BEST Airbnb Investing Locations 2021

Watch today's video to find out the best Airbnb locations to invest in for 2021!

FREE TRAINING:
Earn a full-time income managing other people’s properties on Airbnb:

https://bit.ly/3yvrT7T

FREE TRAINING:
Become a top performing host on Airbnb:

https://bit.ly/3xp97Pi

FREE DOWNLOAD:
Get your free profitability projection tool:

https://bit.ly/2VcQ3ph

AIRBNB FOR DUMMIES:

https://bit.ly/3hBo766
Book a call with me to start investing in Airbnbs:
https://calendly.com/jamessvetec/bnb-investing

The area that I am most actively investing in right now is in cottage country, a couple hours outside of Toronto. What I look for when I look for a market is a few things. First, finding a place that is going to be Airbnb friendly from a regulatory and a taxation perspective. On the regulatory side, I like to find areas that have established regulations around short term rentals. Any area that doesn't yet have a stance on short term rentals, I see that as a bit of a red flag. I don't want to be on the losing end of it if they decide that they're anti short term rental.

The other thing I really like to look forward to is investing in markets that are reliant or dependent to a certain extent on the short term rental industry. I like to give the example of downtown Toronto as being a place that I don't really think is a great opportunity from a regulation standpoint. Downtown Toronto is not reliant on short term rentals. Hotel lobby groups would rather see people gone from the short term rental world. Whereas if I invest in cottage country, all the small businesses in that more rural location depend on the tourism industry. For me, that's a really safe bet from a regulation standpoint, because if they were to ban short term rentals in that area, then their whole local economy would really suffer. So it's very unlikely that would happen.

Then I also like to look at where I'm going to be taxed most advantageous. From state to state, there are going to be different differences on how you're going to be taxed on your income. You're going to have different areas that are going to charge a lodging tax or short term rental tax, other areas that charge different rates of tax for your income at the state level. You always want to be mindful of that. At the end of the day, it's about how much money you keep and your taxes are really going to play into that.

Then, you want to crunch numbers and look at opportunities. I like to be in a place that's also insulated in the types of guests it's attracting. International travel can be pretty flimsy because international travel can grind to a halt in different situations. I like to focus on areas that attract a lot of local and domestic visitors. Cottage country is a great option for me. Or mountain cabins tend to be about the same, nice beach houses. Vacation homes where you can think of a family going to get away from the city.

I also want to look for properties that are good for larger groups. That precludes me from a lot of different markets. In really simple terms, in cottage country, I'm not going to pay a huge premium when I jump from a three bedroom property to a four bedroom property. But how much I make on Airbnb with a four bedroom property versus a three bedroom property is a bit more money because it attracts larger groups.

Now as far as specific locations to invest in, I recommend looking somewhere relatively local to you just because you'll tend to know that area well. Or if it's somewhere that you vacation too often. I would actually argue there are some disadvantages to being very close to your investment properties. People tend to take on a more active engaged role and to let the investment property suck up a lot more of their time. I advocate for investing in a property where it's very inconvenient for you to actually get there, because it's gonna really force you to put the systems in place to turn this investment passive the way that it really should be. Also once you build up your Power Team in that area, your cleaning team, your renovation experts, your maintenance people, you really want to leverage them on multiple properties.

If you can buy a property that is going to bring in a fifth or a quarter of what it's worth every year in gross bookings, that's going to be a knock out of the park. That's where with even just one or two properties, you can be completely independent financially.