Best Market-Entry Strategy for Short-Term Rentals

[Patrick Zepeda]

I am wanting to start investing in STR acquiring or developing the real estate. I think Bend is a top place for STR as there is multi-seasonal demand and is a city with a lot of growth. Problem here is, apart from the zoning restrictions of STR, purchasing a property is extremely expensive. Day dreaming here, but purchasing land in the Deschutes River Woods / South Bend and developing a cabin with plenty of outdoor amenities would be - a dream. However, land costs are crazy, most lots are going for no less than $400k. So, my question here is, what has been the best way to enter the market? And does anybody have an idea of what the PSF development cost is?

Thank you!!!

[Collin Hays]

Quote from @Patrick Zepeda:

Quote from @Collin Hays:

Aside from the STR restriction situation mentioned by Michael, new construction is going to cost more than buying an existing property 98 percent of the time. Plus, you have the year of downtime while you build, foregoing all of the revenue for that time from a property that you could have purchased.

 That is correct. That is why Im looking at doing the whole deal cash only, since financing would bring high carry costs.

Yeah, even with cash, you'd be far better off ROI just buying existing. Not even close.