All Forum Posts by: Allan Pan
Allan Pan has started 3 posts and replied 14 times.
Post: Seeking Advice: Achieving a 25% CoC Return on Long-Distance STR Investments
- Posts 14
- Votes 6
Quote from @Maxwell Ventura:
@Allan Pan I have a client that purchased a 1br/loft condo in little italy here in SD that he is using at STR and doing well, which would be closer to your price point.
You just have to be cognizant of the HOA CC&Rs, most of them have restrictions of 30 day minimum rentals.
@Maxwell Ventura Thank you Maxwell. Do you have the number for that STR? I am curious to see the upfront investment and the return.
Post: Seeking Advice: Achieving a 25% CoC Return on Long-Distance STR Investments
- Posts 14
- Votes 6
Quote from @Andrew Steffens:
I agree with Trent. I do not know every market in the US but typically speaking popular vacation areas which drive up rates also have high real estate values. If you go to a lower tier destination to find cheaper real estate you will find also get lower revenues.
I would advise to focus on the long term appreciation of the purchase instead of the cash flow!
Post: Seeking Advice: Achieving a 25% CoC Return on Long-Distance STR Investments
- Posts 14
- Votes 6
Quote from @Trent Reeve:
i think at that price point, and if you cant find an off-market deal, 25% is a hard target to hit. i think 10% might be more realistic.
Thank you Trent. It looks like the market is very different from two three years ago. Does the STR market reach a point of saturation?
Post: Seeking Advice: Achieving a 25% CoC Return on Long-Distance STR Investments
- Posts 14
- Votes 6
Hello BP community,
I'm new to investing and also new to BP. My interest in STRs was sparked by reading several posts here and the book "Short Term Rental, Long Term Wealth." I've also listened to a few episodes of the BP podcast about STRs. The way Avery Carl (the author) and the podcast guests describe it, managing an STR seems quite straightforward, though I'm aware it requires significant effort to be successful.
My plan is to purchase a property for under $400k, make a 10% down payment, and self-manage it as an STR.
Living in San Diego, and given the real estate prices in Southern California, finding a profitable STR locally seems challenging. Therefore, I'm exploring the idea of investing in a long-distance STR.
I'm aiming for a Cash on Cash return of 25%, but after researching a few markets, I'm finding it difficult to achieve this target. Is a 25% CoC return realistic? If not, what would be a more realistic CoC return expectation? Any market ideas or recommendations? Additionally, are there any markets that are particularly friendly for new investors? Thanks!