Cash Flow Positive: Part 1 - The Top STR Markets to Invest In

Summary

In this episode of *Cash Flow Positive*, host Kenny Bedwell critiques conventional top 10 STR markets lists, emphasizing their subjective nature. He identifies his top investment areas, including Berkeley Springs, Asheville, and the Bourbon Trail, highlighting the importance of factors like regulations and expenses. Bedwell advocates for careful research into lesser-known markets, particularly for cash flow potential, and hints at a future episode featuring a guest who successfully transitioned from larger to emerging markets. This discussion aims to equip investors with insights to make informed decisions in the evolving STR landscape.

Takeaways

• 😀 Many top 10 lists for STR markets are biased and based on personal experiences rather than comprehensive data.
• 😀 Market regulations can greatly impact the viability of an investment, regardless of its attractiveness.
• 😀 Investors should be cautious when evaluating markets, as not all properties within a top market will yield good returns.
• 😀 Higher demand for certain property types can skew market perceptions; consider the property mix when investing.
• 😀 Personal budgets and financial goals should guide investment choices, as not all recommended markets will fit every investor.
• 😀 Asheville, North Carolina, is highlighted as a strong market for cash flow, despite its increasing competitiveness.
• 😀 Berkeley Springs, West Virginia, is presented as a hidden gem with high potential for vacation rentals.
• 😀 Seasonality affects STR markets significantly, requiring investors to account for fluctuations in demand.
• 😀 Always evaluate the local inventory situation; limited availability can limit investment opportunities.
• 😀 The importance of market research cannot be overstated; understanding local conditions is key to successful investments.

Q & A

What is the main focus of this episode of Cash Flow Positive?

The episode discusses the top 10 markets for investing in short-term rentals and critiques the reliability of top 10 lists.

Why does Kenny dislike top 10 market lists?

Kenny believes they are often biased, lacking comprehensive data and not accounting for various critical factors such as regulations and property types.

What factors should be considered when evaluating investable markets?

Key factors include regulations, property types, budget constraints, local inventory, and the overall market dynamics.

Which market is ranked number 10, and what makes it notable?

Bradenton, Florida, is ranked number 10 due to its spacious properties and potential despite rising insurance costs in the area.

What unique opportunity does Taos, New Mexico offer to investors?

Taos is recognized as a strong ski market, but investors should be wary of inventory levels and regulations affecting property investments.

What are the investment opportunities in the Finger Lakes region of New York?

The Finger Lakes offers strong returns, though it comes with higher property prices, making it more suitable for investors with a larger budget.

What does Kenny suggest regarding investing in Asheville, North Carolina?

Kenny notes Asheville as a competitive market with significant growth potential, but advises caution due to potential regulations.

What are the cash flow considerations mentioned in the episode?

Kenny highlights Asheville and Bourbon Trail as top choices for cash flow, emphasizing the importance of lower expenses for maximizing revenue.

What market did Kenny label as the number one underrated investment opportunity?

Berkeley Springs, West Virginia, is identified as the top underrated market due to its strong vacation demand and affordable properties.

What does Kenny encourage listeners to do regarding unfamiliar markets?

He encourages them to explore markets outside their familiar zones, highlighting that good investment opportunities may exist in lesser-known areas.