Why Bill Faeth says Don’t Invest in the Poconos

Bill Faeth is a seasoned entrepreneur, investor, and business coach based in Nashville, Tennessee. Bill is known for his ability to inspire and motivate audiences with his compelling entrepreneurial journey and practical insights. Bill was the keynote speaker at the first ever Poconos STR Conference in 2024.

In his January 2025 Bill Faeth Unfiltered podcast, in an episode called Where NOT to Invest in 2025, Bill Faeth advises against investing in the Poconos region for short-term rentals. He lists the Poconos as the second worse place, after THE ENTIRE STATE OF CALIFORNIA!

LET’S ADDRESS BILL’s CONCERNS ABOUT THE POCONOS. He identifies market saturation and inconsistent regulation, and lack of premium inventory increased as his primary concerns, which can lead to diminished returns for investors. Faeth emphasizes the importance of careful market selection and suggests that investors consider alternative locations with better growth potential and less competition. We couldn’t agree more.

Is Investing in the Poconos Worthwhile?

Supporting this perspective, local experts note that while tourism in the Poconos continues to grow, the influx of new short-term rental operators has heightened competition. This means that average properties in average conditions may no longer perform as well as they once did. To succeed in this market, investors need to offer exceptional or unique amenities to stand out. Both Faeth and local experts suggest that due to heightened competition in some sectors of the market, investing in the Poconos requires careful consideration and a strategy to differentiate these investment properties to achieve favorable returns. It is far from easy money, it requires work.

Is Bill Faeth Wrong About the Poconos?

When it comes to the Poconos, Bill is right about many things. Competition is strong, regulation is inconsistent and there is a lack of truly premium properties. HOWEVER, with 6,500 licensed STRs, the Poconos is a vibrant market that draws over 30 million visitors per year. Many come to the area and don’t pay to stay as the region has more than 25,000 vacation/second homes making it even harder to standout in a rental business.

When I got started in the STR business, an investor laughed when I said I sell vacation rental properties in the Poconos, he said: “Do you know what we call the Poconos? The poor man’s Smokies!” I thought to myself, yes, for the most part they are right, we might just be the most affordable vacation region in the Northeast. Bill is right about the lack of super properties in the Poconos, BUT there is a lot of opportunity in providing affordable vacations homes to the 47 million people that live within a 3-hour drive who are anxious to escape city life. Licensed STRs generate over $250 million in annual revenue and when the economy gets tight, value destinations rise. A down economy means an up year for tourism in the Poconos!

The Poconos is a market where you need to be active, not passive with your investments. You have to work for your money here, and you have to be savvy. We benefit because of proximity, so you can keep an eye on your contractors and properties, and you can be hands on. The Poconos is not a get rich quick place, but it is a place where you can win in at a modest level. In the Poconos, you can build wealth through real estate and do it practically, the old-fashioned way – you earn it.

Bill Faeth’s Investment Process:

• Thorough Market Research: Before investing, conduct comprehensive research to understand market dynamics, including supply and demand, local regulations, and economic trends.
• Diversification: Consider diversifying your investment portfolio across different markets to mitigate risks associated with any single area.
• Engage with Local Experts: Collaborate with local real estate professionals who have in-depth knowledge of the market to make informed investment decisions.

Key Takeaways of Where NOT to invest in 2025:

• 1. Market Saturation: Bill highlights that markets like the Poconos have become oversaturated with short-term rentals, leading to increased competition and reduced profitability for investors.
• 2. Regulatory Challenges: He points out that areas like the Poconos have implemented stringent regulations on short-term rentals, making it difficult for investors to operate legally and profitably.
• 3. Economic Factors: Bill advises against investing in regions with declining economic indicators, as these areas may not attract sufficient tourism or business travel to support short-term rental income.
• 4. Seasonal Limitations: He cautions about markets that are heavily seasonal, where demand for rentals is limited to specific times of the year, leading to inconsistent cash flow.
• 5. Dependence on a Single Industry: Bill warns against investing in areas reliant on a single industry (e.g., oil towns), as economic downturns in that sector can drastically affect rental demand.

Bill states the Poconos market is short of the “super properties” that he operates, so what is a super property? He defines a “Super Property” as a real estate asset meticulously tailored to cater to a specific buyer persona, optimizing return on investment (ROI). Contrary to common belief, creating a Super Property doesn’t always mean spending on grandiose features. Instead, it focuses on strategic enhancements that align with the preferences and expectations of the target market, the guest avatar

Yes, Bill coaches people to invest millions in properties, invent new destinations and take advantage of first mover advantage in a fresh market. If you are interested in chasing the dream of striking it rich with a Super Property then join Bill in his quest for big returns, quick riches and skip the Poconos.

But…if you want a market that consistently books, books strongly 7-11 months a year, gives you a chance to grow a portfolio of real estate that holds its value, while having a reliable stream of income, then roll up your sleeves and jump into the Poconos. The Poconos is a blue-collar market, a market that consistently delivers over the long run and offers opportunity for investors of all types.

The Poconos is a market where you need to be active, not passive with your investments. You have to work for your money here, and you have to be savvy. We benefit because of proximity, so you can keep an eye on your contractors and properties, and you can be hands on. The Poconos is not a get rich quick place, but it is a place where you can win in at a modest level. In the Poconos, you can build wealth through real estate and do it practically, the old-fashioned way – you earn it.

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