Airbnb properties for sale offer a lot of lucrative opportunities for both experienced and beginner real estate investors.
Table of Contents
- Why Airbnb?
- How to Find Airbnb Properties for Sale
- Top 10 Cities for Finding Airbnb Properties for Sale
- Conclusion
Since Airbnb and other similar platforms started almost two decades ago, many vacation house rental investors have enjoyed earning high returns. However, not all Airbnb properties for sale can become profitable; that is why it’s important to choose your location wisely. Fortunately, finding Airbnb properties for sale has been made easier with the emergence of various real estate investment tools.
If you’re a new investor looking to invest in short-term house rentals, you might be wondering how to find the right investment property for sale, how to invest in Airbnb, and what the best cities for Airbnb are. When it comes to real estate investing, knowledge is power. There are several things that you need to know when looking for the best property for sale to ensure that you’re buying a good investment.
To determine the best property for sale, you should consider Airbnb investing. You need to take into account several factors, including the tourism industry, the demand for short-term house rentals, the climate, and the general performance of the local economy. More importantly, when looking for Airbnb properties for sale, you should know the metrics that you need to check to help you assess the profitability of a particular investment property or vacation house for sale.
Whether you’re buying your first Airbnb rental property for sale or even your seventh, it’s crucial to spend some time digging into this essential information if you want to be successful.
Related: 8 Steps to Finding an Airbnb Investment Property
Why Airbnb?
Watch our video below to find out if listing your property on Airbnb is the right choice for you:
Airbnb is an online marketplace that connects landlords with renters. It does not own the rental properties listed on the platform; various rental property owners and investors worldwide do. Airbnb’s role is to provide a place for the vacation house rentals to be posted, acting as an intermediary between hosts and guests.
Launched in 2008, Airbnb is a leading online platform for vacation house rental properties for sale. Travelers favor the home-sharing platform over hotels for its accessibility, homey experiences, and lower prices. With the gradual reopening of the tourism industry now, real estate investors expect to see a high demand for vacation house rentals for sale in 2022.
Vacation house investors choose to invest in Airbnb for the following reasons:
Free Marketing
As an Airbnb real estate investor, you can also list your rental property for sale online for free. When listing your short-term rental, you can provide written descriptions, photographs with captions, and a user profile to allow guests to know about the host and the property. Airbnb will show your property to millions of potential guests from all over the world, giving your vacation house rental greater exposure.
Extra Income
You can own an Airbnb rental property while handling another business or working a full-time job, allowing you to earn extra income. Also, as an Airbnb host, you get to choose the rent that you want to charge for your vacation house, depending on the season. It means you’ll be able to control how much you can earn on your Airbnb property.
Protection
What makes Airbnb more favorable than a traditional rental house for sale is because of the platform’s Host Guarantee Program. This program provides protection for up to $1 million in damages to covered rental properties. On the other hand, traditional rental property owners are usually responsible for the repairs needed when the property is damaged.
How to Find Airbnb Properties for Sale
Similar to finding any type of investment property, you need to do your research thoroughly to ensure that you’re buying the vacation house for sale that offers the highest potential for profits. The following steps can help you find the best Airbnb property for sale:
1. Choose Where to Buy Airbnb Properties for Sale
Whether you’re buying an investment property for Airbnb, traditional rental, or fix and flip, the property’s location is a crucial factor that can either make or break your investment. Make sure to choose your location wisely. For Airbnb investing, finding a location where tourists usually flock all year round is a great idea for your investment property for sale.
For example, Florida is one of the top tourist destinations because of its warm weather, beautiful beaches, and world-class attractions. They are the reasons why there is a high demand for Airbnb properties for sale in Florida.
Remember that vacation house rentals are typically a seasonal business. To ensure high occupancy rates in your Airbnb for sale, you must choose your location strategically so you can earn sufficient cash flows that can make your investment for sale profitable.
2. Know the Airbnb Rules and Regulations
When you are looking for Airbnb properties for sale, you must consider the city’s Airbnb regulations and laws, as they can result in detrimental effects on your short-term house rental investment. There are varying rules and regulations for operating a short-term rental depending on the location, so it’s crucial to know and understand the laws before you buy an income property for sale.
There are also existing regulations that restrict and even ban the use of Airbnb in some areas. Therefore, it is important that you thoroughly study the legalities of buying a property for sale or operating an Airbnb rental property in your chosen city.
For instance, if you plan to invest in Airbnb properties for sale in Orlando, you should first find out whether or not Airbnb is legal in the city. Once you’ve established that it’s legal to operate a short-term rental property in Orlando, you need to determine the specific rules and regulations. One limitation that you should be aware of before you invest in Airbnb Orlando is that hosts should remain on-site during the guests’ stay.
The good news is that most cities in the United States now regulate the operations of short-term house rentals. In most cases, certain permits should be secured before you’ll be allowed to list a property for rent on any platform.
