Multifamily or Short-term rentals for the end of 2022?

[Evelyn Pecho]

I am fairly new invertor, just looking into my second REI. After looking into many deals in the past 4 months I found that in my area ( NJ) its easier to invest in STR, just because there is not enough supply on multifamily properties. Given all the info/ data about the inevitable inflation coming our way, if not already here, and I concern about the STR investment.

The STR deals that I am looking into is near a very visited park/lake, where STR continues to grow, but I am afraid that this STR factor is too risky as it is very linked to the waves of the economy. Could anyone share their experiences on this type of STR?

Thank you in advance...

[Evelyn Pecho]

Quote from @Nate Monson:

@Evelyn Pecho I am sure there are members here on BP who can comment on your market down there as to what their take on STR are going to do.

If I'm doing my own thought experiment I can see how disposable income may be getting reduced due to inflation. However, I can imagine that some types of STR may be targeted toward a high income segment of the population. In my market a lot of our STRs are seasonal with the horse racing track bringing in significant dollars. There wasn't a significant reduction in the spending there this year. In Albany there are other STRs that are used for conferences with the state buildings and those are still going strong as well.

Good luck!

 Mauricio,

Thank you for the comment. Yeah, I thought about targeting this group too, but I am concern of the higher risk here. Anyway, I do always have an open mind, so I am not discarding this option. 

Thanks again.