One of the hottest topics in all of real estate.
I personally bought my own close to a year ago, and I can confirm that the results have lived up to the hype.
So much so that, I have dug in deeper into the industry.
I have even joined a mastermind and coaching program.
I’ve gone to several conferences to learn more about the space, and more importantly, to learn more about the tools and strategies that other successful investors are using.
Side note, I could get used to conferences in Miami on South Beach.
These events were top of the line and led by two experts in the industry, Michael Sjogren, Founder of Short Term Rental Secrets, and Bill Faeth, Founder of Build Short Term Rental Wealth.
On top of that, just last month, I was in Memphis at another conference led by Tim Hubbard of R.E.S.T. Methods. At these events, I spoke with people who specialize in vacation rentals, corporate housing, traveling nurses, insurance relocations, and so many other strategies.
However, the key take away was that the technology that you use in your business (your “tech stack”) will make or break your success.
With the right tech, you can automate much of the guest interaction from reservation to checkout. The tech stack allows for those who get it right to scale rapidly and create significant cash flow.
Because of the return potential, people all over the world are looking into how they can enter the space, and BIG institutions are starting to pay attention.
Marriott Hotels has entered the world of short term rentals that are not typical hotels. They have partnered with owners of 60,000 properties to compete against the likes of Airbnb and VRBO. You can read more about that here.
For further proof that the hospitality industry is attracting large investment dollars, check out this article.
The W Nashville, a hotel in Nashville, Tennessee, recently sold for $328.7 million. This amounts to $950,000 per rentable unit, or “per key”, as the hotel industry refers to it.
It’s because these properties can be cash cows.
It’s not uncommon for investors to make 10, 20, 30, or even 40% cash on cash return when a property is operating effectively and you are able to self-manage the property.
If you cannot self-manage, you can still find properties providing double digit returns. There are so many ways to make profits in the space, it’s simply astounding.
However, there are also ways you can lose money.
They may hear that a particular market is hot, and they run to the mountains and buy a cabin before realizing what makes a good rental.
Not only does your purchase price matter, but the number of bedrooms matters. Amenities matter. Location matters. Most importantly, systems matter.
It can be possible to run a short term rental without systems— but the key to true success is to put systems in place that can automate the vast majority of the business, especially if operating several properties.
You may have even experienced these systems while staying in an STR and not even realized it.
We have invested our time in learning from the best in the space, and we plan on partnering with the best in the space.
Ambition Capital Group is actively looking at short-term rental opportunities that it can pass along to its investors, and we have a few opportunities in the pipeline now.
If you have any interest in learning more about potential short term rental opportunities, please schedule a call linked below.
Until next time, go out there and make it happen!
