AvantStay’s Acquisition Criteria
AvantStay focuses on acquiring properties that align with the following criteria:
- Location: Prime tourist destinations with high demand for short-term rentals.
- Property Type: Luxury vacation homes that offer unique, high-end experiences.
- Market Potential: Regions with strong tourism growth and favorable short-term rental regulations.
- Value-Add Opportunities: Properties that can be enhanced through renovation or improved management.
- Scalability: Opportunities to scale the portfolio quickly, leveraging local partnerships.
Plan for InvestmentGradeSTR.com
- Target High-Demand Markets:
- Focus on popular tourist destinations with strong STR performance, such as coastal cities, ski resorts, and cultural hotspots.
- Conduct market analysis to identify emerging areas with high tourism growth potential.
- Identify Luxury Properties:
- Seek out high-end vacation homes that can be positioned as luxury STRs.
- Look for properties with unique features, such as waterfront access, scenic views, or proximity to attractions.
- Leverage Value-Add Opportunities:
- Target properties needing renovation or improved management to enhance their value.
- Develop a renovation plan to maximize property appeal and rental income.
- Build Local Partnerships:
- Establish relationships with local developers, real estate agents, and property managers to source exclusive deals.
- Partner with local tourism boards and businesses to create compelling guest experiences.
- Utilize Technology for Efficiency:
- Integrate AvantStay’s technology suite for seamless booking and property management.
- Implement data analytics to optimize pricing and occupancy rates.
- Secure Financing and Investors:
- Leverage AvantStay’s funding capabilities to acquire properties.
- Develop joint venture agreements with institutional investors, family offices, and high-net-worth individuals.
By aligning your acquisition strategy with AvantStay’s criteria, InvestmentGradeSTR.com can successfully target properties that fit their investment goals and enhance your platform’s portfolio.
| State | Market | Reason for Popularity |
|---|---|---|
| Arizona | Scottsdale, Sedona | Scenic desert landscapes, luxury resorts, outdoor activities |
| California | Big Bear, Coachella Valley, Joshua Tree, Lake Arrowhead, Lake Tahoe, Los Angeles, Malibu, Newport Beach, Palm Springs, Paso Robles, San Diego, Sonoma, Temecula | Beaches, mountains, wine country, cultural attractions |
| Colorado | Breckenridge, Telluride, Vail | Ski resorts, mountain activities, scenic beauty |
| Florida | Destin, Emerald Coast – 30A, Fort Lauderdale, Fort Myers, Key West, Marco Island, Orlando, Pensacola | Beaches, theme parks, vibrant nightlife |
| Hawaii | Maui, Oahu | Tropical beaches, cultural sites, natural beauty |
| Maryland | Chesapeake Bay | Waterfront activities, seafood, historic sites |
| Massachusetts | Berkshires | Outdoor activities, cultural venues, scenic views |
| Nevada | Lake Tahoe | Skiing, lake activities, casinos |
| New York | Hudson Valley | Scenic landscapes, wineries, historic sites |
| North Carolina | Asheville, Lake Norman | Mountains, arts scene, outdoor activities |
| Oregon | Central Oregon, Oregon Coast | Outdoor activities, natural beauty |
| Pennsylvania | Poconos | Mountains, resorts, outdoor recreation |
| South Carolina | Charleston, Hilton Head, Isle of Palms | Historic sites, beaches, golf |
| Tennessee | Nashville, Smoky Mountains | Music scene, national park |
| Texas | Austin, Corpus Christi, Port Aransas | Live music, beaches, cultural sites |
| Utah | Park City, Zion | Ski resorts, national parks |
| Washington | Whidbey Island | Scenic landscapes, outdoor activities |
Here’s a detailed table summarizing each market listed by AvantStay, including information on annual visitors and short-term rental (STR) data:
| State | Market | Popularity Reasons | Annual Visitors | Short-Term Rental Data |
|---|---|---|---|---|
| Arizona | Scottsdale | Golf courses, luxury resorts, year-round warm climate | 9 million | 11,823 active listings, 54% occupancy, $384 average daily rate, $34,828 monthly revenue (AirDNA) (Short Term Rental Resource Center) |
| Arizona | Sedona | Red rock formations, outdoor activities, spiritual retreats | 3 million | High percentage of homes used for rental income, significant STR market (KJZZ) |
| California | Big Bear | Skiing, snowboarding, lake activities | 2.5 million | Popular for winter sports and summer lake activities (KJZZ) |
| California | Coachella Valley | Music festivals, desert landscapes, golf | 4 million | High demand during festival seasons, strong STR market (KJZZ) |
| California | Joshua Tree | National park, rock climbing, stargazing | 3 million | High demand for unique stays near the national park (KJZZ) |
