How do you see the STR market playing out in the long run (5+ years)?

AirBnB type investments are already very different than what they were a few years ago. Laws have also changed. I know people that had several STR properties that were doing well, but have sold them off.

I am finally now in a financial position to invest in RE. STR is attractive to me. But I'm wondering if I'm too late and missed the boat.

No one can actually predict of course. But please share your thoughts with me.

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You’re too late.

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It heavily depends on the market, but in most STR-friendly markets, there’s a huge oversaturation that will put pressure on prices and occupancy. With the current 7%+ mortgage rates, you’ll be hard pressed to be generating high returns without significant value add.

likehelpful

With recent changes in law, you’re exposing yourself to a ton of risk. Also, rates are insane right now - it’s not an easy market to grab something that is easily rentable.

likehelpful

Closing on my second STR next week. Deals are still out there but you need to make sure your underwriting is conservative. I made sure it would work as an MTR or LTR as well. Happy to chat more. Rates suck but the bonus depreciation is still better.

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