Airbnb RentalsInvestment StrategiesThe 2 Best States to Invest in Real Estate for High Airbnb Cash on Cash Return in 2018 by Ranah Asad September 8, 2018January 27, 2019 by Ranah Asad September 8, 2018January 27, 2019When investing in real estate, property investors have two main options to choose from. They can either invest in long-term rentals (traditional rentals) or short-term rentals (Airbnb rentals). Each rental strategy depends on a number of factors. The location you want to invest in, whether or not you can manage the property alone, and the laws and regulations in your local real estate market all affect the profitability of your chosen rental strategy.If you do decide on investing in Airbnb rentals, then knowing where to invest is crucial. Before we list the best states to invest in real estate for Airbnb rentals, we need to talk about what determines the profitability of Airbnb properties.Related: Top 9 Most Profitable Airbnb Locations with Double-Digit Cash on Cash ReturnWhat makes an Airbnb location profitable?Making money in real estate is the ultimate goal for every real estate investor, regardless of their chosen rental strategy. There are numerous ways to measure the profitability of real estate investing. Some real estate investing metrics that are used to measure profitability are the cap rate and cash on cash return. While cap rate is a very important metric in real estate, our main focus today will be on the best states to invest in real estate for high Airbnb cash on cash return.Cash on cash return is used to measure the return on investment that a certain property is expected to make. Unlike cap rate, cash on cash return takes into consideration the method of financing used to purchase the investment property. So what makes an Airbnb location profitable? High cash on cash return!The best states to invest in real estate for high Airbnb cash on cash return: TexasPresident George W. Bush once named it as “The Promised Land” and he was right with that description because that’s exactly what Texas is. Everyone wants to move to Texas for various reasons and real estate investors are diving into the Texas real estate market because it is definitely one of the best states to invest in real estate for both rental strategies. However, here is why Texas is great for investing in Airbnb rentals this year:Read Also: Where to Invest in Real Estate in the Texas Housing Market 20181. Increasing populationIt’s currently estimated that the population of Texas in 2018 is more than 28 million! Houston alone has a population of over 2.2 million people and is the 4th most populous city in America. Many state demographers estimate that the population of Texas will continue to see a rise for the coming years. So many people are moving to Texas due to the state’s thriving business culture, technology, education and many other things. This is the first reason why Texas is considered one of the best states to invest in real estate for 2018.2. Thriving real estate marketUnlike major states like California or New York, Texas has a lot of room to grow and develop. There are a lot of locations within the state available for developing new construction for residential properties. Every city in Texas has an inner-city neighborhood space that is vacant which can be used for building houses.Another reason behind Texas’ thriving real estate market is the booming and expanding trade. Travelers from around the country migrate to Texas because it’s home to the busiest port in the US for foreign trade. The port employs lots of workers and attracts numerous business people who need a place to stay, either temporarily or permanently. This is where real estate investors shine in Texas. You can either rent out a property or even sell investment properties. Both will have you generating profit in no time.3. High job growthSome of the best known big companies want to have their centers set up in Texas which is causing Texas’ job growth to skyrocket. Just recently, Amazon chose Houston to call home and the center is said to provide 1,000 new job opportunities in that area. This is giving the Texas real estate market a great boost towards becoming one of the best states to invest in real estate.4. Tourist attractionsWhy is Texas great for investing in Airbnb? Well for one, travel and tourism play a very large role in Texas’ economy. This state has so many tourist attractions that make it a “must visit state” on everyone’s list. Today, the state offers countless opportunities for leisure and business travelers. From picture-perfect attractive towns to enormous high-tech theme parks and museums, this state has all the cultural enrichment activities that anyone could dream of.Now that you have a sense of why the Texas real estate market is so hot this year, let’s take a closer look at the locations that make this state one of the best states to invest in real estate.NOTE: The data below was taken from Mashvisor’s rental property calculator. We’ve pulled out the best city for Airbnb rentals and even the best-performing neighborhoods in that city. With the use of our real estate investment tools, we gave you the best of the best!With a free Mashvisor account, you can look for