Is AirBnb a good investment?

Is AirBnb a good investment? - https://www.jenniferobrienhomes.com/2022/11/22/is-airbnb-a-good-investment/

Is buying a home to AirBnb a good investment? Here are 3 AirBnb investing strategies and opportunities.

An AirBnb home is also known as a Short term or Weekly Rental for short let's call them STRs.

Identify the Best Places to Invest an AirBnb
Investing in STRs isn’t the same as investing in other types of real estate. You need to understand the STR regulations in your target markets. Some markets are more friendly than others, which is why you might ultimately invest in one market over another, even if all else is equal. For example, Charleston County has a Short Term Rental Ordinance which limits short term rentals in the county. They do allow each municipality to determine their own guidelines and regulations.

Know your Capitalization RateThere are certain figures specific to STRs that can help you uncover whether or not an investment will be as profitable as you hope; statistics like capitalization rate can reflect both the level of risk of the investment and your potential return. Learning these figures can help you spot a great place to invest.

Analyze Airbnb investments and real estate data in each market
Once you’ve decided on your investment’s location, it’s time to dive deeper into its neighborhoods, zip codes, and adjacent markets. Even after you’ve chosen a city, it’s important to analyze the factors within that city that can make your investment soar: competition, zoning laws, average daily rate (ADR), and more. Though you can find some of these figures manually, you can also use tools like MarketMinder™ to quickly generate the data you need.

Investing in Airbnbs can be a great way to expand your income opportunities. Though there is risk involved, there are also sizable returns; many investors see a return of 40% or more. Doing your research, making strategic investments, and continually optimizing your listing with the right data can help increase the return on your investments.

If you’re interested in this form of real estate, please give me a call. I have a lot more information to share with you!

Jennifer O’Brien
(610) 283-0867
www.jenniferobrienhomes.com
[email protected]