We recommend that you reach out to the local city council to inquire about the most recent regulations about properties for sale so you can comply accordingly. As mentioned, Airbnb laws, limitations, and regulations vary from one state to another, and sometimes, they can vary from city to city.
3. Use the Right Real Estate Investment Tools
Finding profitable rental properties for sale should not be a difficult task, particularly with the emergence of various investment tools such as the online property finder and profit calculator.
When searching for Airbnb properties for sale, we recommend that you use the following real estate investment tools, as they will assist you in finding the best property for sale and those that will derive the most profit.
Rental Property Finder
A rental property finder is a tool used to browse investment properties for sale in different locations to determine which ones have the most potential for profitability. The tool allows you to find investment properties for sale based on your preferences and search criteria.
Mashvisor’s Rental Property Finder, in particular, utilizes a wide range of data comps, analytics, and financial metrics to provide real estate investors with lists of investment properties for sale with the highest potential for returns for their vacation house.
Related: Where Can You Find Airbnb Properties for Sale?
Mashvisor’s Property Finder
When searching for Airbnb properties for sale using Mashvisor’s Rental Property Finder, type in your preferred cities and then set the filter for the Airbnb house rental strategy.
For example, if you are looking for Airbnb properties for sale in Miami, you can type “Miami” in the location section. Then, set your preferred budget, property type, and the number of bedrooms and bathrooms.
The tool then recommends and provides you with investment properties for sale that have a high profitability potential based on cash on cash return, capitalization rate, and occupancy rate.
Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes!
Airbnb Rental Calculator
The Airbnb rental calculator is another real estate investment tool that has proven to be invaluable in helping real estate investors find the best Airbnb properties for sale. The tool allows real estate investors to analyze Airbnb rental properties and assess their profitability before actually choosing a vacation house for sale.
You can input the assumed costs associated with an income property for sale into the calculator. Then, the calculator estimates the return on investment and profits expected based on the available Airbnb data, such as the rental income, listing prices, and occupancy rates. By using a rental calculator, Airbnb real estate investors confirm the viability of listing the property on sale on Airbnb as a short-term rental strategy.
To help real estate investors make good decisions about their vacation house rental investment properties on sale, the income calculator provides the following:
- Cash Flow: Cash flow is the difference between the monthly rental income and monthly expenses. Remember, a positive cash flow is what you should aim for to ensure that the investment property for sale will be profitable.
- Airbnb Cap Rate: The cap rate shows a real estate investor what kind of return on investment they will receive by comparing the annual income to the property’s purchase price, regardless of whether the property is acquired through cash or loan.
- Airbnb Cash on Cash Return: Airbnb cash on cash return shows you the return on investment in terms of how much money the income property makes compared to how much money you invest in it.
Top 10 Cities for Finding Airbnb Properties for Sale
While it’s tempting to go online and directly search for “Airbnb properties for sale near me,” your current location may not be the best area for Airbnb investing. Before you decide on a location for your Airbnb investment property for sale, you need to determine the top cities that are best for short-term rentals.
Below is data gathered by Mashvisor’s real estate investment tools showing the top locations for finding Airbnb properties for sale based on cash on cash return, arranged from the highest to the lowest:
1. Linton, IN
- Median Property Price: $232,500
- Average Price per Square Foot: $113
- Days on Market: 17
- Monthly Airbnb Rental Income: $2,515
- Airbnb Cash on Cash Return: 9.99%
- Airbnb Cap Rate: 10.46%
- Airbnb Daily Rate: $146
- Airbnb Occupancy Rate: 53%
- Walk Score: 69
With a population of 5,126 (2020 Census), Linton is a city in Greene County, Indiana. Visitors can choose among various outdoor activities around the city. With more than 40,000 people arriving at the city for the largest Independence Day parade in the state, property owners can expect a windfall in Airbnb rental income during the summer.
2. Coventry, CT
- Median Property Price: $419,519
- Average Price per Square Foot: $190
- Days on Market: 58
- Monthly Airbnb Rental Income: $3,914
- Airbnb Cash on Cash Return: 9.95%
- Airbnb Cap Rate: 10.27%
- Airbnb Daily Rate: $185
- Airbnb Occupancy Rate: 64%
- Walk Score: 17
Spanning almost 40 square miles of forests and farmlands, Coventry is home to several places of interest, such as Wangumbaug Lake or Coventry Lake, herb farms, museums, and antique and collectible boutiques for shopping enthusiasts. Getting around town is convenient, thanks to several modes of public transportation.
The town is also an electric vehicle-friendly community. Rental property owners will welcome tech-oriented professionals looking for a quick getaway from the hustle and bustle of city life.
3. Hampden, ME
- Median Property Price: $399,770
- Average Price per Square Foot: $136
- Days on Market: 34
- Monthly Airbnb Rental Income: $2,268
- Airbnb Cash on Cash Return: 9.92%
- Airbnb Cap Rate: 10.49%
- Airbnb Daily Rate: $115
- Airbnb Occupancy Rate: 69%
- Walk Score: 35
Hampden named itself “The Community of Choice in Central Maine.” It offers open spaces and well-designed residential areas that attract young professionals who wish to start their own families.
