Can STRs Work w/ Restrictions In North Nj / NY Self Managed Lake House or Cabins?

[Jonathan Vinas]

Hi BP community!

I’m looking for advice and firsthand insights on operating a self-managed short-term rental (STR) in North New Jersey, the Catskills, Hudson Valley, or Delaware Water Gap areas. My focus is on purchasing a single-family home to set up a lake house or cabin to own and self manage from my home in Bergen County, NJ. The goal is to create cash flow, do some value add work, and be able to take advantage of the STR loophole to help with my W2 income (hence the self managing).

I’ve been exploring towns like Beacon, Woodstock, Hudson, Newburgh, Lake Hopatcong, Highland Lakes, and others. However, I’ve encountered various restrictions that make it challenging to find a viable STR property, such as:

• - Requirements for owner occupancy or a property manager living within 30 minutes.
• - STR limits like no more than 100 rental days per year.
• - Rules prohibiting guests from using lakes for recreational activities.

I want to better understand if operating an STR in this region is feasible, particularly with these restrictions. Is it possible to navigate these regulations and make a lake house or cabin rental work?

I would appreciate tips from anyone who has experience making this model work in these areas or similar markets.

Looking forward to your advice and recommendations!