All Forum Posts by: Derek Fike

Hey Everyone,

I know that there has been quite a bit of conflict as to whether an STR can be profitable or not, so I figured that coming to this community for perspective would be best. I keep hearing that STRs are dead and that Airbnb/Vrbo will be a bust, but I can't help but think that there are other factors that are somewhat contributing to this thought, such as people getting into the STR game not know what they are doing, defaults due to communities putting in heavy restrictions on STRs, etc. It seems like this could have been avoided if people did more research before purchasing a property for an STR.

I personally believe that this is still a sound business idea if executed properly, however, whenever I talk to family and friends about this, most of them "down" this idea saying that there is no money to be made. For example, I have a connection in Dallas, TX who purchased multiple STRs in Miramar Beach, FL and claims to only be breaking even, which I found extremely difficult to believe because I also have a connection who owns a one bed, one bath condo in Destin, FL who made $78K in rental income, including the lodging tax and cleaning fees, and was still able to net approximately $35K in 2023. Therefore, I can't help but think that my connection in Dallas executed their STR in the wrong manner, but at the same time, they are having others pay for their condos which isn't bad either!

I've been highly interested in investing in a condo to advertise as an STR in Gulf Shores/Orange Beach, AL, Pensacola, FL, Okaloosa, FL, or Destin, FL, but have been lacking internal support and confidence to pursue this. I know that this is a personal flaw and that I should go for it if it makes sense to me after doing my own research, however, I can't help but think that it may not work out the way I believe it could based on all of the negative sentiment I have received from family and friends. Therefore, I figured I would come here to engage with professionals who actually do have a good amount of experience and/or success/failures in this area for any guidance, advice, etc.

Thanks everyone and I look forward to engaging in a productive discussion!

@Patrick Drury What are some of the rental rates you are seeing in Columbus for a 3 or 4 bedroom SF home?

@Joel Case It's crazy to see the the CoC return potential for the MS gulf coast now. I'm wondering if Biloxi will catch up, however, the supply there is much less. Property values are still a good deal in the area.

@Joel Case

I was raised in Ocean Springs MS and see the tremendous potential for CoC return in the market there.

@Ryan Thomson Thanks for the response! Yeah Colorado would be great to invest in for sure, but I think it makes sense to look at other markets for the time being. The southeast region is catching my eye (Texas, FL panhandle, and even MS & AL gulf coast). Could be good to get in those markets and generate some cash flow and use the equity on the property put a higher down payment on property in CO. 

Hey Everyone,

I currently live in Colorado and am looking to purchase real estate to eventually turn into a rental. What are your thoughts on good markets to be targeting (towns, cities, states, etc.). If you were looking to put little cash down and still generate CoC return, where would you be looking?

Thanks everyone!

You can't go wrong with any of the recommendations above. I just moved from Denver to Arvada near Standley Lake. I can tell you that there is so much development out here and open space for future development. It's a good spot to look at for housing that is cheaper than the other areas in the Denver area.

I know this is further out, but Grand Junction (the grand valley) is seeing a huge influx of newcomers as well. Property there is cheaper and there is a high demand in housing with limited supply at the moment. 

Does anyone have any recent experience investing in real estate in Grand Junction or Palisade, CO? The western slope? I'd love to hear your experience and any recommendations!

Thank you!

@Troy P. Thanks Troy! I couldn't agree more! I remember going to GS/OB when I was in college and never would have thought it would have grown to this extent. I wish I would have invested in the area back in 2009!

@Napoleon DeCiutiis Thank you for the recommendation!