February 8th, 2025

Good morning STR Report Community, and welcome to a special edition of The STR Report!

In today’s issue, you will find:

📱Special Edition: The Tennessee STR That Boosted Returns by 52% 🚀💰

📬 See our collection of newsletters here: Prior Newsletters

The Tennessee STR That Boosted Returns by 52% 🚀💰

The Opportunity 🏡

This Tennessee short-term rental showcases the power of a full-service, end-to-end investment strategy — from sourcing and design to construction and management — all while ensuring full ownership and profit retention.

The process began with long-term financial planning, establishing a $250,000 out-of-pocket budget and setting location preferences to identify a high-performing STR property.

The Investment 📊

After evaluating multiple markets based on performance indicators like ADR, occupancy, and seasonality, five target markets were finalized with criteria such as proximity to a city and a pool.

Projected Key Metrics at Acquisition:

• Purchase Price: $642,000

• Furniture Cost: $52,192

• Amenity/Remodel Cost: $62,192

• ADR: $466

• Occupancy Rate: 72%

• RevPAR: $335

• Annual Revenue: $122,382

• Cash-on-Cash Return: 19.53%

Strategic Design for Premium Appeal ✨

Following closing, the property moved into design and listing prep with furniture orders, amenity construction, painting, and staging. Unique additions included an outdoor kitchen, pool, and jacuzzi to enhance guest experience.

Performance After 6 Months 📈

Post-launch optimization focused on monitoring booking trends, adjusting pricing strategies, and identifying growth opportunities.

New Performance Metrics:

• Occupancy Rate: 67%

• ADR: $594.16

• RevPAR: $398.09

• Annual Revenue: $145,302

• Cash-on-Cash Return: 29.76%

👉 That’s a revenue increase of over $22K and a significant jump in returns.

Tax Advantages 💸

By leveraging accelerated depreciation through the short-term rental loophole, the investor generated an estimated $202,000 in tax savings, calculated as (Purchase Price + Improvements) x 28%.

Why It Matters 🔑

This case demonstrates how structured planning, data-driven market selection, strategic amenities, and ongoing revenue management can strengthen cash flow and uncover expansion opportunities for future acquisitions.

Ready to create your own success story?
Whether acquiring your first property or scaling a portfolio, the right strategy can make all the difference. 👇

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Subscriber Perks:

📖🏡💰 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.

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