Stop Asking Me What the Best STR Markets Are
“What are the best markets to invest in?”
It’s one of the most common questions Kenny Bedwell gets asked. But as the short-term rental industry has become more professional and competitive, that question has become much harder to answer.
In this episode of Cash Flow Positive, Kenny explains why there is no single list of “best markets” that works for every investor. The right market depends on how much you can actually invest, what you're trying to achieve, and what type of market you're willing to operate in.
Kenny breaks down how the professionalisation of the STR industry has changed the way investors should evaluate markets, why your budget can determine where you can realistically compete, and why personal preferences matter more than investors might think.
Key Takeaways
- Why “What are the best markets?” is becoming the wrong question as the STR industry becomes more competitive and professionalised.
- How the STR market has evolved from simply choosing a popular market to identifying the right property and sub-market within it.
- Why your investment budget can determine which markets make sense for you.
- The five components of an STR budget: down payment, closing costs, improvements, amenities, and furnishings.
- Why stretching your budget can quickly become a problem when unexpected project costs start adding up.
- How diminishing returns can affect heavily invested properties and why spending more doesn't automatically mean earning a better return.
- Why you need enough capital to compete with the existing top properties in the market you're entering.
- How to research what competitors are actually spending by looking at newly launched properties, their amenities, design, furnishings, and overall level of investment.
- Why today's investment costs matter rather than relying on what properties may have cost before or during the COVID-era STR boom.
- Why your investment goals need to be specific, whether that's cash flow, cash-on-cash return, tax savings, or long-term wealth.
- Why “I want as much as possible” isn't a useful investment goal and how establishing a minimum acceptable return can make decisions clearer.
- Why your personal preferences matter when choosing a market.
- How personal biases about certain locations can cause investors to overlook opportunities.
- Why you need to be interested enough in a market to operate the property well, even if you're primarily investing for the numbers.
- Why the average property isn't necessarily the target when you're looking for strong STR returns.
- How defining your budget, goals, and preferences together can narrow down the markets that actually make sense for you.
- The three questions investors should ask instead: What's my budget? What are my ROI goals? What are my personal preferences?
About the Host
Kenny Bedwell is the host of Cash Flow Positive and an experienced short-term rental investor. Through the podcast, Kenny shares practical insights on real estate investing, short-term rentals, market data, cash flow, and the lessons he's learned from building and operating his own portfolio.
Important Links
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LinkedIn: Kenneth Bedwell
Cash Flow Positive is an original podcast hosted by Kenny Bedwell.