Our monthly cash flow is lower, but it hasn't been detrimental to the investment overall. One of our Florida homes has a pool heater, and the electricity and general-maintenance costs have been higher than expected most months. I've only had one major unforeseen cost crop up. When I first looked into investing in real estate, I did online research and used investment calculators on sites such as Bigger Pockets to work out the purchasing costs, operating costs, potential earnings, and costs of additions like furniture or decorations. I use an Excel spreadsheet to help me visualize where my money will go and the potential outcomes of a new short-term-rental investment.

If you're considering investing in an STR, always do a complete investment analysis first. Do a thorough investment analysis before you invest in a property

They will know which locations are the best for STRs and why people are willing to pay more to stay in a specific ZIP code. To avoid investing in an area that won't be lucrative, find a real-estate agent who works with investors or has experience with short-term vacation rentals in the area where you're looking to buy. Leverage as much local knowledge as you can by reaching out to people already in the industryįinding a profitable short-term rental is different than hunting for traditional real estate. Account icon An icon in the shape of a person's head and shoulders.

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