Airbnb properties for sale

Best Airbnb states to invest in 2023

Best Airbnb cities to invest in 2023

Best Airbnb neighborhoods to invest in 2023

Airbnb has become a household name in the vacation rental market, providing travelers with unique, cost-effective alternatives to traditional hotel stays.

However, some investors are now looking at the platform as a source of income by purchasing Airbnb properties for sale in the United States.

In this article, we will explore the various types of Airbnb properties, high in demand property types, popular amenities, sale price trends, and how much you can make on Airbnb. Additionally, we will discuss how to buy an Airbnb property and start your Airbnb business.

listing properties

Types of Airbnb properties

When it comes to vacation rentals, you have different options to choose from. Here are the most common Airbnb property types that you will find in listings:

Entire Property

Generally, entire properties get the most bookings online as it gives guests the privacy of having an entire place all to themselves at very affordable prices. They are generally on par with most hotels when it comes to nightly rates but are double or triple the size of a hotel room.

As of January 2023, the average nightly rate for a US hotel is $212. That’s about a 54% year-over-year increase. On the other hand, a 3-bedroom Los Angeles property listed on Airbnb goes for about the same rate. Of course, nightly Airbnb rates vary per location, but you get the idea.These types of properties are best for folks who are looking for a cozy and comfortable homey retreat away from home.

Private Rooms

Private rooms do very well because they offer more privacy compared to shared room rentals. Guests may share communal space with their host but they get a bedroom all to themselves.One thing about private rooms is they are a lot cheaper compared to booking an entire property. As a rental property investor, this is something that you will want to consider. You may have a single-family home that you may wish to rent out per room. That might get you a little more than what a single-family unit can get you as a rental property. But the downside is you will have to constantly fill out each room to fully optimize the property’s income-generating potential.

Shared Rooms

Shared rooms are another affordable option for travelers and guests on a tight budget. This property type gives them a place to crash into that they can share with another person. That means they also get to split the cost of nightly rates. As a rental property owner, one point of concern other than making sure your occupancy rate is high is that your transition rates are also high. This means that you get to deal with more guests than the average Airbnb host. If you’re not the type of person who likes to deal with plenty of people at a given time, a shared-room rental may not be the best option for you.

High in demand Airbnb property types in US

Before you set out to look for an Airbnb for sale, you must first consider what types of property generate a higher demand on the platform.

Some property types seem to attract more inquiries and bookings than others, so it is best to know what these properties are to give you higher occupancy rates.

1. Full-Apartment Rentals

Full-apartment rentals, such as multi-family properties, are big on Airbnb. They’re not too cramped like a condo and not too big like a full-sized 3- or 4-bedroom house.

Property Image

For this reason, many investors are buying multi-family properties for a bigger revenue. Some owners take one unit as their primary residence and have the others listed on Airbnb. Others, on the other hand, simply just rent out each apartment as an individual Airbnb rental.

2. Condos

Generally, condos are also quite popular on the Airbnb platform. As rental properties, they provide solo and couple travelers enough space to get comfortable during their stay.However, certain downsides also come with Airbnb condos. Other than the limited space offered by condos, HOAs and building management teams aren’t too keen having condos in their area as short term rentals. This is mainly due to security, noise, and maintenance issues.You’ll fare better with larger properties, such as a 3- or 4-bedroom property with at least two bathrooms, especially those that aren’t under any HOAs.

3. Luxury Properties

This one is somehow a bit of a hit-or-miss, but if you get a high-end property in a really good location, you’re good to go. Some of these properties bring in around a quarter of a million dollars in a single year as short term rentals. The price tag and a bad economy are the main complicators with these property types. However, if things are going well with the economy and you make several hundred thousand dollars annually on a million-dollar property, it still makes plenty of sense.Of course, several other property types are also in high demand. However, before you go off buying Airbnb cabins for sale or Airbnb condos for sale, you need to identify your target market first, especially for non-traditional properties.


Popular amenities for Airbnb properties

Guests often look for different things when choosing which Airbnb rental to book. Each of them has a different set of criteria they use to filter their online search. However, there are a few things that stand out as the most popular amenities guests want in an Airbnb property. It has been found that guests often look for properties that have the following:

1. A Pool

Having an entire property with a pool all to yourself is bliss. It sure beats paying exorbitant resort rates. Even if the guest is sharing the property with others, a pool on-site makes for a pleasant overall experience, especially for guests with families or groups of friends.

2. Fast and Stable Internet Connection

Since we’re living in a digital world, almost everyone is dependent on a stable internet connection to get a lot of everyday stuff done. This is especially true for remote workers or those on a business trip. A fast and stable internet connection allows them to have a stress-free travel experience.

3. Kitchen

Private rooms or small studios with kitchenettes are more in demand compared to those that have no kitchen at all. Having a kitchen gives guests the flexibility to stay indoors and prepare their own food instead of always going out to eat or ordering take-out.

Sale price trends for Airbnb properties

2023 is expected to make aspiring and experienced Airbnb hosts work harder than they never did before. The past couple of years saw hosts operate on auto-pilot, but 2023 is poised to usher in a more competitive landscape for Airbnb owners and hosts.

Since most real estate markets have cooled and housing inventory has gone up in a lot of places, property prices have either slowed their appreciation rates or have gone down in value.

According to Mashvisor, in March 2022, the state-level median property price in the US was $555,856. By March 2023, the median property price in the US went down to $479,651. That’s a huge 14.72% year-over-year drop.

Expect property prices for Airbnb homes to be more within reach as supply goes up some more. That said, experts are predicting that homeowners might slash prices to remain competitive in their local markets.


