Buying STR with 5 star reviews

[Kim Robinson]

I'm interested in your experience if you have purchased an existing STR that has numerous 5 star reviews, super host status, and higher rates and occupancy than other houses in the neighborhood? I don't feel like I can use existing occupancy and rental rates for this house as a comparison for ROI since as the new owner I will be newly starting out with the house and may have to work up to the rental rates they are currently charging. Curious if others have done this and how long it took to build up success. Thanks!

[Ken Boone]

Originally posted by @Brent Huling:

I would be more concerned with why someone is selling if it is successful. Do your due diligence. If a neighbor is a pain in the butt and is calling in complaints, that is really bad. I bought some furniture off a guy who had a great STR a mile away, but had to sell because the neighbor would call in complaints the second a new renter checked in. Got fined a few times and lost his license, so he sold. Hopefully they are just burned out or taking profits and moving on. But if it because of violations, unhappy neighbors, etc., be careful.

That is a good point however I would not be terribly concerned with the why they are selling factor - most folks that are selling in hot markets are simply taking home their increased equity over the last 2 years or doing a 1031.