It is no secret the Airbnb business is a very lucrative market with major financial incentives alongside a cutthroat competition.
If you cannot afford to buy a traditional real estate property to kickstart your real estate investing, consider renting your own home as a start or stay on the lookout for Airbnb properties for sale. The best real estate investments are congruent with key success factors, which include where you buy and for how much. If you buy in an unfavorable location for real estate, the odds will be against you. But, if you study the market trends and keep up with the housing market as a whole, you increase your chances of finding profitable real estate investments for the highest ROI. In this post, we focus on investing in Airbnb properties for sale in 2018 and onward.
Related: Four Things to Consider Before Purchasing an Airbnb Investment Property
Why Invest in Airbnb Properties This Year?
If you are wondering and pondering if you should invest in Airbnb in 2018, this blog is written specifically for you. According to Forbes, Airbnb is estimated to be worth at least $38 billion today and another important point to mention in tandem is the fact that people will always need a place to stay. This trend will not go out of style for both traditional real estate and short term rentals. If you can afford it, you should definitely go for it and consider Airbnb properties for sale in 2018.
Choose a prime location that is favorable for the Airbnb business in order to attract high occupancy throughout the year as well as give you the leverage to reap high rental income. Stay on the lookout for the Airbnb laws for your city of choice; if they are too strict, stay away because it will eat into your profits. If investing in Airbnb properties for sale is not feasible this year, choose to rent out your home to get used to the Airbnb business and Airbnb guests.
How Can I Find Airbnb Properties for Sale?
There is no MLS listing website for Airbnb properties. With this said, Mashvisor is the best online source for capitalizing on Airbnb properties for sale with backed up analytical assessment and guaranteed returns. Mashvisor gives real estate investors and agents the necessary data to decipher whether or not a rental property is deemed profitable. The data gives you average figures on rental income, cash on cash return, occupancy rates, and cap rates in any city you select across the US. But, if you do not know where to start investing, fret not! The Mashvisor heatmap tool helps investors hone in on the profitable neighborhoods for either traditional and/or Airbnb rental properties.
Related: Airbnb Profit Calculator: The Ultimate Real Estate Investment Tool
Perks of an Airbnb Business
- Airbnb hosts have the flexibility that traditional real estate landlords cannot afford
- Airbnb gives you the autonomy to set your own Airbnb pricing strategy, given it is competitive and in a high prime location
- Good reviews will get you more business, and the opposite is also true
- The competition is great, so personalize and customize your Airbnb guests’ experience to reap the rewards.
- You can always hire an Airbnb property manager if you are not a people person
Do you have a free Mashvisor account? Click here to use our Property Finder and find traditional and Airbnb properties for sale in a matter of minutes!
The Best Cities for Airbnb Properties for Sale in 2018
Here is the list of the top cities you should consider for investing in Airbnb properties for sale this year. Keep in mind, every real estate investor has different business goals, so make sure the decisions you make today are aligned with your long term goals.
Mill Valley, CA
- Median Property Price: $1,254,500
- Airbnb Rental Income: $4,220
- Airbnb Cash on Cash Return: 1.25%
- Airbnb Cap Rate: 1.25%
- Airbnb Occupancy Rate: 54.34%
Key West, FL
- Median Property Price: $948,095
- Airbnb Rental Income: $7,659
- Airbnb Cash on Cash Return: 5.22%
- Airbnb Cap Rate: 5.22%
- Airbnb Occupancy Rate: 66.78%
Santa Barbara, CA
- Median Property Price: $1,583,220
- Airbnb Rental Income: $4,522
- Airbnb Cash on Cash Return: 1.69%
- Airbnb Cap Rate: 1.69%
- Airbnb Occupancy Rate: 50.77%
- Median Property Price: $1,355,975
- Airbnb Rental Income: $7,257
- Airbnb Cash on Cash Return: 5.27%
- Airbnb Cap Rate: 5.27%
- Airbnb Occupancy Rate: 59.86%
San Francisco, CA
- Median Property Price: $1,652,435
- Airbnb Rental Income: $4,301
- Airbnb Cash on Cash Return: 1.04%
- Airbnb Cap Rate: 1.04%
- Airbnb Occupancy Rate: 62.19%
Cathedral City, CA
- Median Property Price: $314,840
- Airbnb Rental Income: $3,050
- Airbnb Cash on Cash Return: 5.26%
- Airbnb Cap Rate: 5.26%
- Airbnb Occupancy Rate: 42.19%
- Median Property Price: $554,560
- Airbnb Rental Income: $3,187
- Airbnb Cash on Cash Return: 2.52%
- Airbnb Cap Rate: 2.52%
- Airbnb Occupancy Rate: 42.27%
Related: The Ultimate Guide to Buying an Airbnb Property with Ease
If you are new to real estate investing, choose a short term rental strategy as a start and seek professional help in real estate agents as well as online sources like Mashvisor.com to help you find Airbnb properties for sale in shorter time. Just like any business, if you don’t study your prospective investments and make decisions for long term returns, you will lose more than you bargained for. Your motto in real estate investing should be maximum rewards for minimal risk.
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