The Airbnb investment strategy is widely considered the best way to make money in real estate. However, not everyone who invests in Airbnb becomes successful. So, one common question investors have is, “What is the key to making money with Airbnb?” The secret is to use Airbnb big data.
Big data has had a great impact on how business is done in a wide range of industries across the world, including real estate. When it comes to Airbnb real estate investing, savvy investors usually rely on big data for Airbnb investment analysis and decision making.
Big data is essentially a high volume of data from a variety of sources that can be analyzed for insights. Such insights are crucial for making smarter investment decisions. By effectively collecting and analyzing Airbnb big data, real estate investors can get an accurate assessment of Airbnb investment opportunities.
In this article, we will discuss how you can use Airbnb big data for Airbnb investment analysis.
Big Data and Airbnb Predictive Analytics
In the world of vacation rental investing, predictive analytics refers to the collection and analysis of Airbnb big data to predict future outcomes. Basically, this type of Airbnb analytics helps real estate investors to find the best markets for Airbnb investment and the best Airbnb properties for sale.
Before Airbnb big data and predictive analytics, investors based their decisions mostly on intuition and first impressions. Today, Airbnb data analysis is used to make accurate predictions about housing market trends and investment risk.
Using the Best Airbnb Big Data Analytics Platform – Mashvisor
While the implementation of big data in real estate has become popular in recent times, many still don’t know how to take advantage of it. Airbnb big data is so large and diverse and tends to grow at an ever-increasing rate. This makes its collection and analysis an intimidating task for many real estate investors, especially those who are just starting out.
First, Airbnb big data is not easy to find. You also need inexpensive and innovative data processing tools that can do the analytical heavy lifting for you quickly and accurately. Remember, if you want to be successful in any business and beat the competition, you should be able to make faster decisions. When it comes to investing in short-term rentals, the accuracy and effectiveness of your Airbnb big data analysis are what will give you a competitive advantage. And that’s where Mashvisor comes in.
Mashvisor is a real estate investment software that gives investors access to accurate and reliable real estate data analytics for both Airbnb and traditional properties in the US. Mashvisor uses Airbnb big data and machine learning to help guide the decisions of Airbnb investors.
If you are thinking of owning an Airbnb, using data provided by a trusted Airbnb analytics platform like Mashvisor is the easiest way to find profitable Airbnb for sale. Mashvisor provides Airbnb rental data collected from Airbnb and processes it using a number of real estate investment tools to give you meaningful insights. These insights are then verified by active hosts. So you don’t have to worry about Airbnb big data collection or analysis of Airbnb data using traditional processing tools like Airbnb spreadsheets, which is daunting and time-consuming, to say the least.
Related: Airbnb Rental Data: Why Investors Need It Now More Than Ever
Mashvisor will help you make more money using Airbnb big data analytics by enabling you to find the following:
1. Best Markets for Airbnb Investing
Location is the most crucial element of real estate investing, especially when you are investing in Airbnb. If you want to find an Airbnb for sale with a good return on investment, doing thorough Airbnb market research is crucial, both at the city level and neighborhood level. Airbnb big data helps investors to choose the best place to buy Airbnb property.
When it comes to choosing the best city for Airbnb investment, you can use city-level data provided by Mashvisor’s blog. Here, you’ll find up-to-date Airbnb data analytics for major cities in the US. This makes it easier for you to find the most profitable city to buy Airbnb for sale, whether you are a first-time or part-time investor. This is one list to get you started: 6 Great Cities for Airbnb Investing Right Now.
2. Best Neighborhoods for Airbnb Investment
Once you have selected a profitable city, you need to conduct a neighborhood analysis. While the city may be lucrative in general, the investment potential of each neighborhood differs. One area may be a popular tourist destination while another may fail to receive a single tourist for several months. That’s why it’s important to dig deeper and analyze Airbnb big data for neighborhoods within the city.
With Mashvisor’s Real Estate Heatmap, you can use Airbnb big data analytics to find the best-performing neighborhood in the city to invest in Airbnb. Our Heatmap uses different colors to show the performance of the neighborhoods within your selected real estate market based on a number of criteria. Neighborhoods with low values are marked in red while those with high values are marked in green.
Here are the filters that investors can use to search for the best neighborhood in the city:
- Listing price
- Airbnb rental income
- Airbnb occupancy rate
- Airbnb cash on cash return
You can play around with these filters to find the most profitable neighborhood for Airbnb investment in your city of choice. It should be a neighborhood that is affordable, has a high Airbnb rental income, a high Airbnb occupancy rate, and a good Airbnb return on investment. Try it now.
3. Best Airbnb for Sale
Now that you have identified a great neighborhood for investing in Airbnb, the next step is to use Airbnb big data to find the best investment property to use with the Airbnb investment strategy in that neighborhood.
Once you’ve found a number of investment properties sale that match your criteria, you need to conduct a comprehensive Airbnb investment analysis to determine which one has the highest profit potential. Your Airbnb investment analysis should include the following key Airbnb metrics:
Related: 4 Key Airbnb Investment Metrics You Should Know
Running an Airbnb business can be quite costly. There are a number of recurring expenses that can eat into your profits including property management costs, insurance, property taxes, and more. Before you buy an Airbnb property, you should ensure that it has a positive cash flow. This means that the Airbnb rental income will be more than the Airbnb rental expenses.
Thanks to Mashvisor’s Airbnb Calculator, for any listing on the platform, you can get quick estimates for Airbnb rental expenses (one-time startup costs and recurring costs) and Airbnb rental income, as well as the potential cash flow. This will make it possible for you to easily identify rental properties with the biggest cash flow. The estimates for Airbnb income and expenses are based on data from rental comps, which Mashvisor finds and processes for you.
Moreover, the Airbnb Calculator is an interactive tool that allows you to enter custom expenses. You’ll be able to see how they impact your cash flow and return on investment.
Airbnb Occupancy Rate
Your Airbnb investment analysis should also include the Airbnb occupancy rate because it will have a significant impact on your Airbnb rental income and return on investment. With Mashvisor’s Airbnb Calculator, you can easily access reliable Airbnb occupancy rate data for any investment property on the platform.
Airbnb Return on Investment
Airbnb return on investment is the most crucial metric used in determining the profitability of an Airbnb investment. Essentially, it is the measure of the amount of profit a short-term rental property can make as a percentage of its cost.
Mashvisor’s Calculator analyzes Airbnb big data to give you accurate estimates of the Airbnb cap rate and Airbnb cash on cash return that any rental property on the platform is expected to generate.
Airbnb Sales and Rental Comps
Making money with Airbnb demands that you only pay for what an investment property is worth. You also need to charge the right amount once you get the property up and running. Our Calculator uses Airbnb big data to provide you with reliable Airbnb comps for all listings on the platform. This data will help you find the fair market value of an Airbnb for sale and avoid overpaying. With rental comps, you will also be able to set a competitive rental rate.
Related: Airbnb Pricing: How Much to Charge for Rent
The Bottom Line
If you want to make money with Airbnb, your investment decisions should be based on accurate Airbnb big data analysis. Mashvisor gives you quick access to accurate and reliable Airbnb big data analytics. It’s arguably the best Airbnb data analytics platform for those who are looking to invest in the US housing market.
To get access to our real estate investment tools, click here to sign up for Mashvisor today and enjoy 15% off.