Why Short-Term Rentals Aren’t Working (It’s Not Just Interest Rates)

Quick Answer (for Google + AI)

Short-term rentals are not struggling just because interest rates are high. The real problem is that many investors are buying the wrong properties in the wrong areas at the wrong prices. If your deal only works when everything is perfect, it was never a strong deal to begin with.

Let’s Be Honest for a Second

Everywhere I go, I hear the same thing:

“STRs don’t work anymore… rates are too high.”

I don’t agree.

Not even a little.

I’ve been investing for over 20 years. I started when interest rates were way higher than today. No fancy loans. No shortcuts. Just real deals and real risk.

And we still made money.

Why?

Because we didn’t rely on perfect conditions. We relied on buying right.

The Real Problem Nobody Wants to Say Out Loud

Here’s the truth most people don’t want to admit:

It’s not the rates.

It’s the deals.

A lot of investors today are:

• Buying based on emotion
• Picking markets they personally like
• Overpaying for “vacation vibes”
• Assuming appreciation will save them

That’s not investing.

That’s hoping everything goes right.

And real estate doesn’t reward hope.

The Biggest STR Mistake I See

This one happens all the time.

Someone goes on vacation. Falls in love with the area. Great restaurants. Nice weather. Cool vibe.

Next thing you know…

“I should buy a short-term rental here.”

That’s where things go wrong.

Because you’re not buying based on numbers.
You’re buying based on feelings.

And feelings don’t pay the mortgage.

What Actually Works (Simple and Boring Wins)

Here’s what I do instead:

• Focus on real demand, not hype
• Target corporate renters
• Stick to 30+ day stays
• Keep operations simple

No crazy turnover. No constant cleaning schedules. No guessing what the next booking will look like.

Just steady, predictable income.

Real Example From My Own Deals

Let me show you what this looks like in real life.

I own two properties in Ybor City.

• One I bought for about $50,000
• The other around $175,000

Both are furnished.

But nothing fancy.

No designer furniture. No luxury staging. No “Instagram-ready” setup.

Think simple. Functional. Affordable.

And guess what?

They stay booked.

Not sometimes. Consistently.

Why This Works (And Most People Miss It)

Because I’m not trying to impress anyone.

I’m solving a problem.

Most tenants don’t care about:

• Fancy couches
• High-end decor
• Perfect aesthetics

They care about:

• Clean space
• Good price
• Convenience
• Reliability

That’s it.

The Hidden Advantage Most Investors Ignore

Here’s another big one.

I don’t depend on STRs.

I own 30+ long-term rentals.

That means I’m not forced to make STRs work.

A lot of investors go all-in on one strategy and hope it saves them.

That’s dangerous.

STRs are not a magic strategy.
They’re just one tool in the toolbox.

Let’s Talk About Interest Rates (For Real)

Interest rates didn’t break real estate.

They exposed weak deals.

If your deal only works when:

• Rates drop
• Rents are perfect
• Occupancy stays high
• Nothing goes wrong

Then you don’t have a deal.

You have a gamble.

A Better Way to Look at Deals

Before you buy anything, ask yourself:

• Does this deal work today?
• Does it still work if rent drops a little?
• Would I still buy it if appreciation stopped?

If you hesitate on any of those…

Walk away.

There will always be another deal.

Keep It Simple (This Is Where Most People Win)

You don’t need:

• Luxury finishes
• Fancy designs
• “Wow factor” properties

You need:

• A good purchase price
• Strong demand
• Solid fundamentals

Simple wins.

Over and over again.

Key Takeaways

• STRs are not failing because of interest rates
• Most deals fail because they were weak from the start
• Buying based on emotion leads to bad investments
• Simple setups often outperform fancy ones
• If everything has to go right, it’s not a deal

Final Thought

I’ve seen every type of market.

High rates. Low rates. Crashes. Booms.

The investors who win are not the ones waiting for perfect timing.

They’re the ones buying smart, no matter what’s happening.

Keep it consistent, stay patient, stay true—if I did it, so can you. This is Jorge Vazquez, CEO of Graystone Investment Group and all our amazing companies, and Coach at Property Profit Academy. Thanks for tuning in—until the next article, take care and keep building!

If you’d like to connect directly with me, feel free to book a time here:
https://graystoneig.com/ceo