Short Term Rental Secrets Podcast Most STRs Fail Because They Cut Corners (Here’s the Math) | The STR Scale Show with Mike Reilly | Ep 22
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Jul 24, 2025 Discover how investing in short-term rentals requires a solid strategy and a budget of at least $150K–$200K for success. Learn how one team transformed a $715K property into a cash-flow winner and why outdated listings are struggling. The episode spills secrets on the new rules for furnishing, revealing that the old $6K per room guideline is out. Find out why waiting to add amenities could mean failure and explore the game-changing approach of securing direct bookings over relying solely on platforms like Airbnb.
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Minimum Investment Threshold
- Invest at least $150,000 in single-family short-term rentals to achieve 20%+ cash on cash returns.
- Budget furniture and amenities wisely to avoid competing solely on price and instead compete on guest experience.
Supply Growth and ADR Impact
- Supply of short-term rentals in the U.S. has surged by about 800,000 since 2020, increasing competition.
- Without strong amenities, you primarily lose revenue on average daily rate (ADR), not occupancy.
$715K Property Turned 26% Return
- Mike's team bought a $715K property, invested $230K in upgrades including a sauna, hot tub, and golf simulator.
- This property is now pacing to a 26% cash on cash return with strong bookings and higher ADR.