Many new investors are contemplating buying an Airbnb for sale because a surge of demand from short-term rental guests is expected this year.
Table of Contents:
- What’s an Airbnb Investment Property?
- Why You Should Invest in Airbnb for Sale
- Investing in Airbnb Properties vs Traditional Rentals
- How to Find Airbnb for Sale
- Top 10 Locations to Find Airbnb Properties for Sale
- Why Mashvisor Is the Best Source for Airbnb for Sale
Many short-term rental investors earn a significant amount of profits from Airbnb investing. The Airbnb business was adversely affected by the pandemic that started in early 2020. However, vacation rentals are slowly going back to normal following the lifting of the travel restrictions and the reopening of the tourism industry.
However, some investors are reluctant to acquire vacation rentals, given that this kind of real estate investment is purely seasonal. But the truth is, investing in an Airbnb house is not as scary as some people might think. Just like any type of investment, it can be quite profitable, especially when done correctly.
Choosing a location that tourists typically frequent is very important when it comes to Airbnb investing. For example, buying an Airbnb for sale in Florida can be a good idea because the Sunshine State is a favorite tourist destination.
New investors may have many questions about Airbnb investments. For instance, some wonder how you find an Airbnb property for sale. If you’re planning to invest in a vacation rental house, it’s crucial to find out if your property is worth listing on Airbnb. So how can you find a profitable Airbnb property? Are there any available online tools that can help you spot the right house for sale?
What’s an Airbnb Investment Property?
Before looking for Airbnb properties for sale, it’s essential to understand what an Airbnb investment property is and how it works.
Airbnb is an online vacation rental platform that lists short-term rentals and allows guests to book a stay in a short-term rental house. Travelers looking for short-term lodging use the Airbnb platform to search for properties available for rent.
Owners of vacation rentals can list their properties on the platform after getting the necessary permits from the city government. The rates posted with the listings are set by the property owner or Airbnb host.
Keep in mind that Airbnb does not own any one property listed for rent on the platform. It simply operates as an intermediary between the rental property hosts and the renters.
Investing in a Real Estate Property Exclusively for Airbnb Purposes
Buying a house for sale and using it specifically as a short-term rental property is a sound investment strategy. An Airbnb investment property is a house that is listed for rent on the Airbnb platform.
For instance, you may use your spare room in your house to earn extra money by renting it to guests. You can have that room listed on the Airbnb platform for guests to book. The room that was just a useless space in your house now becomes an Airbnb investment property.
Now you can buy another property for sale and have it listed as for rent on Airbnb. That house you buy is your new Airbnb investment property.
As a potential Airbnb investor, you can rent out your Airbnb property for only a few days or months at a time. Think of it as a scaled-down hotel. You can list any extra rooms in your own house for rent on the Airbnb platform. You may also buy an Airbnb for sale as a separate investment property and turn it into a full-time vacation rental house.
It’s important to note, however, that the short-term rental rules and regulations may vary from city to city. While some investors can rent out another house legally as an Airbnb property, other cities don’t allow non-owner-occupied vacation rentals. Before buying any house for sale as a vacation rental property, you must verify Airbnb laws in your preferred location. This is to ensure that you comply with all the legalities of operating a short-term rental property.
Why You Should Invest in Airbnb for Sale
There are many reasons why both new and seasoned investors are buying Airbnb properties for sale, such as the following:
- A growing number of users: Currently, there are over 150 million Airbnb users worldwide. The number of Airbnb users in the United States is expected to reach 45.6 million in 2022. Buying a house for sale and converting it into a vacation rental property will expose it to millions of users on the Airbnb platform. The huge number of users means that advertising on Airbnb can help you find renters with less effort.
- More market share than hotels: Most individuals nowadays prefer Airbnb and other similar online home-sharing platforms. They find these properties cheaper and “friendlier” than staying at a hotel. This makes investing in a house for sale and turning it into a vacation rental a wise move for investors.
- Passive income: Investing in for-sale properties as short-term rentals for Airbnb listings is a great opportunity to earn passive income. The platform allows you to easily market and manage your properties without having to leave the comfort of your home or office.
Investing in Airbnb Properties vs Traditional Rentals
Investing in Airbnb and traditional rentals is a great way to earn substantial returns. In general, traditional real estate investing is when one purchases a for-sale property and leases it out to tenants for the long term. On the other hand, Airbnb properties are for short-term stays, usually 30 days or less. Before checking out Airbnb properties for sale, it’s important to know the major differences between the two real estate investing strategies.
