Set up and furnishings for STR

[Marissa Liesenfelt]

Hi all! When you are putting your numbers together for a new STR property, how do you look at the cost of initial furnishings, linens, etc? Do you just look at this as an acquisition cost like you would a downpayment? Do you have a formula for how quick you'd want to recoup those start-up costs? I can easily see spending $15K to furnish and trying to figure out how to factor this into the profitability picture for the investment and what's realistic. Looking at the numbers, I def. wouldn't make it back yr 1 on cashflow after expenses. Thanks for any POV you want to share!

[Michael Baum]

Hey @Marissa Liesenfelt! That is a pretty good question. I think it is really going to depend on the area and the expected profitability of the place.

For us, we spend about 9k to furnish out our 2400sqft 4/3 lake house. Most of the furniture is USA made used off Craigslist, OfferUP and Facebook marketplace. Mattresses, linens, towels, kitchen stuff (for the most part) were all new.

Now I will say I am a deal finder and am still finding great stuff to furnish a house. A lot of stuff for free!

I know we made back that expense in the second year. The first year of any new rental (with some exceptions) is pretty lean. You are building a rep and need those 5 star reviews.