New BP member looking for STR budget feedback!

[Chris Lu]

Hi all,

I am new to the BP community and would like feedback / pointers on how to learn more about potentially getting an out of state winter home / STR investment property in Jacksonville Beach, Florida.

I built this budget template based on my research but am only seeing bad investment returns / don't really know what I'm doing and would appreciate any feedback you all have to offer. Thanks!

[Jake Baker]

@Chris Lu

Welcome to the BP community! I invest primarily in Jacksonville, including Jax Beach. Here are some of my takeaways from your budget:

Operating Costs: Your STR management fee of 20% is high. While it's not uncommon for full-service managers, you might find lower rates (~10-15%) or alternative solutions like co-hosting services, especially if you handle bookings, rate adjustments, or guest communication yourself. This could improve your margins.

Occupancy Rate: A 60% occupancy rate seems low for Jax Beach, but that is a reasonable conservative baseline. 

Cash Flow: The numbers currently show a negative annual cash flow -$21,242. I personally wouldn't invest in a property that doesn't cash flow.

What is your financing strategy? Are you using the BRRRR method or buying turnkey?