Today is an interesting question. Sandy reaches out and she's asking about longterm versus short-term rentals. This is actually a lady who is working with my team right now, and she thought that she would just send me this question to weigh out the options. So she writes to me and says my significant other, and I are considering investing in our first rental property together.
Congratulations, Sandy!
The investments you discuss and recommend our longterm rentals. We want it to ask your opinion on investing in short term vacation rentals and ask that you contrast the pros and cons of both types of investments. We are currently considering both long and short term rentals in the state of Florida.










Okay, well, Sandy, this is a good question. Now I know a few people who invest in vacation rentals, more specifically short term rentals that they market and advertise through places like Airbnb and a website called VRBO, and many of their properties are doing pretty well. And they do make a lot of money in terms of cash flow, but you know, it's a different type of animal. And I will be honest. I have never owned or operated a short term rental. Now I've stayed in a short term rental. It was actually a newly constructed property. So it was pretty nice, but I've seen others.
And I wouldn't say that I'd feel comfortable staying in many of the short term rental properties that I've seen. And that's not to say it's good or bad. It is what it is, but the variety of short term rentals out there are pretty amazing. But keep one thing in mind, um, when it comes to short term rentals, investing in short term rental properties is mostly about maximizing your income done, right? And in the right locations, you can get a very good cashflow from these properties. And in some cases it can be two times, three times, even four times what you would make on a longterm rental. There are some people who are out there just crushing it. So there are some pros and I don't have a major issue with short term rentals, but there are some cons if you will, that make me pause and think twice about pursuing it.
Now I have not pursued this Avenue and I am not intending or planning to, and I'll tell you why here in a minute now, when it comes to short term rentals, I'm just going to talk about the pros and cons, because I think most everyone listening to this show understands the pros and cons of longterm rentals. This is kind of just a quick comparison and painting the picture of what short term rentals are going to be like. But if you want to know the pros and cons of longterm rentals, it's more or less just the opposite of what I'm saying here. Just take the flip side of these arguments. So when it comes to the pros at the top of the list is just the ability to have far more cashflow than a longterm rental. So that's really the biggest benefit and the greatest motivator for people to pursue short term rentals is just that higher cashflow, whether it be monthly or annually, another benefit or pro for short term rentals has to do with the flexibility.
Now flexibility in the availability of the property and more so for you as a potential vacation spot. So the idea with short term rentals is that you want to have them in the right location. That is a critically important thing. And these are often places that have high tourist traffic. So these are areas that have strong demand because there is something going on there be like Disney world Disneyland. They are located in places where there's always a lot of people coming in to visit, take vacations tourism's going on. So if that's for you and you want to have a place in a location that you plan to visit frequently, well, it gives you the flexibility to have a schedule that you can put you and your family on and visit as often as you like. And then for the days that you are not there at that vacation rental, you can simply put it up on Airbnb or VRBO or wherever it may be,