[USER]

Seems like a good idea but also potentially fraught with problems, bad tenants, repair costs, etc. Just want to hear the pros and cons?

[Sylvia]

I have one that is doing well. I self-manage but have a local cleaner who takes care of a lot of different things. It is in an area I like to visit and may move to in the future.

[Damon]

We used to have a vacation rental. It stayed occupied by bachelorette parties. One of the better real estate transactions we made. We sold it because we never visited it. This is before the STR market got so saturated.

Now we have a waterfront weekend home but so far we have chosen not to STR.

You can check also: Anyone having success with ESG investing?

[Mike]

I used too but sold out. The market is wildly over saturated at this point. I made a good chunk of money in the 2 years I did it, but those days passed. Am I saying you can’t find something that will cash flow no. It just much harder now and on the downward cycle.

If you wanted to this I’d wait 12-18 and re-evaluate.

[Damon]

I have a cabin in Wisconsin that we rent out on Airbnb. Still deciding if it’s worth the extra hassle vs our long term rentals. It’s nice to have a place to visit though!

[Brett]

There are a lot of little things you might not think of.

Vacations bring expectations. Have VERY good cleaner because one single hair left in the wrong place can mean bad reviews and refunds.

Or something undesireable gets left inna drawer or under a bed.

It also brings careless attitudes, drinking, and luggage… all of which tend to increase cosmetic damage.

Also consider costs when someone turns up the heat or drops the temp for AC and leaves it running full blast for days after they leave.

Or worse, when someone turns up the pool thermostat and no one notices until the pool guy catches it weeks later, or worse when the utility bills arrive to the tune of hundreds of dollars.

As someone else mentioned, a lot of areas are oversaturated… so do your research carefully. And fully inspect city and county ordinances as well as HOA’s. Many areas have restricted short term rentals.

Personal opinion, the hay days are over for short term rentals. There’s good money to be had in places, but the great money is tough to find.

Don’t miss: I am 45 and would like to start saving and investing towards retirement

[Jacki]

Profits are declining since guests are going back to hotels, traveling internationally or not traveling at all. STR’s are a ton of work. We have 10 of them and started in 2014 so we got in early and have been through it all.

It’s hard to cash flow at todays home prices and with todays market saturation.

[Jessica]

Finding decent or really any cash flow is hard now. Short term renters don’t have rights, so you don’t have to worry about evictions. You need to refresh items frequently (pillows, towels, wash clothes, toiletries, ect). Finding good cleaners and handyman services can be difficult. There are good tax benefits compared to LTR (not an expert on tax!). My a/c unit died with guests staying when it was 90+ degrees outside. Repairs need to happen quick and can’t always shop around.

I personally love hosting….I smile every time I have a guest check in. But it takes hospitality skills to be successful. Most guests are great, a few are a pain. I’m not an expert by any means.

[Dana]

The pandemic changed the way people traveled, people wanted to keep there distance from others but still wanted vacation.

I have 6 short term rentals and two long term rentals that do exceptionally well. In CO home values continue to rise in particular small mountain towns. If I wanted to, I could sell them all and FATfire tomorrow.

I’m not going to because of the income and I’d like to leave my children an inheritance.

Have you seen: Upgrade Your Hair Care: Investing in Quality Products

[Lucas]

I have 4 rental properties. In total I put in about $270k, still have $415k in debt on them. 3 of them are long term rentals, and 1 is a short term rental on the Texas coast, with 250’ pier. After all my expenses I clear about $42k per year. I also pay off about $15k in debt/year. So about $57k in net worth growth per year without appreciation which has been great the last few years. Over a 20% return on my money. Probably closer to 30% with appreciation. I also pay very little taxes due to expenses and depreciation.

It’s a huge part of my FIRE plan. I bought older homes in working classs areas where there isn’t enough housing. 2.5 hours from my house. I renovated them to be idiot proof. Laminate floors, regrout showers, etc. I do some repairs myself and I pay people to do most of my repairs though.

The long term rentals are on autopilot and don’t require much at all except calling an occupational plumber or ac guy. Short term rental takes more time, but you can automate a lot of it.

Just messaging people and calling my local handyman most the time.

[Author]

Posts