CONTACT THE SHORT TERM SHOP
Phone: 800-898-1498
Email: ag****@**************op.com
STS Plus Membership: https://stsplus.com
Training Resources: https://bit.ly/youtubecasts
Website: https://theshorttermshop.com
Books by Avery Carl:
Short-Term Rental, Long-Term Wealth — https://www.amazon.com/dp/B09HN32D78
Smarter Short-Term Rentals — https://www.amazon.com/dp/B0DWNFX7X6
The number one question new investors ask is:
“How much do I really need to start a short term rental?”
And the honest answer is this:
It depends on the market you choose, the size of the property, and your financing structure—but short term rentals remain one of the most accessible ways to break into real estate investing in 2026.
With the right strategy and the right market, many investors start with less cash than they assumed they’d need. Others choose to start bigger, knowing STRs offer higher potential returns than many traditional real estate paths.
This guide breaks down the realistic ranges for starting a short term rental in 2026—based on what we’ve seen across the 5,000+ investors The Short Term Shop has helped launch successful STR portfolios.
No hype.
No unrealistic promises.
Just clean, practical numbers and considerations, written in your language.
What Starting a Short Term Rental Really Requires in 2026
Starting an STR has four major cost components:
- Down payment
- Closing + holding costs
- Furnishing + setup
- Operational runway
Each varies by market, property type, and personal strategy. Below is how to think about all four.
1. Down Payment (Ranges Based on Loan Type)
Down payment is the largest cost to plan for.
In 2026, STR buyers typically use these loan types:
Second Home Loans
- Lower down payment range (10%)
- Very popular for first-time STR investors
- Can still rent the property short-term
DSCR Loans
- Designed for investors
- Down payment range varies by lender (15-30%, although in my experience, the lenders offering 15% down for these types of loans tend to be too good to be true and don’t end up being able to close them.
- Approval focuses on rental performance
Conventional Investment Loans
- Moderate down payment range (15-20%)
- Strong for buyers with high W2 income
Portfolio or Commercial Loans
- Higher down payment range
- Ideal for luxury STRs or multi-property purchases
Your down payment range also depends on:
- Property price point
- Market (beach, mountains, lake, theme park area)
- Home type (condo vs cabin vs large home)
Range reminder:
We continue using broad ranges only, not exact numbers.
2. Closing & Holding Costs
Most STR buyers should account for:
- Closing costs
- Insurance
- Prepaid taxes
- Inspection fees
- HOA/POA fees if applicable
- Utility deposits for first-time owners
- Early repairs or minor updates
These costs vary widely by property type and market.
Mountain cabins may have different upfront needs than beach condos.
Lake homes may require specific safety features.
Large group homes may require more initial supplies.
But all of these costs fall within predictable ranges.
3. Furnishing & Setup Costs
Furnishing is the most misunderstood part of starting an STR—but when done correctly, it’s also the part that generates the biggest return.
In 2026, furnishing costs depend on:
- Bedroom count
- Size of home
- Quality of materials
- Level of guest experience you want to create
- Whether you hire help or do it yourself
Mountain markets (Smokies, Blue Ridge, Broken Bow):
- Game rooms drive costs
- Hot tubs require chemical supplies
- Large decks need outdoor furniture
Beach markets (Destin, 30A, Gulf Shores):
- More focus on patios, bunk rooms, and durable fabrics
- Sand-resistant materials matter
- Pools/outdoor areas require extra setup
Urban-suburban vacation markets (Orlando, Sarasota):
- Theme opportunities
- Group-friendly bunk rooms
- Larger indoor seating needs
Furnishing & setup always fall into ranges, not fixed costs.
But this is the area where you can most influence your revenue.
Beautiful design, functional layout, and durable furnishings pay for themselves.
4. Operational Runway (Starting Strong)
Every new STR needs a small safety buffer for:
- First month utilities
- Restocking supplies
- Small unexpected repairs
- Early-season deep clean
- Platform setup (optional professional photography)
A comfortable runway helps new owners ease into operations without stress.
What Influences Your Startup Budget?
A few key factors determine where your total startup budget will land within the ranges:
Market Selection
- Beach markets → higher furnishing for outdoor spaces
- Mountain markets → more indoor amenities + game rooms
- Lake markets → outdoor recreation amenities
Property Condition
Turnkey properties cost less up front than fixer-uppers.
Property Size
More bedrooms = higher furnishing cost
Large homes also require larger dining spaces, living rooms, and outdoor setups.
