What to look for in a long-term vs. short-term rental property?

[Joe White]

Hi everyone, I'm super new to all of this and to BiggerPockets. My partner and I are very interested in purchasing a property to be a short-term, vacation rental. Question is, do you still look for the most amazing deal on a fixer-upper, or is it better to look for something that doesn't require a lot of rehab and pay closer to market value for it (since, you're assuming much higher cashflow from it)?

[Michael Baum]

Hey @Joe White, it's pretty much no different than anything else. Location, location, location. A super nice place where no one goes isn't as good as a fixer in the middle of Pigeon Forge.

It will all depending on your circumstances. Can you afford to buy a place, rehab then rent if it takes 8 months? If so then you get the appreciation of the rehab plus a new place ready to go. If not, then you need to look for something done.

Plus you have to figure in outfitting the place with everything needed. It is possible to find a nice place done that includes everything you need for less than starting over.

It all depends on your situation.