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What is the scoop with Sedona short term rentals in 2021

Arizona

Sedona Short term rentals (STR) approximately appreciate more than 30% this year. That may seem inflated, but it’s actual a conservative figure. We may end up seeing 35% by the end of the year, based on a price boost that’s happening right now under our very noses.

Sedona STR cash flow is averaging 12% for those that have purchased this year. The typical range is 8% to 18% cash flow. My clients are seeing above average returns.  18% is the average cash flow for my clients, with a typical cash flow range of 15% to 21% from 2021 purchases.

Some of my clients with minor remodel projects are pushing their cash flow up to 25% to 30%. In fact there are two properties on the market at the time of this video that would net 25% or better cash flow. (Update on 12/15/2021: Congratulations Jeff E. & Andrea T. on grabbing hold of these fabulous properties)

Gross annual short term rental income should increase in 2022 by approximately 10% to 20%. Meaning, for clients that purchase property in 2021, their cash flow should be significantly increasing in 2022, based on local, national and international economic growth, and based on local tourism growth for 2022.

The 2022 home value appreciation on short term rental single family homes is forecasted around 35%. This is due to extremely limited for-sale inventory, and a very aggressive buyer pool.

We’re seeing lots of escalation clauses + multiple offers, cash and financing. STR single family homes see approximately 50% cash buyers. Non-STR single family homes see approx 33% cash buyers. There are some properties/listings that sit longer on the market. However, those are the properties that have issues/problems, or are simply overpriced.

It’s been an exciting real estate year for buyers and for sellers in 2021. The Sedona seller’s market is showing signs of strengthening- it’s not softening. And so you should expect multiple offers and fierce buyer competition if you come into the Sedona market looking to purchase.

If you have more questions, feel free to schedule a call. We can go over your specific needs, whether you’re buying or you’re selling.

We look forward to meeting with you and helping you out.

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Real Estate Agents In Sedona, Az

About Chad McMahan

Chad has lived in the Sedona area for over 30 years and been a Sedona realtor for almost 20 years. He is an active local investor and puts his money where his mouth is. Aside from his family, his passion is shared between investing and helping his clients build powerful real estate portfolios.

He specializes in:

1) Sedona luxury real estate

2) Sedona cash flow investments

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