Airbnb investment properties could make you one of the most successful real estate investors, if you invest in the right city. The best cities for Airbnb investment 2018 are where you should start.
Before we list the best cities for Airbnb investment 2018, we need to talk about the deciding factor- cash on cash return. When investing in any type of rental property, return on investment (ROI) is important. The returns you can expect from an investment property are what usually drive the decision making when it comes to real estate investing. Every successful real estate investor knows how crucial it is to choose a profitable investment property. After all, you want to get your money’s worth and more. That’s the way to building your wealth.
Related: 10 Most Profitable Airbnb Locations for Cash on Cash Return
There are many performance metrics that can measure the profitability of an investment property. When looking for the best city for a certain type of real estate investment, you’re always looking for the city where this investment type typically performs well. In the case of Airbnb investment properties, the same applies. So far, the US housing market 2018 has proven to be quite favorable of Airbnb investments so you’re already on the right path. But where in the current housing market do Airbnb investment properties perform best? Here’s your answer.
Airbnb Investment Property and Cash on Cash Return
How to make money in real estate investing today? Easy. You just follow the trends. If you’ve been keeping track of real estate market trends, you know that short term rentals are where the money lies. With Airbnb’s popularity still on the rise, investing in Airbnb investment property continues to sound like a great idea. You probably agree if you’re reading this blog. That’s why you’re on the search for the best cities for Airbnb investment 2018.
Finding The Best Cities for Airbnb Investment 2018 with Mashvisor
We’ve put this list together for you based on high cash on cash return. Data collected by Mashvisor’s software from reliable sources such as MLS, Airbnb, Redfin, and more allows us to make accurate nationwide projections. This collected data also goes through our cash on cash calculator (which is a part of our Airbnb profit calculator) to find average cash on cash return on the city level. If you’re interested in quickly finding out what kind of returns a property will provide and what you need to outperform the rental market, check out Mashvisor. To start out your 14-day free trial with Mashvisor, click here.
Related: The Airbnb Profitability Calculator: The Best Friend of the Short-Term Rentals Investor
Now that you know how this list came to be, let’s get into it. Below are the best cities for Airbnb investment 2018.
Best Cities for Airbnb Investment 2018
The following data is provided by Mashvisor’s Airbnb profit calculator.
- Airbnb Cash on Cash Return: 1.87%
- Median Property Price: $508,469
- Price per Sq/Ft: $275.07
- Monthly Airbnb Rental Income: $2,935
Austin has been and will continue to be a tourist hotspot. It’s known for its hip culture and many attractions and events. An average cash on cash return of 1.87% might not seem attractive to you at first, but it’s our neighborhood analysis of Airbnb investment property in Austin that lands it on our list. You see, this number doesn’t equal the performance level of all Airbnb properties in Austin. Because we collect data from all properties, this includes the good and the bad. Luckily for you, Mashvisor’s tools have narrowed down a couple of neighborhoods in which Airbnb properties have experienced above-average cash on cash return.
- Airbnb Cash on Cash Return: 5.31%
- Median Property Price: $302,367
- Price per Sq/Ft: $108.94
- Monthly Airbnb Rental Income: $3,124
- Airbnb Cash on Cash Return: 4.67%
- Median Property Price: $296,195
- Price per Sq/Ft: $164.24
- Monthly Airbnb Rental Income: $3,001
The numbers just keep getting better and better as you continue your search. With Mashvisor, our tools help in every step of the process. We started out with a city, moved on to specific neighborhoods, and now we’re going to give you the specs of a top-performing property listed for sale in Austin.
- Location: Downtown- Austin
- Property Type: Townhouse
- Property Price: $240,000
- Airbnb Comparable Rental Income: $5,480
- Airbnb Cash on Cash Return: 15.07%
As you can see, this property is just one great example of how well Airbnb investment property is doing in Austin, Texas. To get more specific data on individual Airbnb property performance in Austin, conduct an investment property analysis with Mashvisor, and use our Property Finder tool, click here.
