Is any str profitable now with 25 percent down?

[Tobias Joneses]

I'm looking at the numbers and with interest rates seeking 6.5. Housing prices the way they are and cleaning fees can anyone make money on str in long beach if they get in the game now?

[James Carlson]

@Tobias Joneses

I don't know the Long Beach market, but here in Colorado, another high-priced area, you can still do well with short-term rentals, but ... it's harder than it used to be.

My STR investor clients that succeed are doing a few things. They're all obvious and simple, but do require work. And they all fall under the category of "bring your A game."

Buy unique. If possible, buy something different. An A-frame, a treehouse, a home with views, etc. ... they all kill on Airbnb. Or create something unique ... a game room, a killer outdoor space, a wall-papered wall, etc. 

Great amenities. Install a sauna or a game room. Hot tubs are great. A hot tub is shown to increase STR revenues by 30% or so. Go above and beyond. I had a client in the mountains outside of Colorado Springs buy a star-gazing dome for his vacation rental. 

Hire a designer. You can't thrift-store-buy your way to profitability. You've got to stand out and a professionally designed space is an easy way to do it. Clients who bought just outside of Denver hired a designer, and their ADR is outperforming their competition by around 20%.

Don't skimp on photos. If you pay half a million to $1M for a home, another $30k for furnishings and then shoot photos on your iPhone, you should be banned from investing ever again. Hire. A. Professional. And maybe do multiple sets of photos? Full sun and sunset, for example?

Not saying it's a sure bet if you do the above. But it definitely puts you ahead of the game. Good luck!