New to STR- How is the market in 2024
Member since 2024 · 15 posts · 11 votes
New to STR- How is the market in 2024
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Ryan MoyerBusiness Member
Property Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votesQuote from @Annie Seurer:
I personally like Kissimmee because it can be very lucrative but it can be a difficult market - you'd have to knock the design and amenities out of the park, because if you don't, there are thousands of rentals that do and you'll fall to the wayside. In my experience, we found 5-8 bedrooms to perform the best.
This is accurate. Disney area is not really a cash-flow market right now unless you invest a good amount of money into theming AND you knock it out of the park with that spend.
They've been building these large themed houses by the literal thousands the last few years and there are a lot of them. Just go to Airbnb and search for a place to stay and you will see how decked out all the homes are and how many are available and hence, how startlingly low some of the rates are for such nice houses.
It can be done but if cash flow is a top priority it would not be my top choice right now. Though if personal use or long term safety are a concern it can make a lot of sense as Disney will always be a market (whereas places like Broken Bow I could see fading from popularity) and unlike many markets there is almost no regulation risk since these properties are built in tourist zones specifically for STR.
I own there and manage others so have real world revenue data if you want specifics.
Cosmic Vacations4.9172 Reviews
31 Replies
- Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes2y
Quote from @Kanika Jain:
We are from California and looking for investing in STR for tax purposes and good cash flow. California is an expensive market. We are looking for homes priced around 500k (including renovations) and revenue 50-60k per year. I am willing to invest in renovating the place to reach profitability.
What I am looking for:
- Decent margin of safety as opposed to highest yield possible.
- Low operational cost
- Good seasonality markets
- Should be easier to operationalize service via property managers remotely.
What are some of the strategies that have worked? For e.g.- Jumping into up and coming market vs renovating in a saturated market?
We are currently looking into Kissimmee and Fort Myers to start with. Any recommendations of good markets outside of Florida would be great to learn.
Thanks.
@Kanika Jain, you will have plenty of options in Kissimmee and Davenport, the Disney markets. Seasonality is not an issue as this is a year-round market. The key, especially in the $500k price range where you have lots of competition, is setting the home apart to make it unique. Theming is super important, and also identifying the right resorts where you can find buying opportunities. We have seen quite a bit of interest in the older resorts, closer to Disney where you can add current theming and create a real gem which will book well. Next year, the opening of Universal’s Epic Universe is also creating new excitement and new opportunities. Happy to chat and brainstorm the possibilities!
- Investor · West Palm Beach, FL · Member since 2024 · 90 posts · 47 votes2y
I personally like Kissimmee because it can be very lucrative but it can be a difficult market - you'd have to knock the design and amenities out of the park, because if you don't, there are thousands of rentals that do and you'll fall to the wayside. In my experience, we found 5-8 bedrooms to perform the best.
I'd personally choose the Tampa/Clearwater/St. Petersburg area over Ft. Myers.
North Carolina is growing and a great state to invest. I'd look into Raleigh and Asheville (and surrounding towns - I personally love Boone and Bryson City). Everyone will have their own opinion on this but you ultimately need to choose what you are most comfortable with. Are there states/cities you like to vacation to? Start there.
How you build out your STR will provide the most margin of safety in the majority of markets. If you have any questions regarding design, renovation, or guest experience - feel free to reach out.
- 2yJohn UnderwoodPro MemberInvestor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
I have heard multiple times that the Disney area is very saturated.
Florida insurance rates are through the roof so that that into account.
You might want to consider the Myrtle Beach area which is very popular for tourists.
- Investor · West Palm Beach, FL · Member since 2024 · 90 posts · 47 votes2y
Quote from @John Underwood:
I have heard multiple times that the Disney area is very saturated.
Florida insurance rates are through the roof so that that into account.
You might want to consider the Myrtle Beach area which is very popular for tourists.
+2 Myrtle Beach
- 2yRyan MoyerBusiness MemberProperty Manager · Orlando Kissimmee Davenport Salt Lake City, Park City · Member since 2019 · 993 posts · 1k+ votes
Quote from @Annie Seurer:
I personally like Kissimmee because it can be very lucrative but it can be a difficult market - you'd have to knock the design and amenities out of the park, because if you don't, there are thousands of rentals that do and you'll fall to the wayside. In my experience, we found 5-8 bedrooms to perform the best.