| California | Lake Arrowhead | Mountain activities, lake recreation | 1 million | Popular for cabin rentals and outdoor activities (KJZZ) |
| California | Lake Tahoe | Skiing, lake activities | 15 million | Strong STR market, popular year-round destination (KJZZ) |
| California | Los Angeles | Beaches, entertainment industry, cultural attractions | 50 million | High demand for STRs in various neighborhoods (KJZZ) |
| California | Malibu | Beaches, luxury homes, celebrity sightings | 7 million | High-end STR market with significant revenue potential (KJZZ) |
| California | Newport Beach | Beaches, boating, upscale dining | 10 million | Strong STR market with high occupancy rates (KJZZ) |
| California | Palm Springs | Desert resorts, golf courses, mid-century modern architecture | 1.6 million | 6,300 active listings, 50% occupancy, $290 average daily rate, $23,000 monthly revenue (AirDNA) (Short Term Rental Resource Center) |
| California | Paso Robles | Wineries, hot springs, rural charm | 2 million | Popular for wine tourism, strong demand for unique stays (KJZZ) |
| California | San Diego | Beaches, zoo, naval base, cultural attractions | 35 million | High demand for coastal rentals, strong STR market (KJZZ) |
| California | Sonoma | Wineries, scenic landscapes | 10 million | High demand for rentals in wine country (KJZZ) |
| California | Temecula | Wineries, hot air ballooning | 3 million | Popular for wine tourism, growing STR market (KJZZ) |
| Colorado | Breckenridge | Skiing, mountain activities | 3 million | High demand for winter sports rentals, strong STR market (KJZZ) |
| Colorado | Telluride | Skiing, film festival, mountain activities | 0.5 million | Popular for luxury rentals, high occupancy rates during peak seasons (KJZZ) |
| Colorado | Vail | Skiing, mountain activities, luxury resorts | 1.3 million | High-end STR market with significant revenue potential (KJZZ) |
| Florida | Destin | Beaches, fishing, family-friendly activities | 4.5 million | Strong demand for beachfront rentals, high occupancy rates (KJZZ) |
| Florida | Emerald Coast – 30A | Scenic beaches, upscale communities | 4 million | High demand for vacation rentals along the coast (KJZZ) |
| Florida | Fort Lauderdale | Beaches, boating, nightlife | 13 million | High occupancy rates for beachfront and downtown rentals (KJZZ) |
| Florida | Fort Myers | Beaches, fishing, family-friendly activities | 6 million | Popular for vacation rentals, strong STR market (KJZZ) |
| Florida | Key West | Beaches, nightlife, historical sites | 2.5 million | High demand for unique island rentals, high occupancy rates (KJZZ) |
| Florida | Marco Island | Beaches, fishing, luxury resorts | 1 million | Popular for high-end vacation rentals (KJZZ) |
| Florida | Orlando | Theme parks, family-friendly activities | 75 million | One of the largest STR markets in the U.S., high occupancy rates (KJZZ) |
| Florida | Pensacola | Beaches, military base, historical sites | 2 million | Growing demand for coastal rentals (KJZZ) |
| Hawaii | Maui | Beaches, volcanoes, luxury resorts | 3 million | Strong STR market, high occupancy rates for vacation rentals (KJZZ) |
| Hawaii | Oahu | Beaches, Pearl Harbor, urban attractions | 6 million | High demand for vacation rentals, particularly in Honolulu (KJZZ) |
| Maryland | Chesapeake Bay | Boating, seafood, historical sites | 8 million | Growing demand for waterfront rentals (KJZZ) |
| Massachusetts | Berkshires | Outdoor activities, cultural venues, scenic views | 2.6 million | Popular for cabin and country home rentals (KJZZ) |
| Nevada | Lake Tahoe | Skiing, lake activities, casinos | 15 million | Strong STR market, popular year-round destination (KJZZ) |
| New York | Hudson Valley | Scenic landscapes, wineries, historical sites | 5 million | High demand for vacation rentals, particularly in historic homes (KJZZ) |
| North Carolina | Asheville | Mountains, arts scene, outdoor activities | 11 million | Popular for unique stays, strong STR market (KJZZ) |
| North Carolina | Lake Norman | Lake activities, outdoor recreation, proximity to Charlotte | 1 million | Growing demand for lakefront rentals (KJZZ) |
| Oregon | Central Oregon | Outdoor activities, natural beauty, breweries | 3 million | Strong demand for vacation rentals in Bend and surrounding areas (KJZZ) |
| Oregon | Oregon Coast | Scenic coastline, beaches, outdoor activities | 6 million | High demand for coastal rentals (KJZZ) |
| Pennsylvania | Poconos | Mountains, resorts, outdoor recreation | 26 million | Popular for cabin rentals, high occupancy rates during peak seasons (KJZZ) |
| South Carolina | Charleston | Historic sites, beaches, culinary scene | 7.4 million | Strong STR market, particularly in historic downtown (KJZZ) |
| South Carolina | Hilton Head | Beaches, golf courses, luxury resorts | 2.5 million | High demand for beachfront rentals (KJZZ) |
