How to Get Started in STR Investing
Thinking About an STR Investment? Start Here.
The property comes last, not first. Here's the order that actually works.
I work with STR investors throughout Northern Michigan and I'm always happy to talk through where you are in the process. Call or text Amy — 510-676-9075
Most people start their STR search by browsing listings. They find a property they love, run some quick math on projected nightly rates, and wonder whether it pencils out.
That's the wrong order. The property should be the last decision you make, not the first. The right property for you depends entirely on your financial situation, your goals, and your strategy — and those take some work to get clear on before you start shopping. Here's the sequence I walk my clients through.
Start with your CPA
Before you look at a single listing, sit down with a CPA — ideally one who works with real estate investors. This conversation will shape everything else.
An STR can do different things for different people: generate cash flow, offset income through depreciation, qualify for specific tax strategies, or build long-term wealth. What it should do for you depends on your income, your tax situation, and your goals. Getting that clarity first means you'll shop for a very different property than if you start with a search.
This step is not optional. The difference between a well-structured STR investment and a poorly structured one can be significant — and a good CPA will help you understand what kind of property actually makes a difference for your specific situation beyond just the nightly rate return.
Decide how much you're thinking
Once you have a strategy, figure out what you're comfortable putting in — and then speak with a lender to make sure you're prepared before you start shopping.
STR properties are financed differently than primary residences. Some lenders use projected rental income in their calculations, others don't. Getting pre-approved tells you exactly what you can access and removes a major source of uncertainty when you're ready to move on a property.
Coming to the search with a clear budget isn't a limitation — it's what makes the whole process efficient and keeps you from falling in love with something that doesn't actually work.
Find a realtor who can find the right property
Not every agent knows the STR landscape in Northern Michigan. Township ordinances, permit caps, license transferability — these details matter enormously for an investment property and require someone who stays current on them.
The right agent will verify the rules before you fall in love with a property, help you evaluate whether it fits the strategy you built with your CPA, and guide you through the due diligence questions specific to STRs.
That's exactly what I do. I own and operate an STR in Traverse City, I know the township rules across five counties, and I'm always looking for serious investors who want to do this right. Once you've done steps one and two, give me a call — that's when the fun part starts.