This is accurate. Disney area is not really a cash-flow market right now unless you invest a good amount of money into theming AND you knock it out of the park with that spend.
They've been building these large themed houses by the literal thousands the last few years and there are a lot of them. Just go to Airbnb and search for a place to stay and you will see how decked out all the homes are and how many are available and hence, how startlingly low some of the rates are for such nice houses.
It can be done but if cash flow is a top priority it would not be my top choice right now. Though if personal use or long term safety are a concern it can make a lot of sense as Disney will always be a market (whereas places like Broken Bow I could see fading from popularity) and unlike many markets there is almost no regulation risk since these properties are built in tourist zones specifically for STR.
I own there and manage others so have real world revenue data if you want specifics.
Cosmic Vacations4.9172 Reviews - 2yAndrew SteffensBusiness MemberTampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
I would avoid Disney area right now as it is very difficult, especially in that price range.
The Tampa area 100% can deliver those returns. I have some properties on my list in the $400's projecting $65k.
If you stay out of a flood zone you will be fine on insurance
Vacation Rentals of Florida53 Reviews - Member since 2024 · 15 posts · 11 votes2y
Quote from @John Underwood:
I have heard multiple times that the Disney area is very saturated.
Florida insurance rates are through the roof so that that into account.
You might want to consider the Myrtle Beach area which is very popular for tourists.
AirDNA shows Martyl beach as bad market. Not sure how it’s safe to invest there.What are the criteria you look for to filter out bad data while searching on airDNA?
- Member since 2024 · 15 posts · 11 votes2y
Quote from @Ryan Moyer:
Quote from @Annie Seurer:
I personally like Kissimmee because it can be very lucrative but it can be a difficult market - you'd have to knock the design and amenities out of the park, because if you don't, there are thousands of rentals that do and you'll fall to the wayside. In my experience, we found 5-8 bedrooms to perform the best.
This is accurate. Disney area is not really a cash-flow market right now unless you invest a good amount of money into theming AND you knock it out of the park with that spend.
They've been building these large themed houses by the literal thousands the last few years and there are a lot of them. Just go to Airbnb and search for a place to stay and you will see how decked out all the homes are and how many are available and hence, how startlingly low some of the rates are for such nice houses.
It can be done but if cash flow is a top priority it would not be my top choice right now. Though if personal use or long term safety are a concern it can make a lot of sense as Disney will always be a market (whereas places like Broken Bow I could see fading from popularity) and unlike many markets there is almost no regulation risk since these properties are built in tourist zones specifically for STR.
I own there and manage others so have real world revenue data if you want specifics.
DMed you.
- Member since 2024 · 15 posts · 11 votes2yCan you suggest some good local real-estate agents that I can reach out?
Quote from @Ryan Moyer:
Quote from @Annie Seurer:
I personally like Kissimmee because it can be very lucrative but it can be a difficult market - you'd have to knock the design and amenities out of the park, because if you don't, there are thousands of rentals that do and you'll fall to the wayside. In my experience, we found 5-8 bedrooms to perform the best.
This is accurate. Disney area is not really a cash-flow market right now unless you invest a good amount of money into theming AND you knock it out of the park with that spend.
They've been building these large themed houses by the literal thousands the last few years and there are a lot of them. Just go to Airbnb and search for a place to stay and you will see how decked out all the homes are and how many are available and hence, how startlingly low some of the rates are for such nice houses.
It can be done but if cash flow is a top priority it would not be my top choice right now. Though if personal use or long term safety are a concern it can make a lot of sense as Disney will always be a market (whereas places like Broken Bow I could see fading from popularity) and unlike many markets there is almost no regulation risk since these properties are built in tourist zones specifically for STR.
I own there and manage others so have real world revenue data if you want specifics.
- Member since 2024 · 15 posts · 11 votes2yHi Alice
Quote from @Alice Horn:
Quote from @Kanika Jain:
We are from California and looking for investing in STR for tax purposes and good cash flow. California is an expensive market. We are looking for homes priced around 500k (including renovations) and revenue 50-60k per year. I am willing to invest in renovating the place to reach profitability.
What I am looking for:
- Decent margin of safety as opposed to highest yield possible.
- Low operational cost
- Good seasonality markets
- Should be easier to operationalize service via property managers remotely.
