Vacation Rental Drawbacks

[Gordon Michael Porter]

I’m really interested in buying properties for the sole purpose of listing on AirBnB. The area I’m in is busting at the seams with vacationers and it looks like AirBnB is the best way to go. What are the drawbacks I am missing?

[Avery Carl]

Hey Gordon! One of the best places to invest in STR's is just down the road from you in Panama City Beach. It's a true vacation rental market and has been for decades (as are the other towns in the panhandle such as Destin, also a good spot to invest in STR's but more expensive), so the cities figured out how to tax/monetize the short term rentals decades ago. The benefit of investing in a true vacation rental market is that the city depends on tourism and the revenue from STR's, so you don't have to worry (as much) about future STR regulations as major metropolitan areas.

It's not as passive as LTR investing, but the cash-flow is undeniable. My STR's allowed me to scale my LTR portfolio much quicker than I would have been able to otherwise. Hope that helps!