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šŸ’µ From Side Hustle to Full-Time Income: Exploring STR Investments

Whether you’re a newbie looking for your first property or already own a few rentals and wonder if it’s worth adding another, keep reading for a quick look at why vacation rentals continue to attract investors. ā¬‡ļø

Community Perks with The STR Report

šŸ  Top-Tier Property Management ā€“ Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. Mention The STR Report by TODAY, 6/30/25 & get your first month completely FREE.

šŸ”Ž Personal Airbnb Investment Finder ā€“ Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing at least a 15% Cash-on-Cash return.

šŸ¤‘ STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

June 30th, 2025

Good evening STR Report Community!

In today’s issue, you will find:

šŸ“±Today’s Article: šŸ˜“ šŸ’µ Side Hustle to Full-Time Income - Making Money While You Sleep

šŸ“ˆ Trending Market Highlight: Little Rock, Arkansas and Des Moines, Iowa

āœ‰ļø STR News: Why travel and damage protection should be part of every property manager’s strategy & more

šŸ’ø Mortgage Rate Watch

šŸ›‹ļø Unique Airbnb of the Week

šŸ« Subscriber Perks: Go Live Playbook, including: Beginner’s Guide E-Book, Guest Communication Messaging Templates, Airbnb Welcome Guide Template, STR Buy Box Template, & Tax Savings E-Book

āœ… Community Perks: Top-Tier Property Management, Personal Airbnb Investment Finder, and STR Loans & More

šŸ“¬ See our collection of newsletters here: Prior Newsletters

From Side Hustle to Full-Time Income: Exploring STR Investments

Whether you’re daydreaming about buying your first short-term rental or wondering if it’s time to add another to your growing portfolio, understanding the benefits of vacation rental investing is key. Let’s dive into why so many investors are choosing this path, and why it might be the right move for you.

black and white sleep GIF

How you sleep knowing your STR’s working the night shift:

šŸ’° Higher Income Potential

One of the biggest draws of vacation rentals is income. Unlike long-term rentals that lock you into a fixed monthly rent, short-term rentals let you adjust rates dynamically based on demand. In peak seasons—think holidays, local festivals, or summer getaways—you can significantly increase your nightly rates, often generating as much in a week as a long-term rental might bring in a month.

Example: In some markets, a well-located 2-bedroom STR might earn $3,500–$5,000 per month compared to $1,800–$2,200 as a long-term rental.

Of course, seasonality and market saturation play a role, so careful research and pricing strategies are essential.

🌓 Personal Use Flexibility

Investing in a vacation rental isn’t just about profits, it can also be a lifestyle choice. One of the unique perks is the ability to block off dates and use your property for personal vacations.

Want a weekend at the beach or a ski trip in the mountains? As an owner, you can enjoy your property without booking hotels, all while building equity in a real estate asset.

Many investors love this ā€œbest of both worldsā€ approach: earning income while creating personal memories.

šŸ˜ļø Diversification and Appreciation

Real estate, in general, is a strong hedge against inflation and market volatility. Short-term rentals add another layer of diversification because they often cater to leisure travelers, business travelers, and even mid-term renters like traveling nurses or remote workers.

Moreover, properties in desirable vacation areas tend to appreciate over time. Even if nightly rates fluctuate, your asset may gain value, boosting your overall return on investment (ROI).

🧾 Tax Advantages

Vacation rentals can provide attractive tax benefits, though the specifics depend on how often you personally use the property and how you classify it for tax purposes. Potential deductions may include:

āœ… Mortgage interest
āœ… Property taxes
āœ… Utilities and insurance
āœ… Cleaning fees and maintenance
āœ… Supplies and furnishings
āœ… Depreciation of the property and assets

Properly structured, your STR could help reduce your taxable income. However, tax laws are complex, so always consult a tax professional experienced in short-term rental investing.

⭐ Guest Experience and Reviews

A thriving vacation rental business hinges on excellent guest experiences. Happy guests leave glowing reviews, which improve your listing’s visibility on platforms like Airbnb, Vrbo, or Booking.com.

Positive reviews boost occupancy rates and allow you to charge higher nightly rates over time. Plus, hosting travelers from around the world can be personally rewarding—you’ll meet interesting people and become part of their unforgettable trips.

šŸš€ Building Wealth and Future Opportunities

For many investors, STRs are a stepping stone to larger goals. Successful vacation rentals can generate cash flow to fund additional properties, diversify into other markets, or even replace traditional income entirely.

Investors often leverage profits to:

  • Purchase additional STRs

  • Invest in property upgrades to increase nightly rates

  • Transition into higher-end or luxury rentals

  • Explore niche markets like pet-friendly stays, remote-work retreats, or themed experiences

The Bottom Line

Vacation rentals offer a unique blend of financial opportunity, personal enjoyment, and flexibility. But like any investment, they’re not without challenges- regulatory changes, local restrictions, and market shifts can impact your bottom line.

If you’re considering getting started—or scaling up—do your research, run the numbers, and treat your STR like a business. Done right, vacation rental investing can open doors to exciting financial and lifestyle possibilities.

