6 month STR season

[Melissa Wongkamalasai]

I am looking purchasing my first STR in the Upper Peninsula of Michigan. There are areas that restrict rentals to 6 months out of the year. Would this turn any investors away?

[Travis Timmons]

We make 90% of our booking revenue in Maine from May to October. I'm sure you'll find the same in the UP. I'm fine with a low overall occupancy number if my gross revenue is where it needs to be. 

I like the seasonality. By the time I am sick of self management, the offseason comes and I get a break. The house also gets a much needed break as well. Trust your underwriting. If you can get the return you'd like with 6 months of rental, go for it. I don't love it, but if I could make a 20% cash on cash return (or the return of your liking), I'd pull the trigger.