When investing in short term rentals, it is crucial to analyze the local market conditions and competition, including factors such as supply and demand, occupancy rates, and pricing trends. In addition, it is essential to thoroughly research the property's location, amenities, and potential for rental income. Understanding the regulations and laws related to short term rentals in the area is also important to avoid any legal issues or penalties. By taking a careful and diligent approach, investors can make informed decisions and increase their chances of success in the short term rental market.