Little Rock, Arkansas 🪨

Downloadable Little Rock, Arkansas Short-Term Rental Market Report

Little Rock STR Market Report.pdf1.04 MB • PDF File
  • Average Daily Rate (ADR): $161.22 per night

  • Occupancy Rate: 53.66%

  • Annual Revenue Potential: Around $31,600.02 per year

Read our full Little Rock, Arkansas Short-Term Rental Market Report attached above.

Des Moines, Iowa 🌾

Downloadable Des Moines, Iowa Short-Term Rental Market Report

Des Moines STR Market Report.pdf1.30 MB • PDF File
  • Average Daily Rate (ADR): $182.54 per night

  • Occupancy Rate: 53.02%

  • Annual Revenue Potential: Around $35,325.21 per year

Read our full Des Moines, Iowa Short-Term Rental Market Report attached above.

šŸ“¬ See our collection of 60+ market reports here: Prior Trending Market Reports

šŸ’» Sonder CEO Davidson Exits, Chairperson Named Interim Boss
Sonder co‑founder and CEO Francis Davidson stepped down from both his executive and board roles as of June 24, 2025, with board chair Janice Sears named interim CEO—serving for up to six months—amid a leadership transition following integration efforts with Marriott and ongoing financial restructuring.

🐻 Casago franchisee expands in Big Bear with former Vacasa properties
Casago franchisee Big Bear Vacations has acquired 39 former Vacasa-managed properties in Big Bear Lake, California—bringing its local rental management portfolio to over 340 vacation homes under the Casago brand.

šŸ› ļø Why travel and damage protection should be part of every property manager’s strategy
Including travel and damage protection in a property manager’s strategy helps boost guest confidence, reduce financial risk from cancellations or damages, and improve overall booking conversions.

šŸ’ø Inspirato to Merge With Buyerlink in $326 Million Deal for a New Platform
Inspirato is merging with Buyerlink in a $326 million deal to form One Planet Platforms, aiming to keep Inspirato’s luxury travel brand while targeting $350 million in 2025 revenue.

šŸ’øMortgage Rate Watch – June 30th, 2025

Current Mortgage Rates (as of June 30, 2025):

  • 30-Year Fixed: 6.79% (-0.05%)

    15-Year Fixed: 6.18% (-0.04%)

    30-Year Jumbo: 7.12% (-0.09%)

    30-Year FHA: 6.26% (-0.04%)

    30-Year VA: 6.36% (-0.04%)

    7/6 SOFR ARM: 6.69% (-0.06%)

Market Overview: Mortgage rates have seen modest declines today, continuing the trend of slight downward movement across most loan types. A generally stable bond market and continued investor sentiment suggest that rates are in a holding pattern, with minor fluctuations being driven by economic data releases and Federal Reserve signals.

The 30-year fixed rate has hovered between 6.11% and 7.52% over the past year, and recent trends show some relief from the higher borrowing costs that have been a challenge for buyers.

Rate Trends & Forecast:

  • Short-Term: Rates are expected to remain relatively stable with slight changes depending on economic indicators and Fed policy shifts.

  • Long-Term: As inflation continues to ease, mortgage rates may trend downward, but significant decreases are unlikely without a major shift in economic conditions. The Fed's policy will remain a key influence on mortgage rates throughout 2025.

For real-time mortgage rate updates, visit Mortgage News Daily.

Bored of staying at regular Airbnbs?šŸ›‹ļø

As seen on CBS as one of the ā€œTop 5 Getaways in Arkansas,ā€ the newly renovated Mills-Davis House offers a dazzling blend of historic charm and modern luxury in the beating heart of downtown Little Rock. Just four blocks from the River Market and steps from museums, theaters, and four of the city’s finest breweries, this spacious 2,000 sq. ft. upstairs apartment dazzles with original 19th-century woodwork, sun-drenched arched windows, soaring ceilings, and a dreamy clawfoot tub for ultimate relaxation. Whether sipping vintage cocktails at the retro Dust Bowl bowling alley, exploring the Clinton Presidential Center, or simply savoring the view from your private balcony, this beer, food, and culture lover’s paradise ensures an unforgettable stay. Enjoy lightning-fast WiFi, plush linens, free off-street parking, and a perfect downtown location—welcome to the good life in Little Rock!

Subscriber Perks:

šŸ“–šŸ”šŸ’° Go Live Playbook

The "Go Live Playbook" is your all-in-one guide featuring a beginner’s guide e-book, messaging templates, Airbnb welcome book, STR buy box template, and tax savings tips to kickstart your short-term rental success.

Community Perks with The STR Report

šŸ  Top-Tier Property Management ā€“ Lower fees, higher payouts, and premium service. Built for investors who want performance and peace of mind. Mention The STR Report by TODAY, 6/30/25 & get your first month completely FREE.

šŸ”Ž Personal Airbnb Investment Finder ā€“ Connect with an expert to handpick profitable Airbnb properties that match your criteria. With 213+ successful deals, all cash-flowing, you’re in good hands. Take 15 seconds to fill out the form to see how all of these properties are experiencing at least a 15% Cash-on-Cash return.

šŸ¤‘ STR Loans & More – Need funding for your next short-term rental? Expect expert guidance, personalized service, and the best possible rates.

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