Airbnb Rentals 3 Ways to Spot the Best Airbnb Investment Opportunities by Marian Khoury November 1, 2018February 19, 2019 by Marian Khoury November 1, 2018February 19, 2019 Making money with Airbnb has emerged as one of the most common ways to invest in real estate. Successful Airbnb investors have set and integrated the right investment strategies and have therefore landed on the best Airbnb investment opportunities. Of course, thorough planning prior to your investment is key to success. Before investing in any type of real estate investment, you must find an investment property that suits your goals. For Airbnb investors, choosing the location of the property marks one of the critical stages in their investment. Moreover, your rental strategy, as a real estate investor investing in rental properties, is essential to generating positive cash flow and achieving a high return on investment. In this article, we will help you find the best Airbnb investment opportunities as we answer the following questions: How to make money with Airbnb? How to find Airbnb properties for sale? What regulations govern Airbnb rentals? And where is Airbnb legal? How to find the most fruitful Airbnb investment property? Consider the Location and Use a Heatmap Analysis Tool The most common questions real estate investors ask are: How do I find the best Airbnb investment properties? And, how could I assess if a location has the best real estate investments for Airbnb renting? As a real estate investor looking for the best Airbnb investment opportunities, you would want to find a location where the costs of carrying an investment are not high. The potential profit must exceed them. To assess the profitability of an Airbnb investment opportunity, you must study the market and look at the supply and demand for Airbnb within a location. Is demand exceeding supply? Or are rates high due to lack of supply? You should consider rates and financial metrics within an area as well. What is the occupancy rate for Airbnb within the area? What rates do other current Airbnb investors charge, and how do these rates compare to the profit that you would be making? A thorough real estate market analysis will be the determining factor in your decision. With this analysis, spend plenty of time studying the location. Related: How to Perform a Real Estate Market Analysis Studying a location and assessing the profitability marks an important factor. Yes, it might be assiduous and daunting to take into account all the factors that can come into play. Luckily for you, many platforms and tools have emerged to help you find the right property. One of the most lucrative real estate investment tools to spot the best Airbnb investment opportunities is Mashvisor’s heatmap analysis tool. You should certainly get your hands on this investment tool to find the best real estate investments out there. Mashvisor’s heatmap is designed to help you observe the performance of Airbnb properties for sale within a specific neighborhood in just a matter of seconds. Related: How to Find a Property for Airbnb Real Estate Investing The tool shows the best neighborhoods to invest in, and the cheapest and most profitable properties. Moreover, the tool has a color scheme to help you spot the best properties with a single glance. The green color on the map indicates that properties in the neighborhood are performing above average. The orange color indicates an average performance, while the red color indicates a below average performance. The tool, in addition, allows you to conduct comparative investment analysis based on financial metrics that you choose such as cash on cash return or rental income. So, it allows you to determine the safety of an investment in this neighborhood. What more elements would you need to know! Mashvisor’s heat map has got them all. To start looking for and analyzing the best investment properties in your city and neighborhood of choice with this tool, click here. Study Airbnb Regulations and Avoid Cities Where Regulations Are Stringent To find the best Airbnb investment opportunities, you must look into short term rental regulations. Airbnb has proven to be beneficial for tenants and landlords since it has catered to the needs of budget-conscious travelers while making available another method for real estate investors to make money. Unfortunately, regulations have been stringently restricting the use of Airbnb in many cities. Related: What You Need to Know Before Buying an Airbnb Investment Property New York and Los Angeles have seen the most rigid regulations against the use of Airbnb. Some cities, moreover, have banned Airbnb rentals altogether. In other cities, registering your real estate investment property, getting a permit, and/or obtaining a license before listing a property and accepting guests has become mandatory. Therefore, in order to spot the best Airbnb investment opportunities, we recommend that you reach out to your local city council and inquire about the most recent regulations governing Airbnb rentals. Beware that regulations vary from one city/state to another. Regulations by City The most stringent Airbnb regulations are found in New York, San Francisco, and Santa Monica. If you’re looking to invest in these areas, we recommend that you first assess how their regulations might affect you. Here’s a glimpse of each of the aforementioned cities’ regulations. New York: NYC law allows only permanent residents to rent their real estate property. The landlord, moreover, must be present during the stay of guests where the stay mustn’t exceed 30 days. San Francisco: Similar to the regulations of New York, a landlord must be present throughout the accommodation. Rentals booked must not exceed 90 days. Airbnb investors, moreover, must register with the city council before listing property and accepting Airbnb guests. Santa Monica: Regulations in Santa Monica have almost wiped out the presence of Airbnb rentals. In order to qualify as an Airbnb host, you must live in the property during the guest’s stay. You must also register for a business license, and collect a 14% occupancy tax from tenants payable to the city. That being said, in order to spot the best Airbnb investment opportunities, we recommend that you invest your time looking into regulations across the US. Learn of the cities where Airbnb is the most flexible as far as regulations and pursue them. Related: Airbnb Regulations 2018- Invest in These Cities Where Airbnb Is Legal Use Mashvisor’s Rental Property Finder Mashvisor’s rental property finder allows you to find investment properties based on your preferences and search criteria. What makes this tool great is the fact that it utilizes a wide range of rental comps, analytics, and metrics to provide you with the best real investments- those that have the highest potential for returns. The tool will study the properties in an area for you and provide you with accurate results tailored to your search criteria. This will give you a better idea of the kind of returns you can get in a specific location while helping you find the best property. Make use of this tool. Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes! Wrapping Up As you have just learned, spotting the best Airbnb investment opportunities is not difficult. With the use of Mashvisor’s heat map analysis tool and rental property finder, you can find the most profitable and best Airbnb investment opportunities in just a matter of seconds. Most importantly, do not forget to study Airbnb regulations beforehand, as they can direct you towards areas with the best Airbnb investment opportunities. Interested in using these tools to find the best Airbnb investment properties? Click here to start your 14-day free trial right now! Start Your Investment Property Search! START FREE TRIAL Airbnb RegulationsHeatmapInvestor ToolsLocationProperty Finder 0 FacebookTwitterGoogle +PinterestLinkedin Marian Khoury Marian is an experienced content writer with a BA in economics who loves writing about everything real estate. Previous Post Outdoor Features That Will Make Your Investment Property More Valuable Next Post What Makes a Real Estate Market a Gateway Market? 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