If you haven’t heard by now, owning an Airbnb investment property is one of the best ways to make money in real estate—to make money in general, really. Airbnb investors owe this wealth to Airbnb rental income, of course.
Owning an Airbnb investment in 2018 is not the simplest real estate business venture. But real estate investors who take the time to find the best cities that have high short term rental income—well, these real estate investors don’t know the meaning of a negative cash flow property!
With a tool like Mashvisor’s investment calculator that gives you access to accurate Airbnb data, you too can erase the term negative cash flow from your real estate investing vocabulary. Below are the best places to invest in real estate for high Airbnb rental income in 2018.
The 7 Best Cities for Airbnb Investment 2018 with High Airbnb Rental Income
Easily find the best Airbnb real estate investment in any one of these cities right now. Click here to start your investment property search.
To ensure success with Airbnb real estate investing, take a look at the other metrics of real estate investment for each of these cities (provided by Mashvisor’s Airbnb calculator).
Key West, FL
- Median Property Price: $948,095
- Airbnb Rental Income: $7,659
- Airbnb Cash on Cash Return: 5.22%
- Airbnb Cap Rate: 5.22%
- Airbnb Occupancy Rate: 66.78%
Sonoma, CA
- Median Property Price: $1,355,975
- Airbnb Rental Income: $7,257
- Airbnb Cash on Cash Return: 5.27%
- Airbnb Cap Rate: 5.27%
- Airbnb Occupancy Rate: 59.86%
Santa Barbara, CA
- Median Property Price: $1,583,220
- Airbnb Rental Income: $4,522
- Airbnb Cash on Cash Return: 1.69%
- Airbnb Cap Rate: 1.69%
- Airbnb Occupancy Rate: 50.77%
Mill Valley, CA
- Median Property Price: $1,254,500
- Airbnb Rental Income: $4,220
- Airbnb Cash on Cash Return: 1.25%
- Airbnb Cap Rate: 1.25%
- Airbnb Occupancy Rate: 54.34%
San Francisco, CA
- Median Property Price: $1,652,435
- Airbnb Rental Income: $4,301
- Airbnb Cash on Cash Return: 1.04%
- Airbnb Cap Rate: 1.04%
- Airbnb Occupancy Rate: 62.19%
Cathedral City, CA
- Median Property Price: $314,840
- Airbnb Rental Income: $3,050
- Airbnb Cash on Cash Return: 5.26%
- Airbnb Cap Rate: 5.26%
- Airbnb Occupancy Rate: 42.19%
Brookhaven, GA
- Median Property Price: $554,560
- Airbnb Rental Income: $3,187
- Airbnb Cash on Cash Return: 2.52%
- Airbnb Cap Rate: 2.52%
- Airbnb Occupancy Rate: 42.27%
Get a closer look at any city’s real estate investing potential with Mashvisor. To start with Mashvisor and subscribe to our services, click here.
If you’re one of the Airbnb investors who has done their research, you may know that short term rental income is not the only factor that matters when you invest in real estate with this rental strategy. Let’s take a look at a few other key factors, and what you’ll see is how they all come back to Airbnb rental income in the end.
Reviewing all of these will remind Airbnb investors why looking for the best cities for Airbnb investment in 2018 with high short term rental income is so important. Airbnb rental income is intertwined with every element of success for owning an Airbnb real estate investment.
The Best Places to Invest in Real Estate for Short Term Rentals: What Do They Look Like?
We know that the best places to invest in real estate for short term rentals have high short term rental income. But there must be other common factors that make these the best cities for Airbnb investment in 2018, right? Besides the basic elements of a city that contribute to successful Airbnb real estate investing, like a healthy economy, tourism needs to be alive and well in the real estate market.
The higher the demand for Airbnb investment property in a real estate market, the more Airbnb investors get to charge for nightly rates. The higher the nightly rates, the more Airbnb rental income.
Not only that but in real estate markets where tourism is a major industry, the high seasons with festivals, concerts, and seasonal activities are an even better opportunity for making high short term rental income.
When you picture the best places to invest in real estate for short term rentals, the picture should be filled with tourists.
Supreme Airbnb Property Management = High Airbnb Rental Income
Even in the best cities for Airbnb investment in 2018, you’ll find Airbnb investors falling flat on their faces. They invested in real estate markets with the highest short term rental income and yet they know too well what a negative cash flow property is and can’t seem to turn things around.
The likely issue? Subpar Airbnb property management. Just because a certain real estate market offers up all it can to make way for successful Airbnb real estate investing, that doesn’t mean owning an Airbnb there automatically makes you rich.
You have to have top-notch Airbnb property management when it comes to the best cities for Airbnb investment in 2018. With the high demand for short term rentals comes high competition from Airbnb investors as well. If someone else is offering better Airbnb property management than you, you’ll miss out on the high rental income that brought you there in the first place.
Positive Airbnb Reviews = High Airbnb Rental Income
If a real estate investor’s Airbnb property management is successful, positive Airbnb reviews are more than likely to follow. When Airbnb guests want to know where to rent on Airbnb, they don’t just look at your rental property listing. They take a good, hard look at the positive and the negative Airbnb reviews.
Simple things like open communication between Airbnb host and guests, a clean rental property and privacy are the basics of good Airbnb property management. For raving Airbnb reviews, however, you have to go a step further. Welcome baskets, breakfast, a pamphlet of suggested tourist sites, maybe even offering an Airbnb experience/tour in the city—all of these things can get you really positive Airbnb reviews. These are the kinds that can outshine a negative Airbnb review or two, which Airbnb hosts have to brace themselves for; it happens.
High Airbnb Occupancy Rate = High Airbnb Rental Income
A location with high demand for short term rentals, supreme Airbnb property management, and the positive Airbnb reviews that follow all lead to a high Airbnb occupancy rate. The more times out of the year your Airbnb investment property is booked, the higher the Airbnb rental income. It’s all connected. It’s all part of the formula for owning an Airbnb investment property and actually succeeding with it.
Airbnb rental income is the essence of your short term rental property. Choose from the best places to invest, be on top of Airbnb property management and watch the rental income roll in!