If you’ve been on the fence about buying an Airbnb investment property in the US real estate market 2018, it’s time to take that leap.
Buying property for Airbnb real estate investing is one of the best ways to make money, no doubt. Unlike long term rentals, however, succeeding with short term rentals and earning Airbnb rental income is all about timing and seasons in the real estate market. That’s why if you want to be making money in real estate, NOW is the time to buy an Airbnb investment property.
The State of the US Real Estate Market 2018
It’s true real estate investors are buzzing about a seller’s market in the US real estate market 2018. Housing prices are up, housing inventory is down, and competition among real estate investors is fierce. Expect to pay a pretty price for an investment property in the “hotter” real estate markets.
Worried about finding an Airbnb investment property in a seller’s market? Those that use Mashvisor aren’t! Click here to find an Airbnb investment property today.
It may sound like bad real estate investing advice, then, to tell you that now is the time to buy an Airbnb investment property. As is common knowledge in the real estate market, the best time of year to buy a house for real estate investing is usually during the winter months. These are the times when a real estate investor can typically get a bargain when buying an investment property. The issue with the US real estate market 2018 is that it seems the winter months won’t be slowing down as usual. The real estate market is likely to continue to be a seller’s market.
You can always wait and see. The longer you wait though, you’ll be missing out on some of the best real estate investing opportunities out there. Rather than waiting, we suggest buying property for Airbnb real estate investing. Why? If a real estate investor does so right now, he/she will make a killing in return on investment with an Airbnb investment property. This is especially true compared to traditional real estate investing. It’s all thanks to seasonality.
Summertime and Your Airbnb Investment Property
Owning an Airbnb investment property during the summer months of the year (in the right real estate market of course) can be one of the best real estate investment strategies. With long term rentals, a real estate investor may find tenants for the rental property during the summer months. Even though a steady rental income will proceed, it will be nowhere near the amount of Airbnb rental income you could make during these months.
The reasoning here is logical. In the right real estate market, summer will result in the highest influx of tourism for most cities. Children are off from school meaning families will be traveling. Just take a look at this post: Airbnb Pricing Strategy: Consider These Events in 2018. All of the most popular events (festivals, concerts, conventions, etc.) this year that your Airbnb investment property can benefit from will be taking place after the end of May. These all add up to the highest Airbnb rental income you can imagine thanks to a very high Airbnb occupancy rate!
Wintertime and Your Airbnb Investment Property
While the summertime will be packed with Airbnb rental income raising events, the winter months (and fall) are full of the holiday seasons. Everyone is traveling here and there, whether on holiday breaks simply to get away or to visit family and friends. Airbnb investment property is showing to be a top choice for these travelers no matter what city you take a look at. For the Airbnb real estate investor, holidays=high Airbnb occupancy rate= high Airbnb rental income.
Don’t forget another reason you need to get into short term rentals now is the fact that an Airbnb real estate investor can raise the rental price higher in summer and winter months. Because guests need a place to stay more than ever during these times, raising the rent price won’t hurt your Airbnb occupancy rate. It will only result in a higher Airbnb rental income.
So, Why Buy an Airbnb Investment Property NOW?
There are two major reasons then why now is the best time of year to buy a house as an Airbnb investment property. The first one is that real estate market prices are only climbing. Wait any longer and you’ll be paying much more on not necessarily the best investment properties out there. The seller’s market is showing no signs of slowing down and real estate investors that continue to wait for the tides to change will only miss out on the best real estate investing opportunities.
The second reason is if you wait any longer, you’ll be missing out on all of the opportunities to make money with your Airbnb investment property. If you act now, you’ll be making Airbnb rental income in both the summer and winter months due to higher Airbnb occupancy rate. Wait and you might actually miss out on both opportune times.
What this means is a real estate investor needs to find an Airbnb investment property quickly. The typical investment property search can take months and by the time you find a profitable Airbnb investment property, get it set up and ready for renting out on Airbnb, it could be January 2019. While a real estate investor may see the occasional Airbnb guest from January to May, it’s likely the Airbnb investment property will be a negative cash flow property during those months. Not a good thing in real estate investing and likely to discourage you. This only means that you need a way to find an Airbnb investment property quickly. Well, we have just the thing.
How to Find an Airbnb Investment Property Quickly
We are coming into the summer months and real estate investors need to find an Airbnb investment property now. Searching through investment property listings on your own and attempting real estate investment analysis manually will take too long. You can turn to a real estate agent, but still, it can take time and not to mention, money. So what’s the best way to find an Airbnb investment property quickly? Mashvisor.
Mashvisor has a few real estate investing tools that can get you renting out a house on Airbnb by the end of the month. Two of these real estate investing tools are the Airbnb profit calculator (investment property calculator) and the property finder.
Airbnb Profit Calculator
With the Airbnb profit calculator, you can pinpoint the most profitable real estate markets, right down to the exact neighborhood for real estate investing. This is because the Airbnb profit calculator will show you metrics for real estate investment performance in a particular real estate market. These include cap rate, cash on cash return, Airbnb rental income, and Airbnb occupancy rate.
Once you find one of the best cities for Airbnb investment 2018, the Airbnb profit calculator will show you the same return on investment metrics for individual investment properties. Rather than spending time comparing a bunch of short term rentals, at this point a real estate investor can use the property finder.
The property finder allows you to specify all of the criteria you want in an Airbnb investment property. It then returns the top performing short term rentals based on the Airbnb occupancy rate, rental income, and return on investment. A real estate investor simply chooses the best of the short term rentals in that real estate market!
To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.
There. The investment property search is complete in a few minutes rather than several months. At this point in a seller’s market, you’ll need to move fast and make an offer. But you’ll know you’re getting a great Airbnb investment property that in the coming months will make a killing in Airbnb rental income!
The Best Cities for Airbnb Investment 2018
In order to allow you to act fast and start benefiting from renting out a house on Airbnb, we can show you a few promising real estate markets. Here are the best cities for Airbnb investment 2018. All of the data is taken from Mashvisor’s Airbnb profit calculator.
Palm Springs, CA
Median Property Price: $459,000
Airbnb Rental Income: $4,470
Airbnb Cash on Cash Return: 5.81%
Airbnb Cap Rate: 5.81%
Median Property Price: $199,000
Airbnb Rental Income: $2,198
Airbnb Cash on Cash Return: 6.78%
Airbnb Cap Rate: 6.78%
Median Property Price: $259,000
Airbnb Rental Income: $2,029
Airbnb Cash on Cash Return: 5%
Airbnb Cap Rate: 5%
Panama City Beach, FL
Median Property Price: $299,900
Airbnb Rental Income: $2,709
Airbnb Cash on Cash Return: 5.37%
Airbnb Cap Rate: 5.37%
Median Property Price: $240,000
Airbnb Rental Income: $1,913
Airbnb Cash on Cash Return: 3.69%
Airbnb Cap Rate: 3.69%
Median Property Price: $436,693
Airbnb Rental Income: $2,192
Airbnb Cash on Cash Return: 3.26%
Airbnb Cap Rate: 3.26%
Don’t Forget to always check Airbnb regulations by city. To start looking for and analyzing the best short term rentals in your city and neighborhood of choice, click here.
Start making money in real estate in the summer of 2018 by buying an Airbnb investment property now. Wait any longer and you’ll miss out on all that Airbnb rental income that other real estate investors will be enjoying!
For more details on the best cities for Airbnb Investment 2018, read: These are the Best Cities for Airbnb Investment 2018 and The 6 Best Cities for Airbnb Investment.