So I have been looking at properties in the outer banks and USVI to acquire for a 2nd home / short term vacation rental.Had a realtor I have been talking with for several months about properties in the area text me today asking what my “pulse” was as his opinion was “People tend to buy more real estate for investments when the stock market is volatile” therefore he believes pricing on homes will surge.I kindly told him we are sitting on the sidelines to see how this plays out but my sense is with 2nd home / STR investment properties we are going to see many get crushed and not recover and see prices drop in these areas which are literally 70%+ vacation rentalsCurious as to the opinion of others on their thoughts of what will happen in these communities which are heavy on STR and the properties do not provide huge cash flow (most just cover expenses and some of mortgage but most cash flow negative)

One thing Mindy said did make sense, it is volatile.

Apparently it helps you determine how good your market does in compensating you for “bad volatility.”

Once you have that, subtract out Mortgage and ulitilites (and property management if you DON'T plan to self manage).From there I think you start to get a feel on STR vs sell.My gut tells me, with the volatility in the STR and real estate markets, not to mention the economy, it would me hard for me to not take a deal that brought a instant ~6 figure profit, and that's coming from a successful STR owner.Lastly, it's not all about financials....do you want to own/manage an STR?  

I don't know your personal situation or financial situation but I'd say the number one thing to do before jumping into real estate full time as an agent is get your own finances in check and ready to support some volatile months during the first 12-18 months.

If you are worried about market volatility then just buy them one at a time with 6 months between each purchase.I hope this is helpful!

That being said, higher cash flow markets are typically much more volatile.

Despite some market volatility, slow down, and saturation in some areas, smart, professional short-term rental investors continue to thrive, expand, and scale.

Might seem counterintuitive, but you might find a home without a pool that has a better yield if you’re willing to accept volatility in hard times.

Suburban properties and more stable Cleveland neighborhoods are continuing to enjoy strong demand from buyers as they tend to offer more predictability in financial outcomes and less volatility.