Best locations for STR/vacation rental

[Issac Harris]

I'm looking to purchase a STR but I'm having a hard time deciding on a location. Is it best to pick the location based on ROI, or is there other important factors that a newbie may overlook? I know some state and local governments have laws on STR and of course thats a important factor. I'm just curious as to what parameters other investors use when choosing location.

[Jon Crosby]

Hi @Isaac Owens, thanks for posting and the great question! For me below is a short list, but bear in mind that my specific STR investment model is 'vacation house for free'. My criteria are:

1. An area I want to enjoy with my family
2. No pending or or existing STR restrictions or legislation in process
3. Potential occupancy rates > 150 days per year 
4. Net cash flow between -5k to $5k per year
5. Family friendly destinations, non Bachelor party destinations 

I wrote a BP blog article also that touches on some of this as well that you might find interesting.  

https://www.biggerpockets.com/member-blogs/10042/64779-8-ways-to-effectively-hunt-for-your-vacation-house-4-free

Best of luck!