What are some of the strategies that have worked? For e.g.- Jumping into up and coming market vs renovating in a saturated market?
We are currently looking into Kissimmee and Fort Myers to start with. Any recommendations of good markets outside of Florida would be great to learn.
Thanks.
@Kanika Jain, you will have plenty of options in Kissimmee and Davenport, the Disney markets. Seasonality is not an issue as this is a year-round market. The key, especially in the $500k price range where you have lots of competition, is setting the home apart to make it unique. Theming is super important, and also identifying the right resorts where you can find buying opportunities. We have seen quite a bit of interest in the older resorts, closer to Disney where you can add current theming and create a real gem which will book well. Next year, the opening of Universal’s Epic Universe is also creating new excitement and new opportunities. Happy to chat and brainstorm the possibilities!
Can you suggest some good local real-estate agents that I can reach out? - Investor · KY · Member since 2022 · 204 posts · 77 votes2y
Hello Kanika! I invest in STR in Kentucky and there are a ton of amazing areas here. The Red River Gorge (Natural Bridge State Park) area is fantastic. Average cabin cost around 300-400k. Gross revenue at those costs is 60-70k/year gross. I have a cabin right now in fact im seeking an equity partner on. The one thing about this market is its best to buy land and build new, there is not alot of on market inventory. Kenny Bidwell of STR Insights lableled Slade KY as one of the top mountain markets to invest in, Slade is the central town of the Red River Gorge. I would be happy to discuss this anytime!
- Property Manager · Kissimmee, FL · Member since 2019 · 446 posts · 266 votes2y
Absolutely! I’ll DM you now!
- 2yBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 715 votes
There are good STR possibilities in the south Reno, NV area. The proximity to lake Tahoe and Ski areas combined with tech companies like Tesla in the area there is a stream of people that come to the area. Nevada has the 4th lowest property taxes and reasonable insurance rates. As with any market there is an initial investment up front to make the property unique.
- Investor · West Palm Beach, FL · Member since 2024 · 90 posts · 47 votes2y
Quote from @Kanika Jain:
Hi Alice
Can you suggest some good local real-estate agents that I can reach out?Hey Kanika! I have an outstanding realtor I've worked with in Orlando to purchase STRs. Feel free to message me and I can share contact info.
- Real Estate Agent · Denver, CO · Member since 2022 · 20 posts · 18 votes2y
Hi Kanika! I'm from California but now live and invest in the Denver metro, Colorado area! I think that what you're looking for is extremely achievable here, at a minimum. For example my fiancee and I have invested into 2 $500k - $550k short term rentals here, one of which is now a MTR, and they make a combined total of about $180k annually.
STR's make up less than 5% of residential homes in Colorado so you will not find that it is as saturated as other ares like Tennessee or Florida for example.
- 2yShawn McCormickPro MemberRealtor · Central Florida-Orlando · Member since 2014 · 1k+ posts · 892 votesHi @Kanika Jain I would be happy to have a call with you. I work heavily in the STR market here in Orlando. We can schedule a call if you like. I have a link in my profile.
Quote from @Kanika Jain:
Can you suggest some good local real-estate agents that I can reach out?Quote from @Ryan Moyer:
Quote from @Annie Seurer:
I personally like Kissimmee because it can be very lucrative but it can be a difficult market - you'd have to knock the design and amenities out of the park, because if you don't, there are thousands of rentals that do and you'll fall to the wayside. In my experience, we found 5-8 bedrooms to perform the best.
This is accurate. Disney area is not really a cash-flow market right now unless you invest a good amount of money into theming AND you knock it out of the park with that spend.
They've been building these large themed houses by the literal thousands the last few years and there are a lot of them. Just go to Airbnb and search for a place to stay and you will see how decked out all the homes are and how many are available and hence, how startlingly low some of the rates are for such nice houses.
It can be done but if cash flow is a top priority it would not be my top choice right now. Though if personal use or long term safety are a concern it can make a lot of sense as Disney will always be a market (whereas places like Broken Bow I could see fading from popularity) and unlike many markets there is almost no regulation risk since these properties are built in tourist zones specifically for STR.
I own there and manage others so have real world revenue data if you want specifics.
Best of luck! - New to Real Estate · Canton, GA · Member since 2020 · 29 posts · 16 votes2y
We purchased in Gulf Shores, Alabama last year. It’s been doing excellent and we are very happy with the investment.
