A possible first STR property?

[Tomoko Hale]

I have been looking for an STR property and may have found one at a distance. The property is located in a mid-size city with several attractions nearby.

I understand that management fees can vary by location, but this property management company charges 20%. That seems high—does it? Based on my research, this PM company is highly reputable and provides excellent service. My local realtor obtained information from the PM about the property’s income for 2024, along with an estimate of monthly expenses the owner is responsible for. The PM handles almost everything except the decision-making.

Would it be rude or inappropriate if I communicated directly with the PM without involving my realtor?

The house is listed at $350K, including all the furniture. The owner wants to sell for a 1031 exchange, and the property hasn’t been officially listed yet. The location is great, and MTR could also be an option. Resale homes in the area have been selling for about $260/sq. ft., but this property is priced at $296.10/sq. ft. The house is 1,500 sq. ft. in size. How much would you counter if you were in my position? How much income would you at least if you purchase this property?

This will be my first time purchasing an STR, and I have no prior experience. I'm feeling both scared and excited about taking on this challenge.

I’d love to hear about your experiences and any advice you can share.

Thank you in advance!