“Fake news” has become a buzzword (and, dare we say, meme) in recent years, but when it comes to short-term rental investments, there’s plenty of “fake news” circulating. We understand that short-term rental myths are the symptom of misinformation, so we are here to set the record straight.
Myths exist to explain the unknown and unexplainable. With the help of cutting-edge short-term rental intelligence powered by STR Verifi, a short-term rental calculator that empowers you to access crucial metrics about any market or property anywhere in the USA, the unknown and unexplainable are a thing of the past in short-term rental investing. And the myths people construct to cope with the unknown should follow suit.
At mbanc, we have been helping self-made people like you finance their short-term rental investing journey to live out their American Dream for years. Read our blog to learn why common myths about short-term rental investing are wrong.
Debunking Common Short-Term Rental Myths
There are countless myths surrounding investing in short-term rentals. From the best locations to the truth about ROI, read on to learn the truth and debunk these myths.
Short-Term Rental Investments Must Be in Popular Vacation Destinations.
Many people think that if they don’t buy a short-term rental property in a major vacation or leisure destination, there’s no point in investing in one.
The truth is that this could not be further from the truth. While popular tourist destinations like the Florida Keys, Miami, or even Malibu consistently provide a high ROI, that is far from the only route to success.
The reality is people travel to different places for several reasons. Some of the best short-term rental markets aren’t the most well-known vacation destinations.
“Tourism is just one component of what makes a market great to invest in. Countless others are key to consider, like occupancy rate and average daily rate. Maybe these metrics aren’t as sexy as tourism, but they are, in many ways, more indicative of potential success.” – Desh Weragoda, mbanc CTO.
By looking at these metrics, you can unearth markets that are hidden gems, but it can be difficult to calculate them without considerable expertise. Luckily, the cutting-edge short-term rental analysis powered by STR Verifi makes this more accessible than ever.
STR Verifi enables you to access key metrics of any market and property in the country instantly with unrivaled accuracy to uncover excellent markets that are easier to enter.
The ROI On Short-Term Rental Investments Has Declined.
One of the most pervasive short-term rental myths to debunk is that the golden age of short-term rental ROI has come and gone.
Countless reasons persist that cause people to espouse this untruth. A major reason is the undeniable impact the pandemic had on virtually every industry. But the truth is that there is virtually no evidence to support this claim. You could actually argue the opposite is true.
“When we look at the state of the industry, what we see is that people are more interested and inspired to travel and see new places than ever before, especially after being stuck at home for years. Demand and revenue currently eclipse what they were pre-pandemic. Demand has risen 24% since 2019, and revenue has risen 22% in the last year alone and 60.5% since before the pandemic. I would go as far as to say, historically, this is one of the best times to buy a short-term rental property.” – Desh
It’s Hard to Break Into Short-Term Rental Investing.
Another one of the most common short-term rental myths is that it is hard to break into this type of investing. And we’d be lying if we told you that entering an endeavor like this was a total cakewalk. But, in this situation, that adage is true – fortune favors the bold.
Fortunately, tools like STR Verifi and financing options like non-qm DSCR loans and bank statement jumbo loans embolden investors and empower them to not just break into the top short-term rental markets but conquer them.
The short-term rental data intelligence powered by STR Verifi takes the guesswork out of investing. It gives you an advantage on par with a crystal ball by enabling you to forecast the ROI from potential properties anywhere in the nation with unmatched accuracy.
With this innovative software, you can rest assured you buy a short-term rental property in the best markets for short-term rentals. Couple that with DSCR loan programs and bank statement jumbo loans, and the tools in your arsenal are the great equalizer.
DSCR loans enable you to qualify for financing using projected rental income from a property, so the investment property pays for itself. With bank statement jumbo loans, you can qualify using 12 or 24 months of bank deposits.
Self-Employed Mortgage Solutions for Real Estate Investing
Short-term rental myths are more than misinformation. They can discourage you from pursuing and achieving your American Dream. The truth is that short-term rental investments can help you create the kind of financial freedom this dream is built on. At mbanc, we offer state-of-the-art tools and expert guidance that eliminate the unknown from investing and help investors confidently navigate this industry. Our passion is partnering with you to bring your dreams to fruition.