All Forum Posts by: Melissa Wesling

As mentioned above, this all depends on your investment goals.  If you want to invest in a short-term vacation rental property in a Florida market, connect with me and I'd be happy to discuss your investment strategy in more detail along with the best markets that match your criteria!  

I agree with the suggestions to find the legal way to manage other's properties (ie real estate license if necessary). You may also want to consult a tax attorney about opening separate LLC's for your event planning business and your property management business if you decide to run it. It may be beneficial to have them separate. Decide if the handyman will be your partner in this. Property managers charge a percentage, so research what you would have to charge to be worth your time.

The best short-term rental markets are those that have demand for tourism-- having tourist attractions, national parks, beaches, mountains, etc. Rural areas have had higher demand due to the pandemic--I just read a report today about "farm stays" having an increase of 1,055% of guest searches! So, the location really all depends on your investment goals. Some investors just want a property that cash flows and they don't care about the location and others want to invest in a location where they like to visit or eventually would like to retire. When you begin to narrow your search, think about those goals and next look into the short-term rental rules and regulations. Following that, you can begin researching your competition in the market for rates and occupancy to get an idea on how other vacation rentals are doing in that market (although this can depend on how well managed the property is). Once you have narrowed down your markets, a qualified agent can help you determine ROI on potential properties. If the property has previously been a rental, reviewing their rental history is also very helpful.

I agree with the above and find that I am looking for future investments in established areas that already have short-term vacation rental regulations in place.  One problem that I've seen is that great vacation spots start to become "touristy" and then the city gets push back about STRs from the year round residents who don't like to see their town change.
Another thing to pay attention to is HOAs as they may have different rules than the city. A friend of mine had a legal STR where the city allowed STRs and then her HOA voted and decided they would no longer allow rentals for less than 30 days. They did not grandfather her in, but they did allow her to complete her bookings for the remainder of the year. Typically, but not always, you see larger municipalities grandfather in current permits after a regulation change.

I don't think it's a bad sign for the area that this portfolio is being sold. Like others mentioned, the seller may be ready to retire or turn the money into a different investment.  I invest north of here and the market is booming. 
I have recently come across a few portfolios for sale where the seller's goal to sell the portfolio at a higher price point because they are also selling their "business" along with it. In some cases, this is fair. However, since we don't have information on the other 19 properties in this listing, it is hard to say with this one. The listing only specifies that the pictured property has quality long-term tenants and of course no information about the history of the other properties. I would inquire about the rental history for all of the properties and also try to find out the estimated price for each individual property to see how it compares to the list price. I am interested to know if there is an added amount to the price tag for the business sale. Due your due diligence to determine if these are established rentals and if they've been cash flowing or can potentially cash flow. Are you wanting to do LTR or STR? There is a very limited area in St. Joe that allows STR, so you may want to use LTR numbers for your proforma.

Hi Michael! There are so many great markets in Florida and without knowing your investment goals, it's hard to know which area would be the best fit for you! 

Below are some general guidelines on investing in the Florida markets including the market zone, destination category, length of season, and recommended entry budget for a short-term vacation rental property in that market. The recommended entry budget is the starting point for your investment amount where you will begin to find a profitable short-term rental.

• Panhandle–Beach destination; somewhat seasonal; recommended entry budget: $500K
• South West–Beach destination/snowbirds; somewhat seasonal; $400K
• Central East–Beach and events destination; seasonal; $280K
• Central West–Beach destination; mostly seasonal; $400K
• South East–Beach and resort destination; year-round rentals; $500K
• Central–Theme park destination(events/resort/family); year round market; $300K
• Florida Keys–Beach, boating, fishing, family destination; mostly seasonal; $500K

Hi @Mari Puga! Without knowing your investment goals, it is hard to pinpoint the best areas in these states for you personally to invest in. However, I can let you know a few popular areas in these states where previous investors I've worked with have considered. In Vermont-- ski areas like Ludlow, Stowe, and Waterbury, Maine--Bar Harbor, New Hampshire--North Conway, and in Tennessee--Gatlinburg, Pigeon Forge, and Nashville (beware of the STR restrictions in Nashville). There are a few important things to remember when researching where to invest in an STR: understand the STR regulations there, hire an agent who understands the STR market, look into your competition, and run the numbers. Good luck!

The Savannah city government website provides the rental regulations and information on where STVRs are permitted.  Right now, the Downtown Historic District and Victorian District have met their cap. Nearby Tybee Island is a popular STVR destination but they currently have a STVR moratorium.  If buying a STVR, definitely do your due diligence when looking at properties to find a legal area.  To add, I recently visited Savannah and Tybee and had a great time as a visitor.  The area was busy and seemed to be doing very well for tourism.  

Hi @Chad Osborne! Folly Beach, Hilton Head, and Myrtle Beach are all popular markets with short-term vacation rental investors I've previously worked with.  I don't know much about the LTR market in the Charleston area, but message me if you'd like to discuss more about the short-term rental market there!

Are you an investor buying a short-term vacation rental property? 

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