All Forum Posts by: Melissa Wesling

It depends on how the study determined the results/rankings and if it was based on data provided at certain dates being researched (long-term/short-term, etc). The study stated, "we rank our top 25 markets based on cap rate, or rate of return on your investment." I'm not an expert at this, however cap rate and ROI are similar but not the same. Some investors may evaluate their investments differently. For example, we like to look at the Internal Rate of Return.
Orlando is still very popular but somehow it wasn't ranked based on the data they gathered for the study (which wasn't described in detail, at least in the link provided).

Good question because there are so many great markets in Florida! Orlando and the panhandle are very popular with investors.  I also see investors seeking properties in St. Augustine, Tampa area, Cape Coral, Fort Myers, Siesta Key, Miami/Fort Lauderdale, Daytona Beach and West Palm Beach.  The important thing is to make sure you are looking in the areas legal for short-term rentals and that the numbers work to meet your investment goals.  We just added a property in Panama City Beach because it is rental friendly, has great projections, and we love the beach there!  

@Tiffany Kho Typically the city government website will describe their short-term rental regulations. You can type in "short-term rentals" in the search bar or look under "departments" for the "planning" or "zoning" departments. If you are looking near Disney World, you'll want to look into Kissimmee and Davenport as they are STR friendly.
Often you will need a permit or registration when an area is zoned for legal STRs. 
There are many areas of Florida that are STR friendly, and if you do work with a realtor who is knowledgeable about their vacation rental market, they can help you find a profitable property in the "sweet spot" of that market.   

Hi David! The research can be overwhelming, but it sounds like your doing your due diligence if you are reading/listening to Bigger Pockets podcasts and Avery's book.  The Rich Dad/Poor Dad series is another recommendation. 
As for taking action, our goal is the 1% rule. So we want to pull in rental income that is at least 1% of the purchase price each month (If a house cost $100K, your goal would be to get $1,000/month income. This can vary with seasonal rentals and you'd then take an average, but you get the idea). Once you narrow down your preferred markets for purchase, hire a knowledgeable realtor who understands the STR regulations and the "sweet spot" of each market. Look at the current rentals in a market you like to see if they are getting the returns you hope for (this can vary based on management, etc, but can give you an estimate) and this should begin to help you zero in on where/what to buy and how much money you'll need.

Great set up!  We tend to draw families in the summer because we only rent Saturday to Saturday and we are near the beach, playgrounds, splash pad, etc. We also offer a few items like a pack n play and small high chair.  However, we do tend to get quite a few bachelorette parties/girls trips/couples trips when we go to a two night minimum.

Hi @Maria Ferre I agree with the others that I would choose the home in the Poconos if the numbers work. I would choose this property mainly because it is already a tourist destination and there are areas already established for short-term rentals and have regulations in place.  Additionally, it is drivable for you which is helpful, especially if you want to self-manage. 
I'm not certain the Ohio town is a tourist destination and it sounds like the rental history being looked at only includes a few months. The A-frame sounds really cute, but don't buy the nicest home in the neighborhood. If you really like this style, maybe look for an A-frame in different location that will fit your investment goals.  

Hi Chip!  You are starting our right with research.  I am not in Denver, but we do self-manage our vacation rentals from a distance (drivable at just a 2.5 hour drive). If you are looking at doing short-term vacation rentals, let's connect and I can let you know some of the things we have in place that help us manage the properties on our own! 

Hi @Glenn Gruschow! My STRs are in lower Michigan but I have done research and know investors who have STRs in the Traverse City area. It's a great market as it tends to draw guests year round. Like you mentioned, be aware of the short-term rental regulations through the city but also pay close attention if there is an HOA. The HOA may have some fine print about rentals less than 30 days. A friend was renting out her cabin in Harbor Springs and then HOA changed the rules to only allow rentals for 30+ days.

I have a spreadsheet I like to use if you are considering REI in short-term vacation rental properties. It allows you to play around with average nightly or weekly rent rates and number of weeks rented so you can find your break even or estimated profit. As mentioned, these tools are all estimations but nice to use when playing around with the numbers to see what you need to find your "deal" according to your investment goals. Connect with me if you want the link!

If a previously operating vacation rental property is being sold, it is likely being sold furnished.  Now if the furniture is in good condition or meets your brand standards is variable! Many times the furniture will be good enough to get you started, but you may want to replace/update old furnishings to stay competitive.  In my STRs (beach market), couches are the most replaced furniture item, being updated every few years.