Buying our first short term rental property

[Jon Luft]

Hi everyone! My fiancé and I are looking to buy our first short term rental property. What does everyone think is the most profitable area to purchase in? We are willing to spend up to 500,000. Any tips and information is greatly appreciated thank you! 

[Jeff Roth]

Hi Jon from Boyertown, PA-

You and your fiancé are interested in buying your first short-term rental and wonder profitable areas to purchase with a budget up to $500,000.

I would look at places along the west coast of Michigan, Grand Rapids, Kalamazoo, and near Ann Arbor, MI.

It is important to understand the local STR regulations in each community and partner with a property management company that can help your navigate that and manage it well for an excellent guest experience.

Don't forget to look into bonus depreciation and doing a cost segregation study to increase the tax benefits of ownership and if you "materially participate" in the management of the property per IRS guidelines it can offset active W-2 income which most real estate cannot.

To Your Success!