05/13/2026
We purchased this property for $525,000 in Dec. 2023.
In under 2 years, we’ve generated $257,095 in revenue.
It averages $10,712/month at a 68% occupancy rate.
The experience has taught us some important lessons about the interplay of location and operation.
Here are the key details and insights.
-
Lesson 1: Operational excellence can elevate a property's performance.
-You can have a property in a prime location, but if it's poorly managed, its value and returns will suffer.
-Conversely, even in a suburban location, strong operations can drive outsized performance.
-In our case, we focused on optimizing revenue, controlling costs, and delivering exceptional guest experiences.
-This operational focus helped us achieve an 18.9% cash-on-cash return.
While location is important, don't underestimate the power of superior operations.
-
Lesson 2: The sweet spot is aligning market dynamics with operational capabilities.
-Market selection remains crucial; we chose a location with strong STR demand drivers.
-However, we also recognized that our ability to execute operationally would determine our success.
-We developed a targeted brand positioning and backed it up with excellent guest service and efficient management.
-By aligning market potential with our operational strengths, we're projecting a 26-28% IRR over a 6-7 year hold.
-
The ideal investment aligns favorable market conditions with the unique operational capabilities.
Assess markets carefully, but also honestly evaluate your ability to execute within those markets.
Optimal results come from a combination of the right market and effective operation.
While market selection is foundational, how you execute largely determines whether you realize the market's full potential.
Would a property like this be worth a closer look?
