It measures investment performance and helps in determining the property’s value.

Hi everyone,I’m conducting some research on what impacts the performance of vacation rental properties the most.

I’ve encountered managers who were fantastic in most areas but lacked in one or two key traits, and that was enough to impact the performance of the property.

This is especially important for those looking to scale their short-term rental portfolio.Property Appreciation: As short-term rentals continue to perform well, properties in popular neighborhoods are seeing strong appreciation.

They generally do not do this because either they are not aware of the changes or the loan is seasoned and performing so they are deliberately turning a blind eye.

Also, buy the properties that you would want to own the most 10 years from now...not the best year 1 cash flow performer.

You can pursue a judgement against the property owner for non performance under the loan agreement terms which would come up on a title report when they go to sell or refinance the property since a judgment search would be completed against the seller but that takes time and money.

These are critical aspects that can influence not only your budget but also the overall feasibility of the project.However, if you’re looking for a lower-cost value add, turning the shed into a high-quality storage space could be a solid first step.

I've never owned an ADU and I'm concerned about how it'll influence the primary which I also plan to list and rent. 

However, there doesn’t seem to be (in general) a more consistent performer as to appreciation than the SFR.