How We Built a 14% Return STR in Virginia’s Massanutten Resort Market

When my wife, Amber, and I first decided to branch out from our long-term and multifamily rental portfolio, we knew short-term rentals (STRs) were the next logical step. What we didn’t expect was that our first STR, a mountain getaway in Massanutten, Virginia, would outperform many of our other assets in its very first year.

The Property: Stone’s Throw Retreat

Welcome to Stone’s Throw Retreat, a designer-decorated, six-bedroom, four-bath home that sleeps up to 16 guests. Located directly across from Painter’s Pond in the heart of Massanutten Resort, the property combines rustic charm with modern comfort. Guests love the brand-new hot tub, cedar barrel sauna, outdoor TV, and fire table area with seating for 10. Inside, the vaulted ceilings, sunroom, and game room with eight total TVs create the perfect balance of luxury and fun. It’s also pet-friendly, which gives us an edge during shoulder months.        

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Why Massanutten, Virginia

We were drawn to Massanutten for its year-round visitor appeal. The area attracts skiers and snowboarders in the winter, and families, golfers, and hikers in the summer. It’s just 20 minutes from Shenandoah National Park and 10 minutes from Harrisonburg — home to James Madison University — which means a steady stream of visitors for concerts, graduations, and events. At the market level, Massanutten has around 330 active STR listings, with average daily rates (ADR) around $355/night, occupancy near 36%, and annual revenue growth of 29%. It’s a competitive but fast-growing market, and we saw that as an opportunity to differentiate with design, amenities, and guest experience.

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The Numbers: From Startup to Strong Cash Flow

Total Revenue: $124,321.74

Operating Expenses: $54,275.55

Net Operating Income (NOI): $70,046.19

Debt Service (Mortgage + HELOC): $43,619.07

Cash Flow After Debt: $26,427.12

Total Cash Invested: $255,334.44

Annualized Cash-on-Cash Return: 13.9%

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Our Strategy

From day one, Amber and I treated this STR like a business. We partnered with a professional local property manager, focused on luxury design, and invested heavily in amenities that create memorable guest experiences — the hot tub, sauna, and game room being top performers. Dynamic pricing tools help us stay competitive year-round.

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Lessons Learned for STR Investors

1. Invest in amenities that tell a story — they photograph well and justify higher rates.

2. Track your numbers like an operator, not a hobbyist.

3. Plan for seasonality — Massanutten has clear peaks and dips.

4. Work as a team — we made every decision together, and that made all the difference.

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About Us

Michael and Amber Cook are real estate investors based in Virginia. Together, they manage a growing portfolio of long-term rentals, multifamily properties, and a private real estate fund. Stone’s Throw Retreat in Massanutten marks their first short-term rental venture — a project they built and managed hand in hand, blending their investment strategy with a shared passion for hospitality.