Skip to content
×
Try PRO Free Today!
BiggerPockets Pro offers you a comprehensive suite of tools and resources
Market and Deal Finder Tools
Deal Analysis Calculators
Property Management Software
Exclusive discounts to Home Depot, RentRedi, and more
$0
7 days free
$828/yr or $69/mo when billed monthly.
$390/yr or $32.5/mo when billed annually.
7 days free. Cancel anytime.
Already a Pro Member? Sign in here

Join Over 3 Million Real Estate Investors

Create a free BiggerPockets account to comment, participate, and connect with over 3 million real estate investors.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
The community here is like my own little personal real estate army that I can depend upon to help me through ANY problems I come across.
Short-Term & Vacation Rental Discussions
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 3 years ago on . Most recent reply

User Stats

26
Posts
17
Votes
Joseph Goode
  • Sacramento, ca
17
Votes |
26
Posts

Are there Good STR markets in the Midwest/

Joseph Goode
  • Sacramento, ca
Posted

I know that the big players in the STR market have been the Smokey's, parts of Florida and Joshua Tree but it seems like the price point are high and the bidding competition is crazy. Can you guys recommend some great STR cities at a lower price point in the Midwest, south or really anywhere that works.

Most Popular Reply

User Stats

9,999
Posts
18,560
Votes
Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
18,560
Votes |
9,999
Posts
Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
ModeratorReplied

@Joseph Goode I operate a STR in the mid west, but there are two things you need to understand:

1. STR will do better in highly traveled vacation destinations. Warm weather, ocean and mountains are your top attractions. The other draw may be major urban areas that see high tourism like San Francisco or San Diego. Not that Omaha isn't a nice city, but you will get nowhere near the number of year-round tourists or gross revenue as you would in a vacation destination.

2. Price point of the property is irrelevant. I purchased my STR for $130,000 and I can gross $2500 in a good month. You could buy a place in the mountains for $600,000 and may gross $9000 a month. You may think, I will just buy 4X properties like Joe has and spend $450K to get $10K revenue. Now you have 4X the number of guests and 4X utility bills, cleaning, etc. The higher dollar vacation rentals will get more "bang for you buck" and will appreciate better than cheap houses in the mid west.

Like I said, I own a cheap house that is a STR in the mid west. If I lived in Sacramento, CA, there is no way I would buy a place in the mid west for a vacation rental. I may consider houses in the mid west for long term rental, but short term rental is too much work for the return on low dollar properties.

The reason properties cost more in some markets is because they are in more desirable locations. 

  • Joe Splitrock
  • Loading replies...