu]

RE: Russell Brazil You may be assuming that I'm doing this without cooperation from the owner. After the owner paid for the license application, I worked with the county to get the STR license approved under the owner's name with me as the manager. It was an easy process. I plan to switch to midterm renting after that.

Thanks for the response.
 

[Priscilla Shu]

Quote from @Ned Carey:

@Priscilla Shu it is OK to keep going if you are doing it in a legal way AND you have appropriate reseves to fund you past problems. 

Depsite what you hear real estate is very risky and STR arbitrage is even more so.

100% legal always. It's not worth it to me if it's not. Yes, indeed. I've made and lost money investing in multi-unit properties, developments and partnerships. But it's my passion and I've made far more than I've lost. Thanks for the advice. 

[Priscilla Shu]

Quote from @Jena Vail:

Priscilla, sounds like great success on your first STR! Use AirDNA to help determine your next area & pick a city that is STR friendly. What do you think the #1 factor was in your solid bookings?

Thank you so much. I'm looking for more STR friendly cities. It's so hard to find. Please let me know if you know of any. I think what helped is offering what others don't; space for families, ample beds (but not crowding), nice outdoor space.

[Collin H.]

I thought bandwidth had something to do with the internet, rinse and repeat had something to do with dishes, and scale had something to do with fish.  

I must be getting old!