Hot Cities/Counties to invest in for short-term rentals

[Duarte Silverio]

Hey guys, I'm rather new to BiggerPockets.

I've mainly invested for capital appreciation in the past and am looking to diversify. I'm currently researching European cities to invest in for short-term rentals, as to take advantage of the low Euro.

I've been mostly checking Portugal, mainly Lisbon, as the country is having a boom in tourism, and also cuz I speak the language. However from what I've seen, although there is a significant increase in demand, supply has also almost tripled in the last 2 years.

Any other recommendations to check out? What kind of ROI are you guys having in existing short-term rentals?

Duarte

[David Hays]

Duarte,

Sorry for the delay, I didn't get the notification of your response. Yes, we had a collection of tourist apartments in Seville, Spain, but there was some pending legislation that we foresaw being a problem and sold our business last year. Turned out to be quite the right decision, since the person who bought it is now out of business thanks to those regulations being ratified this past February. 

In regards to your question, to be honest, most of my work to-date has been with owners who are looking to operate their properties on their own; as I mentioned before, if you're looking to outsource the management, I suspect you'd be much better off simply going with LTR. With that being said, Spain is a great market to buy into right now, particularly along the Costa del Sol - a glut of supply and grossly-depressed prices make for some excellent long-term appreciation gain, as well as an established and well-entrenched demand of STR in the summer. We'll be focusing our investments here for the time being, and I would be very surprised not to double our money or more in equity within 8-10 years.