In traditional real estate investing, the laws and regulations are more transparent. Also, as a landlord, you need to be in touch with tenants to collect rent, do maintenance checks, and make repairs. Traditional rentals allow you to deal with the same tenants for the long term.
On the contrary, when you’re looking into Airbnb properties for sale, realize that you need to know and understand the short-term rental laws in your specific location. For example, some cities prohibit individuals from leasing out their residence area for less than 30 days. Other locations require that the owners should reside on the same property during the guests’ stay. These laws vary from city to city, so it’s crucial to learn the rules before buying an Airbnb property for sale in a particular area.
But don’t let the legal restrictions for renting out an Airbnb property scare you away. Airbnb can sometimes be more profitable than traditional real estate investing, depending on your chosen area. In addition, investing in Airbnb for sale also means that you get to meet lots of different people! You’ll get exciting stories from renters of different backgrounds from all over the country and the world.
Making the Sale
Yes, investing in Airbnb properties for sale can let you earn a good income on the side. However, you also need to work hard to ensure that you get good reviews from your customers. You are most likely to earn good ratings when you’re hospitable and go the extra mile to ensure customer satisfaction. It can help increase your occupancy rate and charge a higher rate per night, resulting in higher returns.
Keep in mind that one booking is already equivalent to one sale for you as an investor or Airbnb house owner. The more bookings you get on your short-term rental house, the faster you get your ROI on rental property. Focus on making one successful sale at a time. As you do so, you will generate enough momentum to keep your Airbnb business going.
When you’re looking for Airbnb properties for sale, make sure to choose an area that receives lots of visitors to keep the flow going. It’s worth noting that vacation rentals are usually seasonal. Thus, it is harder to make a sale as an investor during off-peak seasons. All the more you should put in the work.
On the other hand, if you invest in a location that’s visited by tourists all-year-round, you won’t have to worry too much about vacancies. Choosing a location with warm weather most days of the year is also a good idea. This is the reason why there is a high demand for Airbnb properties for sale in Florida.
At the end of the day, it is still all about the location. So when looking for properties for sale, you first need to consider the rental market they’re in.
How to Find Airbnb for Sale
Now that you’ve established that investing in Airbnb can be profitable, the next step that you need to take is to determine how to find Airbnb properties for sale. First, you need to know that there is no specific MLS database or a listing website that only lists Airbnb for sale. To find a home for short-term rentals, you need to search for a for-sale property the way you would with any investment property.
Here are a few ways that can help you find an Airbnb property for sale:
1. Drive Around the Place or Neighborhood
If you’re up for an adventure, you can manually look for an Airbnb for sale by driving around the area or neighborhood of your choice. You then go house-to-house to ask homeowners if they’re selling their properties or if they know of ones for sale. Of course, this can be a tedious task, and you won’t be sure to find any luck immediately.
2. Real Estate Agents
Once you’ve determined your preferred location for your Airbnb investment property, you can work with a local real estate agent to get a list of the properties for sale in the area. A real estate agent can assist you in finding a good match based on your budget and property type preference.
Some real estate professionals are able to access listings that are not yet posted for sale. However, you need to build rapport with the agent first because they will not easily release their listings to any client.
3. Online Sources
One of the easiest ways how to find Airbnb properties for sale is to go to various online sources. There are several internet listing websites available that can help you access the most recent for-sale inventory within your chosen location.
It’s worth noting that certain websites require you to pay a subscription fee before they give you access to their listings. However, not all online sources are created equal, so it’s necessary to be selective and only work with the one that can give you the best value for your money.
Top 10 Locations to Find Airbnb Properties for Sale
Looking for the right vacation rental property for sale is not as easy as it seems. There are several things you need to take into consideration before you settle for a location. There are even more things to factor in before you can finalize buying a house for sale. If you want to convert a house for sale into an Airbnb property, you need good numbers on the following:
- Median Property Price
- Average Price per Square Foot
- Monthly Airbnb Rental Income
- Airbnb Cash on Cash Return
- Airbnb Cap Rate
- Airbnb Daily Rate
- Airbnb Occupancy Rate
The following top 10 list is ranked based on cash on cash return and not the cap rate. While most investors use cap rates to determine a property’s profitability, the metric also assumes that the purchase was made in all cash. Howeot everyone can afford to buy a house for sale in an all-cash transaction.
Cash on cash return takes into account financing as it only factors in the total amount of cash spent on the property purchase. This makes calculating the return on investment more accurate if you cannot make a full-cash payment on a property.
