Have you been thinking about investing in Airbnb but don’t know where to start? How about Airbnb Panama City Beach? This is the perfect location for investing in short-term rentals for many reasons which we will discuss. This city is home to the “World’s Most Famous Beach” and that’s exactly why making money in real estate through Airbnb rentals is the optimal investment strategy here.
Why You Should Invest in Airbnb Panama City Beach
Panama City Beach has always been thought of as a quiet little beach town where southern families spent their vacations. The stereotypical image so many people have of Panama City Beach has changed over the past 5 years making it the best place to invest in for both long-term rentals and short-term rentals.
Hotels were replaced with luxury high-rise beachfront resorts and a brand new airport was built servicing both the Southwest and Delta. Additionally, a mega shopping center with an entertainment and dining complex was built causing the city’s tourism rate to double!
Related: Panama City Beach Real Estate: Why You Need to Own a Piece
So is now a good time to invest in Airbnb Panama City Beach? Definitely yes! If you’re looking to rent out your place to guests or purchase a vacation home rental property, then you can be sure that both are smart investment strategies that will generate a high return on investment. There are many reasons behind the success of the Panama City Beach real estate market. Let’s take a close look at them.
#1: Appreciation
Home prices in Panama City Beach have continued to grow, increasing the real estate appreciation rate to 14.2%. Homes in the city have appreciated twice as much as the national average. Despite the high growth in appreciation, home prices still remain affordable in comparison to other neighboring cities. This is a great opportunity to seize for real estate investors thinking about investing in Airbnb Panama City Beach.
#2: Affordability
Like I mentioned previously, home prices in the Panama City Beach housing market are more affordable than most US housing markets. This city is not only a great place to invest but also a great place to live due to its affordable cost of living which is 10.6% less than the state average.
Panama City Beach attracts many people from all over the country both those wanting to live and those who want to enjoy their vacation. This is why the city’s population increased by 3.8% since last year.
#3: A Great Thriving Economy
It is a known fact that no real estate market can be complete without a thriving economy. With that said, Panama City has an unemployment rate of 5.5%. Additionally, this city is expected to see immense employment growth in coming years.
#4: No Personal Income Tax and High Tourism
In general, the Florida real estate market is so appealing to many real estate investors because there is no personal income tax to pay. This is great news for anyone considering investing in Florida.
As for Airbnb Panama City Beach, we can all agree by now that it’s the optimal rental strategy due to the city’s high tourism. Vacation home rentals and condos are very popular types of investment properties that generate positive cash flow and have a high return on investment. With this city’s sandy beaches and luxurious resorts, you can guarantee that investing in Airbnb is a good idea.
Read Also: The 7 Best Places to Buy a Vacation Home in Florida
Now that you have a clear idea of why the Panama City Beach real estate market has been looking hot recently, let’s discuss a little more about Airbnb Panama City beach and what tips to follow to ensure you make the most profitable purchase.
Obviously, due to the city’s high tourism rate and many attractions, the best rental strategy is investing in short-term rentals. You can invest in different types of vacation homes that all have high cash on cash return. But before you dive into a pool of options, take into account the following tips.
Tips for Buying Airbnb rentals in Panama City Beach
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Make a plan
First things first HAVE A PLAN! Think about what factors will affect your Airbnb occupancy rate and Airbnb rental income. Ask yourself what neighborhood in Panama City Beach attracts the most tourists? What time of year is this city most active? How much should I charge for rent? All of these factors need to be thoroughly thought of before making any purchases.
To help you understand everything you need to know about your future rental property, you should conduct a real estate market analysis. By performing a real estate market analysis, you will be able to determine the market value of your property and compare your property with other similar properties in your area in terms of rental income, Airbnb occupancy rate and return on investment.
This will help you decide whether or not investing in Airbnb Panama City Beach is a smart investment decision. Check out Mashvisor for the best real estate investment tools to help you conduct a real estate market analysis with ease.
Related: What Are the Best Tools for Real Estate Market Analysis?
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
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Get a Good Real Estate Agent
Before investing in Airbnb Panama City Beach, you need to talk to a local real estate agent who is familiar with the area. Real estate agents will help you find the right property and can assist you with knowing how much revenue you may be able to generate. They can also help you out in determining how you will manage your Airbnb rental.
Will you hire a professional property management company or will you self-manage your property?
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Understand the City’s Airbnb Regulations
Each city has its own laws and regulations concerning short-term rentals. That is why before investing in Airbnb Panama City Beach, check to see what regulations apply to you. Overall, the city does not have any strict Airbnb regulations but always double check to be on the safe side since these regulations are constantly changing.
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Get Ready to Finance!
Qualifying for a mortgage is not always a smooth sailing ride especially if you are thinking about investing in a vacation rental property and renting it through Airbnb. Financing for a second home takes longer than you are used to and they may ask for more documents and maybe even a larger down payment. That is why know your plan, hire a professional mortgage broker, and get ready to finance!
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Search for the Right Airbnb Rental Property
There are many condos for sale in Panama City Beach as well as townhouses and different types of vacation homes that can all be rented out as short-term rentals. It is important that you take your time searching for the right property so you don’t miss out on a high return on investment. There are numerous real estate investing websites that can help you find properties all over the country.
Mashvisor, for example, has all the necessary tools to make your property search faster and stress-free. With Mashvior’s property finder tool, heat map analysis, and Airbnb profit calculator, you can find the best performing property in a matter of minutes. You can filter out properties that don’t match your search criteria.
It was through the use of our tools that we were able to pull out all the data concerning Airbnb Panama City Beach. Plus with our property finder tool, we were able to pull out the best properties for Airbnb investments! Let’s take a closer look.
Related: The Airbnb Profitability Calculator: The Best Friend of the Short-Term Rentals Investor
To learn more about our product, click here.
Airbnb Panama City Beach Stats
- Median Property Price: $380,826
- Monthly Airbnb Rental Income: $3,252
- Airbnb Cap Rate: 5.08%
- Airbnb Cash on Cash Return: 5.08%
- Airbnb Occupancy Rate: 60.92%
Best performing properties in Panama City Beach for Airbnb investments according to Mashvisor’s property finder tool:
NOTE: If you want to take a closer look at these properties in full detail, click here.
Airbnb Panama City Beach Property #1
- Listing price: $139,900
- Airbnb Cash on Cash Return: 14.97%
Airbnb Panama City Beach Property #2
- Listing price: $142,500
- Airbnb Cash on Cash Return: 14.67%
Airbnb Panama City Beach Property #3
- Listing price: 153,000
- Airbnb Cash on Cash Return: 13.86%
Airbnb Panama City Beach Property #4
- Listing price: $148,900
- Airbnb Cash on Cash Return: 13.56%
The Bottom Line
Is Airbnb Panama City Beach worth the time? Of COURSE, IT IS! This city has proven to be the best place to invest for short-term rentals. Invest here today before it’s too late and start making money like you’ve never seen before!
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