There are plenty of reasons to think about investing in a short-term rental property out of state. You may have just gone on a vacation and decided the people who own the place you are renting were making a killing.
You may have been considering buying rental properties and then started seeing the comparison of long-term vs. short-term rentals. Maybe you were thinking about buying a home you would like to retire into and can’t imagine how expensive they will be by then.
From a purely financial perspective, you will want to choose a market with strong rental demand, low demand for property, and good prospects for property price and rental demand growth.
It is crucial to accurately estimate what your expenses will be to make a sound investment decision. However, what expenses and what proportion they will take on can vary wildly from market to market and by property style.
Unlike expenses, it will be harder to project the revenue for a short-term rental. While you can get insurance quotes or calculate the property taxes after they reflect the new purchase price, you will not see a published number on what the revenue will be.