Should I Invest in Airbnb Miami in 2018?

The Miami real estate market 2018 has been listed in Forbes 15 Booming Real Estate Markets that are Trending in 2018.” Real estate investors have been advised by the experts at Forbes to look into investment properties in South Florida as a whole.

But which kind of Miami investment property should real estate investors go for? Long term rentals or short term rentals?

“Should I invest in Airbnb Miami?” If the possibility has crossed your mind, you’re already proving to be a savvy real estate investor with an on-the-mark intuition in real estate investing. While a lot of the hype is on buying long term rental properties and selling them quickly (as we will see), Airbnb Miami offers some of the best real estate investments out there today. In fact, Miami is one of the best cities for Airbnb investment 2018.

We’ll have you convinced to buy an Airbnb Miami investment property by the end of this post. Luckily, at that point, we’ll also present you with the best places to invest in real estate for short term rentals in Miami, Fl.

Miami Real Estate Market 2018- How’s it Looking?

We’re four months in and the Miami real estate market 2018 is going strong. Let’s take a look at the real estate investing numbers for Airbnb Miami as well as long term rental properties:

Median Property Price: $400,708

Monthly Traditional Rental Income: $2,363

Traditional Rental Cap Rate: 1.82%

Traditional Rental Cash on Cash Return: 1.82%

Monthly Airbnb Rental Income: $2,774

Airbnb Rental Cap Rate: 3.11%

Airbnb Rental Cash on Cash Return: 3.11%

All of the data on the Miami real estate market 2018 is provided by Mashvisor’s investment property calculator. To get your hands on this kind of data, start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after. Click here.

Miami real estate investors may have to fork over a lot of money for the purchase of Miami investment properties (just take a look at that median property price). Yet, sales are up in all sectors of real estate investments: single family homes, condos and apartments for sales, and even luxury investment properties. Why is the Miami real estate market 2018 experiencing this success? It’s because of the value a Miami investment property offers to real estate investors.

Learn more: The Miami Real Estate Market 2018: Why and Where to Invest

While not necessarily ideal, the cap rate and cash on cash return both promise a good return on investment for Miami investment properties. If you invest in Miami real estate, you too will enjoy this return on investment. In today’s competitive real estate market, go for the “good” return on investment because the “ideal” can rarely be found.

“Flipping” Long Term Rental Properties vs. Airbnb Miami

As mentioned, flipping long term rental properties is all the hype in the Miami real estate market 2018 and for good reason, of course. Miami real estate investors are taking advantage of the fact that more and more people are moving to Miami (and Florida) because of the 2018 tax reform.

Certain locations have become too expensive to own investment property because of the reform. With Miami’s no state income tax, people are moving to the city, buying an investment property and investors are making money in real estate in this way.

Find out: How the 2018 Tax Reform Affects Real Estate Investors

Making money in real estate in Miami by selling long term rental properties is made easier because of foreign interest. According to Forbes, 25% of foreign purchases in real estate investment property was in Miami, the total being $7.5 billion spent in the US real estate market. Again, this has to do with the tax advantages of the Miami real estate market as well as the relatively affordable price per square foot compared to other hot US real estate markets.

If this is the real estate investing strategy for you, start looking for and analyzing the best investment properties in Miami. Click here and start making money in real estate with a Miami investment property.

While buying long term rental properties in Miami only to flip them quickly is a great way for making money in real estate, it by no means allows for a steady cash flow. That’s why you should invest in Airbnb Miami.

Why Choose Airbnb Miami

For one thing, double back to the real estate investing statistics above. Airbnb Miami brings a better return on investment than long term rental properties. The Airbnb rental income is higher as well as the cash on cash return and cap rate. In fact, the latter two are closer to the 5% real estate investors are told to aim for when it comes to return on investment.

What brings Miami real estate investors this kind of return on investment with short term rentals? One word- tourism. Tourist attractions are popping up every day in different neighborhoods around the Miami real estate market making it one of the best cities for Airbnb investment 2018. From being home to over 800 parks, bordered by two national parks, hosting award-winning sports events, center to cruise lines, as well as booming cultural and culinary scenes, tourists are essentially visiting Miami in record-breaking numbers.

Besides the proof in the return on investment, the occupancy rate for top Airbnb Miami neighborhoods is mostly over 50%. Any short term rentals investor will tell you, in combination with the rental income listed above, it makes for the best real estate investments. Need more proof? In 2017, Airbnb Miami hosts (along with Airbnb hosts in the whole of Miami-Dade) made $134.6 million in income.

Invest in Airbnb Miami and get a piece of the action. To start looking for and analyzing the best Miami investment properties, click here.

What about the Airbnb Laws?

Is Airbnb legal in Miami? Miami real estate investors do have to take care to research Airbnb laws in the specific locations they are looking into for where to invest in real estate. For example, Miami Beach has plenty of restrictions on an Airbnb investment, making it one of the worst locations for Airbnb Miami real estate investors to consider.

Where to Invest in Real Estate- The Best Airbnb Miami Neighborhoods

With all the Miami real estate investing statistics we’ve offered above, you now are eager to invest in Airbnb Miami. Let’s take a look at the best Airbnb Miami neighborhoods for where to invest in real estate.

Auburndale

Median Property Price: $330,000

Monthly Airbnb Rental Income: $2,862

Airbnb Cash on Cash Return: 5.05%

Airbnb Cap Rate: 5.05%

Airbnb Occupancy Rate: 48.89%

North Bayfront

Median Property Price: $290,000

Monthly Airbnb Rental Income: $2,448

Airbnb Cash on Cash Return: 4.25%

Airbnb Cap Rate: 4.25%

Airbnb Occupancy Rate: 55.63%

Coral Way

Median Property Price: $540,000

Monthly Airbnb Rental Income: $3,357

Airbnb Cash on Cash Return: 3.01%

Airbnb Cap Rate: 3.01%

Airbnb Occupancy Rate: 55.96%

Shenandoah

Median Property Price: $685,000

Monthly Airbnb Rental Income: $3,226

Airbnb Cash on Cash Return: 2.9%

Airbnb Cap Rate: 2.9%

Airbnb Occupancy Rate: 52.17%

Douglas Park

Median Property Price: $347,450

Monthly Airbnb Rental Income: $2,982

Airbnb Cash on Cash Return: 2.66%

Airbnb Cap Rate: 2.66%

Airbnb Occupancy Rate: 57.88%

To start looking for and analyzing the best investment properties in the best Airbnb Miami neighborhoods, click here.

The Miami real estate market 2018 will be profitable with either long term rentals or short term rentals, it’s true. But the best way for making money in real estate in this location seems to be Airbnb Miami. Look for investment properties in the best Airbnb Miami neighborhoods, perform a thorough Airbnb investment analysis, and get a piece of the millions Airbnb Miami real estate investors are bound to make in 2018.

Not interested in an Airbnb Miami investment property? Then read: “What is the Best Type of Miami Investment Property?” and choose one of the other profitable real estate investments in Miami.

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