That said, here are the 10 top locations to buy Airbnb properties, according to the latest data from the real estate website Mashvisor:
1. 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
2. Arlington Heights IL
- Median Property Price: $394,305
- Average Price per Square Foot: $244
- Days on Market: 40
- Monthly Airbnb Rental Income: $2,543
- Airbnb Cash on Cash Return: 7.76%
- Airbnb Cap Rate: 8.22%
- Airbnb Daily Rate: $121
- Airbnb Occupancy Rate: 78%
- Walk Score: 82
3. Raeford NC
- Median Property Price: $300,829
- Average Price per Square Foot: $153
- Days on Market: 61
- Monthly Airbnb Rental Income: $2,995
- Airbnb Cash on Cash Return: 7.76%
- Airbnb Cap Rate: 8.02%
- Airbnb Daily Rate: $122
- Airbnb Occupancy Rate: 65%
- Walk Score: 61
4. South Lyon MI
- Median Property Price: $502,374
- Average Price per Square Foot: $225
- Days on Market: 171
- Monthly Airbnb Rental Income: $2,824
- Airbnb Cash on Cash Return: 7.65%
- Airbnb Cap Rate: 7.99%
- Airbnb Daily Rate: $163
- Airbnb Occupancy Rate: 51%
- Walk Score: 75
5. Deland FL
- Median Property Price: $388,216
- Average Price per Square Foot: $210
- Days on Market: 52
- Monthly Airbnb Rental Income: $4,440
- Airbnb Cash on Cash Return: 7.61%
- Airbnb Cap Rate: 7.79%
- Airbnb Daily Rate: $149
- Airbnb Occupancy Rate: 70%
- Walk Score: 2
6. Barstow CA
- Median Property Price: $303,665
- Average Price per Square Foot: $207
- Days on Market: 53
- Monthly Airbnb Rental Income: $3,238
- Airbnb Cash on Cash Return: 7.45%
- Airbnb Cap Rate: 7.68%
- Airbnb Daily Rate: $104
- Airbnb Occupancy Rate: 83%
- Walk Score: 61
7. Winterville NC
- Median Property Price: $333,136
- Average Price per Square Foot: $146
- Days on Market: 133
- Monthly Airbnb Rental Income: $3,511
- Airbnb Cash on Cash Return: 7.21%
- Airbnb Cap Rate: 7.40%
- Airbnb Daily Rate: $115
- Airbnb Occupancy Rate: 77%
- Walk Score: 44
8. Delaware OH
- Median Property Price: $472,927
- Average Price per Square Foot: $198
- Days on Market: 94
- Monthly Airbnb Rental Income: $4,364
- Airbnb Cash on Cash Return: 7.15%
- Airbnb Cap Rate: 7.31%
- Airbnb Daily Rate: $176
- Airbnb Occupancy Rate: 73%
- Walk Score: 86
9. Midlothian VA
- Median Property Price: $476,208
- Average Price per Square Foot: $206
- Days on Market: 150
- Monthly Airbnb Rental Income: $4,907
- Airbnb Cash on Cash Return: 7.06%
- Airbnb Cap Rate: 7.19%
- Airbnb Daily Rate: $203
- Airbnb Occupancy Rate: 63%
- Walk Score: 42
10. Florence KY
- Median Property Price: $253,484
- Average Price per Square Foot: $169
- Days on Market: 90
- Monthly Airbnb Rental Income: $2,838
- Airbnb Cash on Cash Return: 7.03%
- Airbnb Cap Rate: 7.27%
- Airbnb Daily Rate: $152
- Airbnb Occupancy Rate: 76%
- Walk Score: 23
Why Mashvisor Is the Best Source for Airbnb for Sale
Mashvisor is an online real estate analytics platform that offers its users a massive database of for-sale listings. It also gives them complete real estate market data and analysis for each and every property listed on the platform. Mashvisor’s database offers a wide selection of inventory from all over the United States. You no longer need to go out of your home to find the perfect Airbnb properties for sale. Moreover, the platform also provides the important data that every investor needs before buying an Airbnb investment property.
When you use Mashvisor to search for an Airbnb for sale, you will see an overview of the average projected cash on cash return, cap rate, and rental income of a selected property. The figures are available not only for Airbnb rental strategy but also for traditional rentals. This allows you to compare which rental strategy is best for a certain income property. With this information, you can decide whether or not a property will be worth listing on Airbnb.
Mashvisor is also very easy to use. All you need to do is type the city or neighborhood where you plan to invest in, and the average Airbnb cash on cash return will show up for the entire area or neighborhood. It will then help you narrow down which areas to look for.
Interested in using Mashvisor to find your perfect Airbnb investment property? Sign up today for a 7-day free trial, followed by 15% off for life.