How much can you make on Airbnb?

This is a tricky question to answer because it all depends on several factors, including the property’s location, the type of property, and the nightly rates, among others.

According to Mashvisor’s March 2023 short-term rental data, the median monthly rental income and cash on cash return on Airbnb properties in the US are $2,901 and 3.43%, respectively. Not bad, if you think about it.

As far as nightly rates are concerned, the same data source tells us that the median nightly rate for Airbnb is $189. However, you won’t get these numbers everywhere in the US. Especially in states and counties where strict short-term rental rules and regulations are enforced.

Generally, investing in Airbnb is quite promising. A property with high profit potential would meet both of these requirements:

- A minimum monthly rental income of $2,000
- Cash on cash return that doesn’t go below 10%

How to buy Airbnb property: 10 key steps

Determine your budget and financing options

Research the local real estate market

Find a reputable real estate agent

Choose the right location for your property

Consider the type of property that will attract the most bookings

Analyze the competition in the area

Inspect the property and ensure it meets Airbnb standards

Negotiate the price of the property

Secure financing and close the deal

Furnish the property and start marketing your listing


How to Start an Airbnb Business

If you’re serious about starting an Airbnb business but don’t know where to start, here is a step-by-step guide:

Step 1: Decide on a Budget

Let’s face it, you can’t get into Airbnb without shelling out some cash. As they say, you need money to make money.

Starting an Airbnb business will require you to set aside some money to buy an investment property. Gather information about all the expenses and costs associated with buying a property and starting a vacation rental business.

You have to be brutally honest with yourself regarding your financial situation. While optimism will somehow get you through the challenging times, you need to be realistic about your finances, so set a budget and stick to it as much as possible.
If you need to get a loan, do your research first so you can get the best possible mortgage deal in the area.

Step 2: Find the Best Airbnb Rental Market That Best Suits Your Situation

As an investor, you need to know what you want to get from your investment. You will also need to set standards for the investment property you’re going to buy. Find a good market that will meet your standards and offer you the most promising revenues.

Step 3: Study the Local Airbnb Laws and Regulations

One thing about Airbnb rentals is that, while they are quite popular alternatives to expensive hotels and resorts, they also aren’t as well received in many locations. A lot of places, like NYC and Las Vegas, have very strict rules on Airbnb and other similar vacation rental properties. Make sure you take the time to research the short term rental rules and regulations in your location of choice before going all-in.

Step 4: Look for the Best Deals on Investment Properties

Ideally, when you look for an Airbnb property to buy, you should make sure that you see how it stacks up against other similar rentals in the area. These comparable properties will give you a good idea of what a good price tag is for the property you’re considering. They also give you an overview of what your income would be like if you were to push through with your plans.

Step 5: Do Your Due Diligence

Do your homework. We cannot emphasize enough how important due diligence is in real estate investing. Especially when you’re about to start a vacation rental business. Do your research on the Airbnb market in your selected location. Gather as much information and market data as you can. Find out details about the neighborhood and the property you’re interested in. Be familiar with past and current market trends in the area. Talk to other investors and real estate professionals for more insight. Research, research, research.

Step 6: Buy the Property

Once you’re done with your homework and you’re happy with the results, make an offer on the property and close the deal. Don’t be afraid to negotiate. In many cases, motivated sellers are more likely to lower their asking price, especially if you’re a serious buyer.

Step 7: Repairs and Updates

You closed the deal and you were handed the keys. Congratulations! Now it’s time to get some serious work done. Before you can even have the property rented out as an Airbnb home, you need to make sure that it is in an excellent rentable state that will give other similar properties a run for their money. Home inspections before the purchase should already give you a clear idea of the repairs and updates that need to be done. Just don’t overdo it. Get enough done so you can get a good occupancy rate and set decent nightly rates that will generate a positive cash flow for you.

Step 8: Create a Listing for the Property on Airbnb

Once you’re finished sprucing your property up, it’s time to get it listed. Go to Airbnb’s website to register as a host. We highly recommend investing in high-quality, professional-grade photos of the property. This will help your listing get more clicks. We also recommend writing out a detailed description of the property and what you have to offer so guests have a pretty good idea of what to expect. You also need to figure out a reasonable nightly rate for your property that will allow you to cover all of your monthly expenses and still have a decent profit. You can always use Mashvisor’s Dynamic Pricing tool to help you with your pricing. A well-written listing coupled with excellent pics tends to attract more inquiries and bookings.

Step 9: Develop a Marketing Plan for Your Airbnb Rental

No matter how great your listing is and how lovely the property is, if you don’t have a good marketing plan behind it, you might end up not getting what you expected at all. You need to develop a solid marketing plan that will give your Airbnb rental greater online visibility. Keep in mind that Airbnb is an online vacation rental platform. You need to widen your online reach by establishing a good online presence. A good marketing strategy does that for you.

Step 10: Start Entertaining Guests

Finally, you can now start entertaining guests. Communication is a big part of your role as an Airbnb host. Reply to emails and messages as promptly as you can. Commit to making their stay as pleasant as possible. Be available for any immediate concerns. If you have a 9-to-5 and can’t respond to queries and concerns immediately, you can either set up an automated response or hire a property manager to help you run your business. At the end of the day, doing things the right way will help increase your chances of success with your Airbnb rental. While buying an existing Airbnb business for sale is an easier, albeit slightly more expensive, way to get started, starting from scratch the right way is rewarding in so many ways. We wish you the best of luck in your endeavor!