Learning how to find rental properties for sale to rent out on Airbnb is a key part of succeeding with this real estate investment strategy. Luckily, finding an Airbnb rental property for sale is not complicated. However, that does not mean it’s easy.
There are so many aspects to buying an investment property that beginner investors overlook causing them to end up losing money instead of making it. However, a successful vacation rental property is a few steps away if you know how to conduct a proper investment property search. So, here is our guide on how to find rental properties for sale to rent out on Airbnb:
#1. It Starts With Knowledge
Before you proceed to learn how to find rental properties for sale, you must learn a little about the business. Go to Airbnb.com and see for yourself what other Airbnb hosts are doing and how they’re running their investment properties.
See what it’s like to manage such an investment and figure out whether you are willing to commit in the first place. A good tip is to try and look up a few of the most successful Airbnb investors. You might be surprised at what you can learn from these people. After all, they are successful for a reason.
Learning about how finances work, in terms of investment property financing and pricing, is another aspect to explore. Aside from that, you want to conduct real estate market research. Look for locations, strategies, and real estate data.
#2. Where to Find Investment Property for Sale
So, you want to know how to find rental properties for sale, but do you know where to find them? If the answer is no, let us tell you.
There are so many real estate sources where you can find lucrative investment property for sale. For instance, check out your neighborhood for ‘for sale’ signs. You can also ask people around you if they know of any properties for sale.
Aside from these traditional methods, technology is on your side. Go ahead and check out a few real estate websites. For example, Mashvisor is an amazing platform where you can find the best short-term rentals for sale. You can also go to the Multiple Listing Services website.
Other than that, you can do the regular Google search. Simply type in ‘how to find a rental property,’ and you’ll have all the relevant websites listed for you.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
#3. Use the Right Tools
The right real estate investment tools will take you to the right places. Therefore, you must consider getting your hands on the following:
Heatmap Analysis Tool
The heatmap analysis tool is basically like a Google map service. However, instead of taking you to a specific destination, it helps you find the most profitable Airbnb locations by displaying neighborhoods with investment properties for sale on a map. Of course, it does so based on the specific criteria you provide.
First, you have to choose a city. Here are the 8 Best Cities for Airbnb Investment in 2019 to help you get started with choosing a location for your vacation rental. Then, you can use the heatmap analysis tool to identify profitable neighborhoods based on the listing price, cash on cash return rate, rental income, and average Airbnb occupancy rate.
In other words, you will have your neighborhood analysis already done for you. All you have to do is pick the neighborhood that makes sense to you.
Airbnb Profit Calculator
Now, if you want to know how to find rental properties for sale that will generate a good return on investment, the Airbnb profit calculator is what you need to be considering. Here are some of the tasks it performs:
- Should you rent out on Airbnb or does renting out a house traditionally make more sense? Deciding on a rental strategy is essential for your calculations. Sometimes, it does not make sense to find rental properties for sale to use with an Airbnb rental strategy when the math does not add up. The Airbnb profit calculator can show you which rental strategy will generate a higher ROI for the property of your choice.
- The investment calculator will perform a comparative market analysis and find you real estate comps to which you can compare your property. Therefore, you will make sure you are buying at market value as well as learning about the Airbnb pricing strategy in the location.
- Investment property analysis is another vital task a profit calculator will help you perform. Instead of using spreadsheets and manual calculations, this tool will save you time and effort and deliver the Airbnb analytics data most accurately.
Want to try out these tools? Start out your 14-day free trial with Mashvisor now.
#4. Get Acquainted with the Laws
Before buying an Airbnb property, you want to check with the laws. Airbnb regulations are different in each state and city. Depending on what location you choose, you must get to know the legalities of the Airbnb rental business.
Find out about taxes, limitations, as well as acts which constitute a violation and the consequences of these acts. It makes sense to consult a real estate attorney. But, if you are on a budget then go through it on your own.
#5. Hire a Real Estate Agent
Finally, as a novice investor wondering how to find rental properties for sale, you should work with an agent. Find an experienced real estate agent in the location of choice. Make sure they are qualified, tell them what you are looking for, and you are good to go.
You can also visit this Real Estate Agents Directory and start searching for the top real estate agents in the location of your choice.
As a beginner real estate investor, it is essential that you take your time with your investment property search. You can always find the best Airbnb properties for sale if you follow the right procedure and look in the right places.
So, the bottom line is: Acquire as much real estate education as possible before you get into the business. Although you may have successfully learned how to find rental properties for sale, managing them is not easy. Make sure real estate is for you and only then proceed with the rest.