In the past few years, short-term rental properties have become a popular alternative for tourists looking for temporary lodging while on vacation.
They have also become a great way to invest in real estate. To help you get started, I put together a step-by-step guide to investing in short-term rental properties.
1. Choosing the location/neighborhood where you want to buy a short-term rental property
One thing that doesn’t change in real estate investing regardless of your investment strategy is the importance of location.
2. Get in touch with a Real Estate Proffessional (ME) to guide you through this journey
I have knowledge about STR, I have connections with local lenders to help with the financial side.
3. Finding the Perfect Property
Once you’re confident in your location, the next step is to decide what type of vacation rental property to buy. Our most common types include condos and single-family homes. Each type of investment property has different features that attract short-term guests.
4. Investment Property Analysis
So, after you find a potential property , together we'll perform an investment property analysis to make sure it’ll be profitable. A short-term rental should make positive cash flow so you can afford it even when it’s vacant.
Here is a list with rental expenses you should expect:
-Mortgage
-Property taxes
-Lodging taxes
-Insurance
-HOA fees
-Utilities
-Management fees
5. Managing the Property
The last step of investing in short-term rental properties is, of course, managing your investment. There are two ways to do this: You either do it yourself or hire a professional property management company to do it for you.
