In areas that are very tourist-desirable, like coastal/beachfront resorts in FL tiny homes can provide an alternative to higher priced hotel rooms and attract a younger clientele that is not looking to book the large (sleeps-12-at-a-time) condos.

The building has been passed over by many people due to the layout, but I have a creative and viable solution (boutique hostel/hotel hybrid in well-established and overpriced tourist destination). 

Cold still kills more humans worldwide than heat, so global warming is good for humans. 

I think the sweet spot for new STRs is finding mid-size national attractions that bring in a lot of tourists but haven't been priced out too much at the moment like some of the most famous national ones. 

Achieving 2-2.5x base rent in rental arbitrage is highly market-dependent and may work in tourist-heavy areas but is less realistic in stable markets like Houston.

Non tourist areas are almost never a good place to STR.  

Make sure to break it down by season to account for lower occupancy during the slower summer months and higher rates during peak tourist seasons (Mardi Gras, Jazz Fest, etc.).2.

But it illustrates the potential in Bay City.Key Considerations:Seasonal Tourism: Bay City sees an influx of tourists in summer.

Our market is very heavy tourists, so a lot of individually owned STR condos, but honestly I've personally have had more success in long-term rentals doing the BRRRR strategy with small multi-families and B-Class SFR's. 

Got off to a rough start and the tourist economy here hasn't bounced back, but this is a buy and hold deal so eventually it will even out!