Small family businesses and service establishments thrive in Hampden, which is also ranked the second safest city in Maine in 2019.
4. Pottstown, PA
- Median Property Price: $313,982
- Average Price per Square Foot: $163
- Days on Market: 46
- Monthly Airbnb Rental Income: $3,470
- Airbnb Cash on Cash Return: 9.91%
- Airbnb Cap Rate: 10.34%
- Airbnb Daily Rate: $133
- Airbnb Occupancy Rate: 66%
- Walk Score: 55
Located in Montgomery County, PA, around 40 miles northwest of Philadelphia and 20 miles southeast of Reading, Pottstown features several interesting spots. The local attractions include the Schuylkill River Trail, which is a multi-use trail that is perfect for adventure-seekers of all ages.
5. Eureka, IL
- Median Property Price: $202,240
- Average Price per Square Foot: $103
- Days on Market: 14
- Monthly Airbnb Rental Income: $2,287
- Airbnb Cash on Cash Return: 9.89%
- Airbnb Cap Rate: 10.51%
- Airbnb Daily Rate: $117
- Airbnb Occupancy Rate: 70%
- Walk Score: 57
Eureka is the country seat of Woodford County and is part of the Peoria, Illinois Metropolitan Statistical Area. It is known for Eureka College, which is the alma mater of former US President Ronald Reagan. Eureka is also home to Kaufman Park and Eureka Lake Park, which are perfect destinations for family trips.
6. New Scotland, NY
- Median Property Price: $403,450
- Average Price per Square Foot: $183
- Days on Market: 203
- Monthly Airbnb Rental Income: $2,286
- Airbnb Cash on Cash Return: 9.85%
- Airbnb Cap Rate: 10.42%
- Airbnb Daily Rate: $172
- Airbnb Occupancy Rate: 60%
- Walk Score: 14
Located southwest of Albany, the town of New Scotland spans almost 60 square miles. It is home to several school districts, historical places, public libraries, and municipal parks.
7. Durham, CT
- Median Property Price: $659,080
- Average Price per Square Foot: $202
- Days on Market: 181
- Monthly Airbnb Rental Income: $6,063
- Airbnb Cash on Cash Return: 9.73%
- Airbnb Cap Rate: 9.92%
- Airbnb Daily Rate: $252
- Airbnb Occupancy Rate: 62%
- Walk Score: 38
Durham was previously a farming village on the Coginchaug River in central Connecticut. Its town center is listed as a historic district on the National Register of Historic Places. With a total area of around 24 square miles, Durham offers a small-town feel with historical landmarks.
8. Dixon, IL
- Median Property Price: $204,827
- Average Price per Square Foot: $109
- Days on Market: 43
- Monthly Airbnb Rental Income: $3,293
- Airbnb Cash on Cash Return: 9.70%
- Airbnb Cap Rate: 10.08%
- Airbnb Daily Rate: $225
- Airbnb Occupancy Rate: 62%
- Walk Score: 73
Situated along Rock River in northwestern Illinois, Dixon is the county seat of Lee County and the childhood home of former President Ronald Reagan. Aside from being a regional employment hub, it is also home to several art venues and historical parks.
9. Colchester, CT
- Median Property Price: $399,787
- Average Price per Square Foot: $189
- Days on Market: 44
- Monthly Airbnb Rental Income: $3,468
- Airbnb Cash on Cash Return: 9.68%
- Airbnb Cap Rate: 10.09%
- Airbnb Daily Rate: $195
- Airbnb Occupancy Rate: 66%
- Walk Score: 54
Colchester town in New London County is considered one of the best places to live in the state. Residents and tourists alike can expect a suburban rural mix feel while living in Colchester.
10. Scranton, PA
- Median Property Price: $192,619
- Average Price per Square Foot: $102
- Days on Market: 80
- Monthly Airbnb Rental Income: $2,522
- Airbnb Cash on Cash Return: 9.67%
- Airbnb Cap Rate: 10.31%
- Airbnb Daily Rate: $113
- Airbnb Occupancy Rate: 76%
- Walk Score: 24
Scranton is the county seat and largest city of Lackawanna County in Wyoming Valley, Northeastern Pennsylvania. Families are attracted to the city’s low cost of living and low crime rate. Young professionals also love Scranton’s vibrant downtown scene.
Related: The Ultimate Guide to Buying an Airbnb Property with Ease
Conclusion
Finding Airbnb properties for sale with the emerging real estate investment tools is now easier than ever. With Mashvisor’s Rental Property Finder and Airbnb Income Calculator, you can easily find the best Airbnb properties for sale to invest in.
To start using Mashvisor’s real estate investment tools, sign up for a 7-day free trial today, followed by 15% off for life.