| South Carolina | Isle of Palms | Beaches, luxury homes, golf | 0.5 million | Growing demand for high-end vacation rentals (KJZZ) |
| Tennessee | Nashville | Music scene, cultural attractions, nightlife | 16 million | High demand for STRs, especially in downtown and surrounding neighborhoods (KJZZ) |
| Tennessee | Smoky Mountains | National park, outdoor activities | 12 million | Popular for cabin rentals, strong STR market (KJZZ) |
| Texas | Austin | Live music, cultural attractions, tech industry | 30 million | High demand for STRs, particularly during events like SXSW (KJZZ) |
| Texas | Corpus Christi | Beaches, fishing, cultural sites | 6 million | Growing demand for coastal rentals (KJZZ) |
| Texas | Port Aransas | Beaches, fishing, family-friendly activities | 1 million | Popular for vacation rentals, high occupancy rates (KJZZ) |
| Utah | Park City | Skiing, Sundance Film Festival, outdoor activities | 3 million | High demand for winter sports rentals, strong STR market (KJZZ) |
| Utah | Zion | National park, outdoor activities | 4.5 million | Growing demand for unique stays near the park (KJZZ) |
| Washington | Whidbey Island | Scenic landscapes, outdoor activities | 1 million | Popular for vacation rentals, particularly for weekend getaways (KJZZ) |
- Target High-Demand Markets:
- We focus acquisitions on popular tourist destinations with strong STR performance, such as coastal cities, ski resorts, and cultural hotspots.
- Conduct market analysis to identify emerging areas with high tourism growth potential.
- Identify Luxury Properties:
- We Seek out high-end vacation homes that can be positioned as luxury STRs.
- Look for properties with unique features, such as waterfront access, scenic views, or proximity to attractions.
- Leverage Value-Add Opportunities:
- Target properties needing renovation or improved management to enhance their value.
- Develop a renovation plan to maximize property appeal and rental income.
- Build Local Partnerships:
- Establish relationships with local developers, real estate agents, and property managers to source exclusive deals.
- We are also targeting land and lot acquisitions in these markets to develop luxury build to stay short term rentals
A note on the market data in the tables above
The listing counts, occupancy rates, average daily rates, and monthly revenue figures in the tables above were compiled in 2024 from third-party sources and are retained here as a snapshot of that period. They should not be used as current underwriting inputs. Short-term rental market data ages quickly, provider definitions of occupancy differ materially, and several of the markets listed have experienced regulatory changes since the tables were built. Build any live estimate from a matched comp set in the specific submarket instead, as described in RevPAN.
What are Investment Grade STR’s own acquisition criteria?
The criteria above describe how one operator screens for its portfolio. Ours differ because the objective differs: an operator is screening for properties that fit its management model, while an investor is screening for properties that finance, survive, and exit. A property qualifies as investment grade under our standard when it meets all of the following.
| Criterion | Standard |
|---|---|
| Revenue verification | Twelve months of platform payout statements, or underwritten as though no history exists |
| Long-term rental floor | Modeled with long-term expense assumptions; gap to the STR track quantified in dollars per month |
| Financing | Clears a lender floor on at least one track, with the lender income posture identified |
| Permit | Current, and transferable at sale, confirmed in writing with the issuing authority |
| Governing jurisdiction | City, county, and association rules all checked, including recorded covenants |
| Insurability | A real quote on the specific address for short-term rental use, with wind and flood positions stated |
| Hazard screen | FEMA National Risk Index reviewed with the driving hazard identified, not just the composite |
| Exit | Identifiable buyer pool that does not depend solely on other STR investors |
Why is yield not one of the criteria?
Because yield is an output rather than a screen, and the highest gross yields in the country are frequently found in markets that fail on regulatory settlement, insurability, or exit liquidity. Each of those failures appears at sale rather than during the hold, which is precisely why they are absent from the return figure that attracted the buyer. A property that clears the eight criteria above and produces a moderate yield is a better asset than one that produces a high yield and fails two of them. The full sequence is set out in how to analyze a short-term rental.