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Short-term rentals (STRs) have become an increasingly popular way to invest in real estate. They offer the potential for high returns, but it's important to choose the right type of property. Not all properties are created equal when it comes to STRs.

Here are a few things to consider when choosing an STR property:

Location: This is the most important factor. The property should be in a desirable location that attracts tourists or business travelers. Consider factors like proximity to popular attractions, walkability, and access to public transportation.

Type of property: Some types of properties are better suited for STRs than others. Single-family homes, condos, and apartments can all be successful STRs, but it's important to consider the size, layout, and amenities of the property. For example, a small studio apartment may not be as appealing to guests as a larger home with a pool.

Regulations: Be sure to check the local regulations for STRs. Some areas have restrictions on short-term rentals, so it's important to make sure you're compliant before you invest.

Once you've considered these factors, here are a few specific types of properties that can be profitable for STRs:

Vacation rentals: These are properties located in popular vacation destinations, such as beaches, mountains, or ski resorts. Vacation rentals can be very profitable, but they also tend to be seasonal.

City rentals: These are properties located in major cities. City rentals can be a good option for investors who want a more consistent income stream, as they are less seasonal than vacation rentals.

Unique properties: Properties with unique features, such as a pool, hot tub, or pet-friendly amenities, can be more profitable than standard properties.

No matter what type of property you choose, it's important to do your research and make sure you're investing in a profitable market. There are a number of resources available to help you do this, such as AirDNA and Mashvisor.

Here are a few additional tips for success with STRs:

• Price your property competitively.
• Provide excellent customer service.
• Maintain your property in good condition.
• Use a professional property manager if you need help.

With careful planning and execution, STRs can be a great way to build wealth and passive income.