Austin Airbnb Regulations
In regards to Airbnb law in Austin, authorities have made the process very simple. If you want to operate your property as a short-term rental, all you need to do is have a valid operating license. Once you have the license, it only lasts for 12 months, so you’ll need to renew it every year if you want to continue operating.
Las Vegas, NV
- Airbnb Cash on Cash Return: 3.68%
- Median Property Price: $396,956
- Price per Sq/Ft: $190.75
- Monthly Airbnb Rental Income: $2,475
This second city should come as no shocker when talking about the best cities for Airbnb investment 2018. Las Vegas has been considered one of the best choices for buy and hold property investments, especially with the ability to market the property on Airbnb. All the vacationers in Las Vegas assure a high Airbnb occupancy rate. Another plus is the median property price being quite affordable. Investors will be happy to know that Las Vegas Airbnb investment properties come with high rental rates at such low prices. Here are the best neighborhoods:
- Airbnb Cash on Cash Return: 7.37%
- Median Property Price: $288,756
- Price per Sq/Ft: $155.23
- Monthly Airbnb Rental Income: $3,187
- Airbnb Cash on Cash Return: 7.07%
- Median Property Price: $391,351
- Price per Sq/Ft: $320.54
- Monthly Airbnb Rental Income: $2,748
Here’s are the details of just one of the many profitable Airbnb investment properties listed for sale in Las Vegas.
- Location: The Strip- Las Vegas
- Property Type: Condo/Coop
- Property Price: $107,000
- Airbnb Comparable Rental Income: $2,637
- Airbnb Cash on Cash Return: 14.95%
For more details on this property and others in one of the best cities for Airbnb investment 2018, Las Vegas, click here.
Las Vegas Airbnb Regulations
Las Vegas is the only city in Southern Nevada that allows short term rentals like Airbnb properties. As such, it’s the only city that has rules about how to run them. Las Vegas City Councilwoman Lois Tarkanian has been advocating for the rules for a long time. Tarkanian said the council might look at continuing to tighten the rules for Airbnb rentals.
Owning an Airbnb investment property in this city means always staying up to date on any changes to Airbnb regulations because there’s quite a few to keep track of. For example, short term rentals are not allowed in Clark County, Henderson, and North Las Vegas, but a quick search of Airbnb shows a number of houses, condos, townhomes, and private rooms are available in those jurisdictions making them illegal. That is why it’s very important to always check your city’s Airbnb laws and regulations before making an investment, as to not run into any issues.
Related: Top 3 Cities in the US with Strict Airbnb Regulations
Panama City Beach, FL
- Airbnb Cash on Cash Return: 5.08%
- Median Property Price: $380,826
- Price per Sq/Ft: $232.85
- Monthly Airbnb Rental Income: $3,252
Tourism in Panama City Beach continues to skyrocket, landing it this spot as one of the best cities for Airbnb investment 2018. Panama City Beach hosts many festivals and events making it a great spot to own a vacation home rental. With tourism expected to only continue rising, investors should start their search for Airbnb investment property in Panama City Beach. Here are the details of a potential investment listed for sale in PCM.
- Location: Panama City Beach
- Property Type: Condo/Coop
- Property Price: $149,900
- Airbnb Comparable Rental Income: $3,921
- Airbnb Cash on Cash Return: 10.38%
For more details on this property and others in Panama City Beach, click here.
Panama City Beach Airbnb Regulations
There aren’t many strict Airbnb regulations in PCB, but it’s always important to stay updated on Airbnb law. In Panama City Beach, Airbnb owners have recently faced some criticism from local hoteliers regarding the bed tax. Airbnb rentals in PCB are not excluded from the bed tax, but the county and Airbnb have yet to reach an agreement on how to go about paying the tax. So keep an eye out for any changes in that regard.
Related: Panama City Beach Real Estate: Why You Need to Own a Piece
Note: Don’t forget to check out Mashvisor to stay updated on the best cities for Airbnb investment 2018, and much more. Our tools can turn your investment property search from 3 months to 15 minutes!