08 · SHORT-TERM RENTAL
The STR path.
Sometimes hold-and-rent at premium STR rates beats sale-and-redeploy. Here's the math.
The estimate.
| Metric | Low | Median | High |
|---|---|---|---|
| Nightly rate | $525 | $685 | $850 |
| Occupancy | 62% | 62% | 62% |
| Annual gross | $118,800 | $155,000 | $192,300 |
| Annual NET | $56,000 | $92,000 | $129,000 |
Setup: $35K one-time. Furnishing, photography, listings, smart-lock, linens, onboarding.
Sale vs LTR vs STR.
| Path | One-time | Annual NET | Yield |
|---|---|---|---|
| Sale at Strategic | $1.078M net | — | — |
| LTR ($6,500/mo) | — | $58,000 | 4.07% |
| STR (Casa Grande Stays) | — | $92,000 | 6.46% |
Breakeven STR-vs-sale: ~14 years at 5% alternative return. At 4% appreciation, breakeven moves to year 9.
CASA GRANDE STAYS · OUR STR CO-OP PARTNER
The STR operators we hand the keys to.
Our STR co-op partner handles every short-term rental in our world. We don't operate STRs in-house. They've built a tighter operation here than anyone else.
- Listings across Airbnb, VRBO, and their own direct site.
- Pricing engine with seasonal and event layering.
- Guest screening, check-in, cleaning, turnover (own crews).
- Same-day maintenance triage.
- Monthly P&L, quarterly tax-prep package.
Fee: 22.5% of gross. No setup fee through us.
Intro to our STR co-op partner →Why this home works for STR.
Single-story. Six bedrooms. Pool plus ramada. Detached guest house for the over-occupancy group. Owned solar quiets the utility bill on heavy AC months. Five minutes to Sabino Canyon, the single biggest STR amenity in the Foothills.
The §121 timing matters: a short conversion (list STR for 12 months, then sell) preserves the exclusion. Anything longer compromises it. §121 brief →
Permits & HOA.
- City of Tucson: Type 1 STR permit. Annual renewal.
- Pima County: business license.
- HOA: none. CC&Rs only (recorded plat).
- Insurance: STR rider. Our co-op partner carries $2M liability.
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