Many real estate investors are eager to learn how to start making money in real estate. Well, one of the possibilities is with investing in rental properties. However, here comes another dilemma: wondering where to invest. The truth is that choosing the best location is a long process involving real estate market analysis. Nevertheless, even prior to conducting comparative market analysis, there is one principle real estate investors should follow. The optimal rental strategy varies per location. This means that if you are interested in purchasing traditional rentals, you should look for areas where long term rentals are recognized as the optimal rental strategy. The same applies when talking about short term rentals as well.
Let’s leave traditional rentals aside for a moment and focus on short term rentals, also known as Airbnb rentals. Which are the best places for renting out on Airbnb? Is the Florida real estate market one of them? What about the Miami Beach real estate market in specific? In order to learn everything you need to know about Airbnb Miami Beach, keep on reading this blog!
#1 Airbnb Miami Beach: The Miami Beach Real Estate Market
As an Airbnb investor, you have probably already heard about Airbnb Miami Beach and the Miami Beach Airbnb rentals. Nevertheless, in order to decide if Airbnb Miami Beach is the optimal rental strategy for you, we first need to review the Florida real estate market.
The Florida real estate market, in general, is very attractive for many investors whose strategy is renting out on Airbnb. The same goes for the Miami Beach real estate market. The destination, with favorable weather all year long and beautiful beaches, attracts many tourists not only from the country but rather worldwide. Airbnb Miami Beach is not only desired by visitors for the opportunity to have a relaxing holiday near the ocean. Miami Beach investment properties have high occupancy rates due to the rich cultural heritage in the area as well.
According to Trulia, the market trends for Miami Beach investment properties show that the property sale numbers have gone down. Meanwhile, the median property prices have increased and will more likely continue to do so. An interesting variable to observe is the constantly increasing number of Miami Beach Airbnb rentals. This is more proof that Airbnb Miami Beach is a great investment opportunity in the United States at the present moment. Curious to find out another opinion about investing in Miami? Make sure to read “Should I Invest in Airbnb Miami in 2018?”
#2 Airbnb Miami Beach: Legal Issues
When discussing Airbnb Miami Beach, it is absolutely necessary to talk over the present legal issues associated with Airbnb rentals in the region. This is done in order to present all the possible variables which you need to keep in mind when thinking about the property management of an Airbnb Miami Beach property. Here are the legal issues to consider before investing in Miami Beach Airbnb.
When it comes to Miami Beach Airbnb, there are regulations regarding the construction, design, and maintenance of your Airbnb Miami Beach rental. Besides the property management rules, keep in mind that first and foremost, you would need to obtain a business license if you want to lease your Airbnb Miami Beach property legally on the market. Moreover, Miami Beach Airbnb laws impose tourist taxation for every investor renting out his/her property for a period shorter than six months. Depending on the zone in which your Airbnb Miami Beach rental is situated, additional requirements may apply to you. In order to keep your property management legal and successful, please make sure you are consistent with all the laws in the area.
#3 Airbnb Miami Beach: The Best Places to Buy Airbnb Miami Beach Rentals
As previously discussed, real estate investors should certainly perform real estate market analysis as well as investment property analysis in order to find the best Miami Beach investment properties. Still, we can help the Airbnb investor by presenting information which reveals the areas with the most profitable Miami Beach Airbnb rentals. Are you still wondering which the best location for buying an Airbnb Miami Beach property is? Here are our top three suggestions:
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Flamingo Lummus
Median Property Price: $284,900
Airbnb Rental Income: $3,168
Airbnb Cap Rate: 4.65%
Airbnb Cash on Cash Return: 4.65%
Airbnb Occupancy Rate: 62.06%
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La Gorce
Median Property Price: $472,500
Airbnb Rental Income: $4,703
Airbnb Cap Rate: 4.41%
Airbnb Cash on Cash Return: 4.41%
Airbnb Occupancy Rate: 63.28%
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Oceanfront
Median Property Price: $512,000
Airbnb Rental Income: $4,001
Airbnb Cap Rate: 3.24%
Airbnb Cash on Cash Return: 3.24%
Airbnb Occupancy Rate: 59.36%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
It is important to note that even though experts in the field of real estate assume that values of cap rate and cash on cash return should be between 8%- 12%, the competitiveness of the market in the recent years indicates otherwise. The actual values above 4% reveal real potential of making money in real estate and are worth the attention.
Additionally, the data for this real estate market analysis is presented by Mahsvisor’s investment property calculator. This is a great real estate investment tool to boost your career and help you in making money in real estate from both long term rentals and short term rentals. However, there is a tool which ignores the traditional rentals and is specifically designed to provide detailed information regarding Airbnb rentals. Let’s review the Airbnb profitability calculator.
Interested to learn if it is smart to invest in Miami? Make sure to read “Is Airbnb Miami a Smart Real Estate Investment Choice at the Moment?”
#4 Airbnb Miami Beach: The Benefits of Using an Airbnb Profitability Calculator
The Airbnb profitability calculator is a great tool to use when your plan is renting out on Airbnb. The tool is great in helping you conduct comparative market analysis and investment property analysis as well. It can quickly provide you with the calculations of various real estate metrics as well as detailed investment property analysis. As you can imagine the tool is extremely useful for any Airbnb investor who wants to step up and be successful in the field. Interested to learn more about the Airbnb profit calculator? Make sure to read “How to Use an Airbnb Profit Calculator to Make the Most Money as a Host.”