STR rule of thumb for the cost of the home

[Jennifer Schultz]

HI All~

We currently own 2 vacation rentals about 45 minutes from us. I self manage both. We are starting the process of looking into other states down south to purchase a STR and to use ourselves in the winter. As I'm crunching the numbers I'm curious if anyone has a "rule" such as, for every $100 k in house you want to net $10 k/year.

I've been trying to create one but only really knowing the numbers on one location I'm floundering.   It would make comparing return on different locations easier... for me.  :)

Thanks!

[Paul Sandhu]

@Jennifer Schultz When I started doing these STRs my main competition was motels.  When I had a decision to make I asked myself "What would that motel do?".  I would do the opposite.  That was 8 years ago.  One of the motel owners sold it and moved away.  Another one has been closed for 3 years and they sold the contents.