- Member since 2024 · 15 posts · 11 votes2y
Quote from @Shawn McCormick:
Hi @Kanika Jain I would be happy to have a call with you. I work heavily in the STR market here in Orlando. We can schedule a call if you like. I have a link in my profile.Quote from @Kanika Jain:
Can you suggest some good local real-estate agents that I can reach out?Quote from @Ryan Moyer:
Quote from @Annie Seurer:
I personally like Kissimmee because it can be very lucrative but it can be a difficult market - you'd have to knock the design and amenities out of the park, because if you don't, there are thousands of rentals that do and you'll fall to the wayside. In my experience, we found 5-8 bedrooms to perform the best.
This is accurate. Disney area is not really a cash-flow market right now unless you invest a good amount of money into theming AND you knock it out of the park with that spend.
They've been building these large themed houses by the literal thousands the last few years and there are a lot of them. Just go to Airbnb and search for a place to stay and you will see how decked out all the homes are and how many are available and hence, how startlingly low some of the rates are for such nice houses.
It can be done but if cash flow is a top priority it would not be my top choice right now. Though if personal use or long term safety are a concern it can make a lot of sense as Disney will always be a market (whereas places like Broken Bow I could see fading from popularity) and unlike many markets there is almost no regulation risk since these properties are built in tourist zones specifically for STR.
I own there and manage others so have real world revenue data if you want specifics.
Best of luck!can you dm me? I tried using the link in your profile but didnt work.
- 2yBradley BuxtonBusiness MemberReal Estate Agent · NV · Member since 2023 · 1k+ posts · 715 votesIn South Reno or Carson city purchase price 250K-800k. The gross revenue will range 20K-100K+ There are a few different neighborhoods and asset types that can be used for STR and MTR in the area. I'd need to know your situation and goals to dial in some numbers. I'd be happy to link and show you various scenarios.
Quote from @Brian G.:
@Bradley Buxton what type of annual gross revenue to purchase price ratio can be achieved on south Reno? Can you give me an example with $$$’s? Thanks
- 2yMyrtle Mike ThompsonBusiness MemberRealtor · Myrtle Beach, SC · Member since 2016 · 352 posts · 204 votes
@Kanika Jain I echo the sentiment that Myrtle Beach (and North Myrtle Beach) are worth considering. You can find 3-bedroom oceanfront condos for $450-$500k that will gross up to $75k per year if nicely appointed and well-managed. The HOA fees are often $1000+ per month, but if that covers all utilities and insurance (common with many buildings) these can still pencil out. Another option is a 3/2 single-family home within walking distance of the beach. Inventory on these is very tight, but you can find them under $500k. They may need a little bit of rehab and staging but can gross the $50-$60k per year you're looking for (and with little or no HOA fees). There are 3 on the market right now that I like in the $430-$450k range, and 2 of them have access to a community pool. Feel free to reach out if you'd like more info or if I can help with any questions.
Myrtle Mike Real Estate580 Reviews Anywhere that's publicized on this thread is likely not the best venture because attraction has been there. I am not saying it cannot be successful, I'm saying you're not the only one's these agents are pushing on.
I'd target true destination spots, without a hotel presence, and be ready to weather the storm with the volatility of STR. Understand it's a business not a RE pursuit meaning make sure the experience is #1 for the customer. In regards to risk, it's all debt here. I might be the only that thinks this way on this, but I keep my STRs with zero to very little leverage. I don't lose any sleep at night knowing occupancy has taken a fall this year. Most STRs that underwrite will likely give an aggressive look plus you're levered so it's just bad from the get.
- 2yMichael BaumPro MemberOlympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
AirDNA says Myrtle Beach is a bad area for STRs? That doesn't seem correct...
- San Diego, CA · Member since 2020 · 9 posts · 3 votes2y
Quote from @Waylon Smith:
We purchased in Gulf Shores, Alabama last year. It’s been doing excellent and we are very happy with the investment.
Hey Waylon,
I've also been looking in that area at STRs. Mind sharing the kind of returns you are seeing- feel free to send me a message if thats easier - Member since 2024 · 15 posts · 11 votes2y
How about Fort Worth TX, is it saturated? Anyone invested there recently and how is the performance?
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