Investment StrategiesAirbnb Investment vs. Traditional Investment: Which is The Optimal Strategy? by Eman Hamed April 29, 2018April 19, 2018 by Eman Hamed April 29, 2018April 19, 2018One of the most frequently asked questions among real estate investors is which investment strategy is better: Airbnb investment or traditional investment?To determine the optimal investment strategy, property investors have to take into account three specific factors before making such a decision.Location Some locations yield a higher ROI and are better suited for an Airbnb investment and others for a traditional investment. It all comes down to the demand for each investment strategy in the real estate market. For example, if you’re a real estate investor in a market with a strong tourism industry, like the Orlando real estate market, then an Airbnb investment would be more favorable because there’s a higher demand for Airbnb rentals than for traditional rentals.Alternatively, if you own an investment property in an area that offers job opportunities and is attractive to students and employees, like the Austin real estate market, then demand for traditional investment properties would be higher, making it a favorable market for a traditional investment over an Airbnb investment.Property TypeIn the world of real estate investing, property investors are offered many types of residential investment properties to choose from. There are single-family homes, multi-family homes that range from duplexes to entire complex buildings, condos and townhouses, etc. Some types work best as traditional investment properties and others as Airbnb rentals.If you’re investing in a single-family home, for example, then the optimal rental strategy would be a traditional investment since families look for places to live in for a long time period. A beach house, however, would be a perfect Airbnb investment property.Related: What’s the Best Property Type for Airbnb Rentals?Target Tenants If the real estate investor is targeting families, then a long-term traditional investment would be the optimal rental strategy. On the other hand, Airbnb rentals are more attractive to travelers or businesspeople. These are tenants looking for places to stay for a short time period that are not as costly as hotels. Thus, if these are your target tenants, then an Airbnb investment is best for you.Click here to start looking for and analyzing the best investment properties in your city and neighborhood of choice. Still Stuck? Mashvisor Can HelpMashvisor’s rental property calculator is the best tool for a real estate investor to determine which investment strategy is optimal! It allows property investors to calculate the different values related to an investment property such as Cash on Cash Return, Cap Rate, Cash Flow, and Airbnb Occupancy Rate.Mashvisor also provides Airbnb and traditional comps based on qualitative and quantitative data gathered from different sources. This allows a real estate investor to easily compare different investment properties (and different investment strategies) to determine the optimal rental strategy and property type for both an Airbnb investment and a traditional investment.Sign up with Mashvisor to get full access to these real estate investing tools and more!Interested in learning more about this topic? Read this: Airbnb Investment or Traditional Investment: How to Determine The Optimal Strategy Start Your Investment Property Search! START FREE TRIAL Austin TXOrlando FL 0FacebookTwitterGoogle +PinterestLinkedin Eman HamedEman is a Content Writer at Mashvisor. With a focus on market reports, she enjoys researching the state of the real estate market in different cities across the US. Eman also writes about trends, forecasts, and tips for beginner investors to gain the confidence and knowledge they need to make wise decisions. Previous Post Wholesaling Real Estate: All You Need to Know About the Process Next Post How to Become a Successful Real Estate Developer Related Posts 10 Tactics to Achieve the Best Return on Investment in Real Estate 7 Characteristics of a Successful Real Estate Developer How to Make Passive Income From Real Estate Investing The Best Airbnb Occupancy Rate by City in the US Housing Market for 2018 Do You Need a Commercial Real Estate Agent for Buying Multi Family Homes for Investment 8 Best Real Estate Investment Strategies for Beginners How to Invest in Rental Properties Away from Home? How Can You Make Money from Home in Real Estate Investing? The Best Way to Invest $10,000: A Real Estate Investment Buying a Rental Property vs. Stocks: Which Is a Better Investment Decision? Income Properties – The Best Types to Own During Summer 2018 What Are the Best Short Term Investments in Real Estate for 2019?