Purchase price: $515,000 Cash invested: $960,000 Sale price: $1,850,000 New Construction development, What made you interested in investing in this type of deal?

I know that anything in California price-wise is far above many parts of the country. 

Purchase price: 3.

Alas, this scenario didn't last very long, as you would expect in a free market capitalist society -- new money flood in, more STRs in supply, property prices increase, STR incomes decrease, until a new equilibrium is achieved.Nowadays, the word STR is being used to describe both the property and the business.

It seems every market goes through a cycle -- unnoticed potential; early titillation as the potential becomes known; flood gates open and gold rush is on; property prices rise, revenues drop, regulations come in; and finally balance is found.

Just make sure you are saving towards those slow months during the peak months, buy a deal at the right price (don't overpay just because its a turnkey STR or you think it will make more money than projected), and look into ways to increase bookings during those slow months with some marketing and operation tweaks. 

We anticipate we'll pay approximately 2.25% of the purchase price.

I bought a property in Mesa in Sept, 2022 over price.

You mentioned price, are you too high?

We put 100% of the purchase price per the contract into escrow 2 days before closing.5.