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Updated over 4 years ago on . Most recent reply

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Roy H.
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Is it "wrong" to invest in an STR as your first property?

Roy H.
Posted

So I've been doing tons of reading on this forum, listening to podcasts, reading articles, and running sample numbers on random homes for practice to get ready for my first STR.

But the more I read into it, the more old-fashioned advice there is for going with an LTR.

Am I making a mistake for investing in an STR as my first home? Would you advise against this? Would there be issues with lenders/the bank?

Honestly the idea of LTR just doesn't appeal to me- I mean all that work for $200/door per month? I can do Uber and make that in a day.

Yeah, there's the whole equity, appreciation, etc. but I'm much more interested in getting paid today than tomorrow so I can reinvest it faster.

Yes, STRs are more work. But they're also more profitable. STRs always outperform LTRs in terms of cash flow (if you're doing it right).

So is there any reason to re-evaluate my whole plan and consider an LTR? I'm interested in sustainability right now and having a monthly cash flow that I can use to expand.

Am I doing it wrong? Or am I just having second thoughts?

Most Popular Reply

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Avery Carl
  • Real Estate Agent
  • USA
1,612
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909
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Avery Carl
  • Real Estate Agent
  • USA
Replied

@Roy H. it's definitely not wrong. I invested in STR's first and then used the cash flow to scale my portfolio into a mix of LTR's and STR's. My big question is WHERE are you interested in investing in an STR? There are many short term markets that are decades old where you don't have to worry about the regulations and volatility of metro markets. The market you choose will determine just how risky of an investment it is!

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