STR Near Major Airport. Good or Bad Idea?

[Nathan Schloff]

Hello!

I have discovered an apartment building for sale that is less than 10 minutes from a major airport in a relatively quiet neighborhood. I think the building would be a good deal as-is but there is a lot of uncertainty around a looming depression and I would like to get into more value-add buy and hold stuff, for obvious reasons.

I am wondering if anyone has experience in this arena? And are these type of STR's worth it? (thinking constant demand for people who have early flights or corporate housing for pilots). I am curious how CoVid will reshape the travel industry as a whole, I don't think people will ever stop flying, but how long will it be until we are back at healthy levels.

Being conservative and using a 40% vacancy rate, each apartment netting $50 a night, each converted apartment would net $900 a month. Market rent is $550 and that's what the building is currently valued on/a little under.

Everything on Airbnb is over $100 a night so I think these numbers are pretty conservative.

Somedays I think these numbers are way too conservative and other times it's like I could never get that! left-brain indecisiveness.

What are your thoughts! Is this a deal worth pursuing given the information provided?

Thank you for your time! Just trying to quit the rat race!

Nathan Schloff