As every smart real estate investor knows, location plays a major role when it comes to nearly everything in real estate investing. This is especially true for short-term (Airbnb) investment properties. The location of your Airbnb rental will determine the demand for the investment property, its profitability and overall return on investment. One of the hottest real estate markets for Airbnb rentals in 2018 is San Diego. Let’s explain why and in which neighborhoods real estate investors should consider buying an Airbnb San Diego investment property.
Related: Real Estate Investing: Traditional vs. Airbnb Investments
Why is Airbnb San Diego a Hot Real Estate Market?
San Diego continues to improve and enjoy a healthy economy. Thanks to its beautiful weather, over 70 miles of beautiful coastline, and many attractions (such as the famous San Diego Zoo, San Diego Zoo Safari Park, and SeaWorld San Diego), San Diego is the 11th most visited city in the US with almost 35 million people visiting the city each year!
As you would expect, this thriving tourism industry increased the demand for short-term rentals. Airbnb San Diego real estate investors are guaranteed a high Airbnb occupancy rate and can charge more for rent! This, in turn, made Airbnb San Diego a great real estate market.
A Quick Summary of San Diego Real Estate Market
Based on data from Mashvisor’s investment property calculator, investment properties in the San Diego real estate market are rather expensive. However, they offer high rental income for both traditional and Airbnb rental properties. Below are numbers regarding Airbnb San Diego real estate:
- Median Property Price: $745,637
- Airbnb Rental Income: $1,435
- Airbnb Cash on Cash Return: 0.96%
- Airbnb Cap Rate: 0.96%
Click here to find and analyze the best investment properties in San Diego right now!
The Best Neighborhoods to Invest in Airbnb San Diego Real Estate Market
- Pacific Beach
- Ocean Beach
- North Park
- East Village
- Mission Hills
- La Jolla
- Golden Hill
- Park West
- University City
For more in-depth information regarding cap rate, cash on cash return, median home price, and occupancy rates for these neighborhoods, read this: Airbnb San Diego 2018: Why and Where to Invest
Airbnb San Diego Real Estate Market – The Bottom Line
All in all, Airbnb San Diego offers amazing opportunities for real estate investors interested in this type of real estate investing. Thus, if you are thinking about buying an investment property to rent it out on Airbnb, you should definitely consider looking into the San Diego real estate market.
The above-mentioned neighborhoods are those in which real estate investors will find real estate investment properties in San Diego that are worth their money and generate a high return on investment, as calculated by Mashvisor’s investment property calculator.
Mashvisor is an online platform that provides real estate investors with the best real estate investing tools and data analysis for both traditional and Airbnb investments to make smart investment decisions. To learn more about our product, click here.
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