investment properties in these locations now. Click here to use our Property Finder and find properties in a matter of minutes!Abilene, TexasCity stats:Median Home Price: $236,122Airbnb Rental Income: $2,927Airbnb Cash on Cash Return: 8.89%Airbnb Occupancy Rate: 45.1%Best-performing neighborhoods for high Airbnb Cash on Cash Return: 1. Elmwood, AbileneMedian Home Price: $162,989Airbnb Rental Income: $2,486Airbnb Cash on Cash Return: 9.48%Airbnb Occupancy Rate: 45.6% 2. Overplace, AbileneMedian Home Price: $116,958Airbnb Rental Income: $2,587Airbnb Cash on Cash Return: 9.83%Airbnb Occupancy Rate: 48% 3. Sayles Boulevard, AbileneMedian Home Price: $187,741Airbnb Rental Income: $3,297Airbnb Cash on Cash Return: 9.33%Airbnb Occupancy Rate: 46% 4. Abilene Heights, AbileneMedian Home Price: $266,450Airbnb Rental Income: $3,190Airbnb Cash on Cash Return: 7.29%Airbnb Occupancy Rate: 40.8%The best states to invest in real estate for high Airbnb cash on cash return: GeorgiaGeorgia is a rich and beautiful state that has a lot to offer that makes it one of the best states to invest in real estate. Georgia borders Florida, so planning a trip to the beach is easy. Georgia is known as a warm state with coastal plains and beautiful mountains. Here’s why the Georgia real estate market has many real estate investment opportunities for property investors.1. AffordabilityIn Georiga, real estate prices are among the lowest compared to its neighboring states such as Florida. You can find fully furnished apartments starting at under $30,000 which is a great opportunity for investors thinking about investing in short-term rentals.2. Constant increase in tourismThe number of tourists visiting the state of Georgia each year just keeps on growing and growing. Being home to the busiest airport, more than 100 million people visit the state every year. That’s great news for a real estate investor interested in renting out on Airbnb.3. High occupancy ratesThe number of tourists is increasing the state’s rental property occupancy rates. There are more people coming to the state than there are hotel rooms. This is a great opportunity for investors to invest in Airbnb rentals and start generating positive cash flow!Read Also: Best Cities for Airbnb Occupancy RatesNow let’s take a look at the locations that make Georgia one of the best states to invest in real estate for high Airbnb cash on cash return. Like Texas, we present you with the best city as well as the city’s best-performing neighborhoods. Keep in mind that all the data was taken from Mashvisor’s rental property calculator.Related: Mashvisor: The Best Rental Property Calculator You Could Ask For To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.Columbus, GeorgiaCity Stats:Median Home Price: $161,528Airbnb Rental Income: $2,312Airbnb Cash on Cash Return: 8.97%Airbnb Occupancy Rate: 50.28%Best-performing neighborhoods for high Airbnb Cash on Cash Return: 1. East Highlands, ColumbusMedian Home Price: $109,897Airbnb Rental Income: $2,041Airbnb Cash on Cash Return: 10.71%Airbnb Occupancy Rate: 50% 2. Averett Woods, ColumbusMedian Home Price: $237,000Airbnb Rental Income: $3,663Airbnb Cash on Cash Return: 9.91%Airbnb Occupancy Rate: 48.7% 3. Hilton Heights, ColumbusMedian Home Price: $113,731Airbnb Rental Income: $2,217Airbnb Cash on Cash Return: 9.57%Airbnb Occupancy Rate: 52.5% 4. Wecoba St. Elmo’s, ColumbusMedian Home Price: $107,850Airbnb Rental Income: $2,170Airbnb Cash on Cash Return: 9.53%Airbnb Occupancy Rate: 49.8%% 5. Dingle Wood, ColumbusMedian Home Price: $117,317Airbnb Rental Income: $2,312Airbnb Cash on Cash Return: 9.26%Airbnb Occupancy Rate: 53.8%The Bottom LineBe a smart real estate investor and always stay up to date on the next best place to invest in real estate. With the right tools, you can not only find the perfect location but also the property of your dreams. Be sure to check out Mashvisor’s Airbnb profit calculator which will help you find the best locations for high Airbnb cash on cash return, rental income, and Airbnb occupancy rate. Let your success in real estate begin today!To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here. Start Your Investment Property Search! START FREE TRIAL Abilene TXColumbus GAHouston TXLocation 0FacebookTwitterGoogle +PinterestLinkedin Ranah AsadRanah is a long-term content writer at Mashvisor with a degree in strategic studies who enjoys writing about all aspects of the real estate investment business. Previous Post What Real Estate Analysis Software Can Do for Real Estate Investors Next Post Real Estate Investment Decisions Are Being Made by an Airbnb Investment Calculator Related Posts Real Estate Investment Decisions Are Being Made by an Airbnb Investment Calculator Is Airbnb Fort Lauderdale a Profitable Investment in 2018? Airbnb vs. Long Term Rental: Which One Is the Better Real Estate Investment Strategy for You? Does It Make Sense to Rent Out Airbnb Rooms? Watch Out for These Airbnb Trends 2018 Is Residential Real Estate Investing the Best Way to Make Money in Real Estate? Offshore Investments: Should Real Estate Investors Consider Them? What Are the Best Types of Real Estate Investments for Novice Investors? 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