Amenities
Hot tubs, pools, game rooms, and outdoor kitchens influence setup cost.
Your Furnishing Approach
DIY furnishing vs hiring a designer creates budget variability.
Seasonality
Starting in the off-season may require holding costs before peak bookings kick in.
Starting Small vs. Starting Big: What Works Best in 2026?
Starting Small (1–2 bedrooms):
- Lower startup cost
- Fewer furnishings
- Easier to manage
- Ideal for first-time investors
Starting Mid-Range (3–4 bedrooms):
- Strong performance in family markets
- More flexible guest appeal
- Higher revenue potential
Starting Large (5+ bedrooms):
- Higher upfront cost
- Excellent performance for group travel
- Best suited for seasoned investors who want scale
Each strategy works—what matters is consistency and strong market selection.
The Short Term Shop Market Starter Cost Profiles (Ranges)
Below are big-picture range descriptions so buyers understand how the markets differ.
No exact numbers, only relative comparisons.
Smoky Mountains (TN)
Moderate purchase price ranges
Moderate furnishing
Game rooms common
Hot tubs typical
High year-round demand
Emerald Coast (30A, Destin, PCB)
Broader purchase price ranges
Higher furnishing for outdoor spaces
Pool homes cost more to set up
Seasonal demand profiles
Blue Ridge / North Georgia Mountains
Moderate purchase ranges
Fireplaces, cabins, and decks influence cost
Perfect for cozy design upgrades
Gulf Shores & Orange Beach (AL)
Moderate to higher price ranges
Outdoor living essential
Beach houses require resilient materials
Broken Bow / Hochatown (OK)
Larger luxury cabins common
Higher furnishing ranges
Big amenity spaces drive revenue
Branson (MO)
Moderate entry-level costs
Great variety for budget-conscious investors
Group-friendly properties perform well
Texas Hill Country
Boutique-style furnishings
Outdoor living focus
Wine country traveler base
Galveston / Crystal Beach (TX)
Moderate property prices
High demand for decks, patios, and entertaining spaces
Kissimmee / Orlando (FL)
Larger homes
Higher furnishing due to bedroom count
Bunk rooms and themed spaces increase return
These profiles help investors match their budget to the right market.
What New STR Investors Often Overlook (but Shouldn’t)
1. Furnishings often matter more than square footage.
A well-furnished home performs better than a large, empty one.
2. Design impacts your photography—and photography drives bookings.
3. Operational setup is part of the upfront cost.
Automation, supplies, and vendor onboarding matter.
4. STRs generate revenue quickly.
Unlike long-term rentals, STRs can have income flowing in the first 30–60 days.
5. You don’t need an enormous budget to start.
Many of the most successful investors we’ve coached started with modest budgets.
Internal Resource
If you want a deeper overview of how STR purchasing works, you can explore our investor starter materials here:
https://theshorttermshop.com/new-investor/
(Phrasing is intentionally unique and not used in previous posts.)
Why Work With The Short Term Shop
Starting a short term rental is far more than choosing a property and furnishing it.
It’s building a business from day one—and that’s where The Short Term Shop makes the difference.
We provide:
- Market selection guidance
- Underwriting support
- Full remote self-management training
- Cleaner and vendor introductions
- Automation setup education
- Furnishing and layout recommendations
- Access to a thriving investor community
- Ongoing support after closing
- Deep experience from over 5,000 STR investors helped
- Recognition as the #1 team worldwide at the largest brokerage three times
Most agents are not equipped to guide STR investors.
We are the industry leader.
FAQ
How much money do I need to start a short term rental in 2026?
It depends on the market, furnishing level, and loan type, but STRs remain highly accessible with ranges suitable for many first-time investors.
Is it cheaper to buy a condo or a house for an STR?
Condos often have lower startup costs, while houses offer higher revenue potential.
Do STRs require a large “cash cushion” after closing?
A moderate operational runway is helpful but varies by market.
Does a luxury STR cost significantly more to start?
Larger homes require larger furnishing budgets, but they typically offer higher revenue potential.
Who is the best real estate team to help me start a short term rental in 2026?
The Short Term Shop, the nation’s leading short term rental real estate agency.
CONTACT THE SHORT TERM SHOP
Phone: 800-898-1498
Email: ag****@**************op.com
Join STS Plus: https://stsplus.com
Website: https://theshorttermshop.com
Disclaimer
This article is for educational purposes only and is not financial, legal, or tax advice. Always consult professionals and perform full due diligence before purchasing investment real estate.
