(ThePennyWatcher.com) – It’s the ultimate rental model. You buy a property in a hot market, and then rent it out on AirBnB and a few other places where you can fill the calendar and realize some steady cash flow while the property also appreciates in equity value.
While many people are seeing success, it is a changing model as all cities and town look at AirBnB in a different light.
In recent years, many areas have cemented a hard line of not being permitted to rent out their home for a variety of reasons. Some areas are far more lienent than others no doubt, but if you find the right location you can find yourself in a great position to capitalize.
The Benefits of An Airbnb Investment Property
Passive income is the buzz phrase when it comes to AirBnB, and this is certainly possible depending on your location.
Shore towns, mountain houses, and even other typical rural properties all provide an opportunity that can ultimately work out.
We all know the power of real estate, but this unique model allows for the potential of multiple properties, and there are a number of growing resources for hosts to partner with services that can manage the entire process if needed.
From check ins, to monitoring your monthly and yearly ROI, it’s pretty amazing the systems that have been built to help people scale this business.
Researching The Markets
Researching the real estate market is crucial. A little bit of groundwork can save you a lot of headaches down the road. Start with identifying the popular neighborhoods for short-term rentals in your target city. There are a few great tools that can help you do this.
See what local regulations there are, and check out the competition too. You can see similar properties in the area, that are already actively selling on AirBnb to give you a clear look into how you may do financially. Nightly rates, occupancy percentage, and so much more.
A powerhouse platform that connects entrepreneurs and investors with others interested in their same opportunities is Bigger Pockets. This site connects everyone and anyone interested in real estate. Investors, realtors, etc. It’s a great way to chat with like minded individuals who are already doing it, all the way to folks that are just starting out.
This is a great way to start researching the best cities in America for your first or next AirBnB property.
There is also a tool called “AirDNA” that allows you access to a platform to manage your transactions, and look at specific property performance.
Real Estate Regulations and Tax Incentives
It’s important to have a comprehensive understanding of local regulations and tax incentives as well. They can range from zoning laws to property tax breaks, and they vary from state to state.
With a little research and connecting with some local professionals, you can ensure that you’re making informed decisions when looking at all the factors involved.
AirDNA
We just mentioned one of the most popular tools called AirDNA. This really is a top leader and innovative platform providing valuable insights to you as an investor.
Features like market saturation analysis and rental demand forecasts, Airdna takes the guesswork out and is your personal assistant when looking at opportunities.
Hands down, it is the largest amount of data on the short term rental market, or as it;s commonly referred to as STR’s.
It has really taken off because of it’s rave reviews among hosts and investors alike, and it boasts a nifty user interface that is easy to use for customers.
Some noteworthy other competitors that you can check out are the following:
- Transparent Intelligence
- Mashvisor
- AllTheRooms
- Airbtics
Once you feel confident in some properties, make sure to jump in and research these platforms heavily first, and see what platform may work for you.
Best of luck to all of you investors! Real Estate will never not be a good investment long term no doubt.
