Investing in real estate can be one of the best ways for investors to generate money. Though the idea of real estate investing might seem easy enough, it is much harder than most think. It is impossible to make money in real estate if you do not invest in a profitable location.
Purchasing a house in a location with no renters will end up costing you more money than you will make back. Before investing in any real estate property, investors much research profitable areas to ensure they will generate a positive cash flow.
There are many factors investors much consider when researching where to purchase an investment property. They need to decide the type of property they want for their investment, the location where they will invest, and a strategy to help ensure their investment will be profitable.
All of this can be tricky for any type of investor despite experience. That’s why Mashvisor helps investors with all things real estate investing.
In this article, we will explore the city of Leesburg FL, to determine if the Leesburg real estate market is a profitable area for real estate investing. This article will look at specific factors that will help show investors if Airbnb Leesburg FL is a good place to invest in.
If you are an investor seeking a profitable location for a short-term rental property, continue reading.
Is Airbnb Leesburg FL A Profitable Area?
As a real estate investor determining if a location is profitable or not there are two main factors that should be considered: the city’s tourism or attractions and how the city is predicted to perform. As a simple Google search can show what attracts people to any city, the data around Airbnb investing can be tricky and confusing.
Some investors might not know where to look for real estate data or not know if the data they are reviewing is reliable and accurate. We will look into the depth of all attractions and data to analyze if Airbnb Leesburg FL will help investors with making money in real estate.
Things to Do in Leesburg FL
Leesburg FL has many options of activities that attract many visitors. Some of their most popular attractions include nature-based activities. There are quite a few water activities such as kayak tours, paddle sport rental, fishing, and swimming in the surrounding lakes.
Leesburg FL is home to Silver Spring State Park in which all of these activities can be found at. Additionally, the park holds many hiking and biking routes for visitors to enjoy.
The city also is home to many popular five-star restaurants, cafes, and other great places to eat. There are plenty of places to shop and features to visit to get tickets to see local shows. Art galleries are also commonly found thought the town. Outside of Leesburg, there are plenty of smaller cities to explore that hold local shops and restaurants to enjoy.
Leesburg FL is also under an hour away from Orlando FL, which is one of the most populated cities in FL. Orlando is home to plenty of attractions that attract tourists from all around the world such as:
- Disney World
- Sea World
- Universal Studios
- Legoland
- Crayola Experience
- Beaches
With all of these attractions near and within close proximity, Airbnb Leesburg FL might be a great location for an investment property.
Why Should You Invest in Leesburg FL?
Before you are able to determine if the Florida real estate market is a good location to invest in, you need to look at the latest Airbnb data. This data will be a great indicator as to if the Florida housing market, will be a good investment location. Below are some of the current Airbnb data for Leesburg FL:
- Airbnb Rental Income: $2,097.01
- Airbnb Cash on Cash Return: 3.76%
- Airbnb Daily Rate: $125
- Airbnb Occupancy Rate: 60.86%
- Median Property Price: $323,184
- Average Price per Square Foot: $181.54
- Days on Market: 55 days
- Walkscore: 57
Using all of this data, investors can determine if Leesburg FL is a good location for an investment property.
What Are the Rules and Regulations on Airbnb Leesburg FL?
Before you decide if an Airbnb Leesburg FL is a good investment decision for you, it is important to review all of the laws around short term rental properties in the area. This is a good tip for investing in any area, as all locations will have different rules and regulations on their short term vacation properties.
In Leesburg FL, there are licenses and permits needed in order to operate an Airbnb property. Below are some of the requirements needed by the city before you openly list your short term rental property:
Taxes
All short term rental properties in Leesburg FL are required by the city to file and pay any and all applicable taxes if they meet the filing requirements.
A State Vacation Rental License
Any vacation rental properties in the state of Florida need to obtain a state vacation rental license before they list their short term rental property. In some cases, though an Airbnb will most likely be used as a vacation property, it may not qualify as one under the guidelines.
If you are unsure as to if your Airbnb qualifies as a vacation rental property, you will have to visit your local cities government office to find out for sure.
Note that there are also different applications based on what type of property you have. Condominiums, houses, and apartments all have different applications to fill out for your State Vacation Rental License.
Additionally, if your Airbnb property is also a unit in which you live ( the host resides in the property as well) then it does not qualify for a Florida State Vacation Rental License. If the host does not reside or will not be in the property, then your Airbnb may need this license.
Even if the host lives in their Airbnb property, check with local guidelines to ensure your short term rental property does not need any additional licenses.
Homestead Exemption
In the state of Florida, if the owner of property registers that property as their permanent residence, they may qualify for a tax exemption. This can get tricky around Airbnb rental properties though, so always check with the Florida Department of Revenue website for more information as to if your Airbnb qualifies for a homestead exemption.
Local Laws
No matter the laws or requirements of the state your Airbnb property is in, local laws might require additional licenses or permits in order for you to list your Airbnb property. If you have any questions regarding local Airbnb regulations, visit the city’s local office or consult with a local lawyer or tax professional.
Other
Other than any state or local laws that affect your Airbnb listing, you should always research other local regulations that could impact your short term rental property. Some other things to consider are HOA rules, condo board regulations, co-op rules, or even regulations established by Tennent organizations.
How to Choose the Best Airbnb Property in Leesburg FL?
Here a few things to consider when looking for the best Airbnb property to invest in in Leesburg FL:
1. Determine What Type of Property You Are Interested In
If you have decided that the Airbnb Leesburg FL housing market is a profitable place for your investment property, the first step is to figure out what kind of property you want to purchase. This is one of the most important decisions as it really determines what audience you are targeting when you list the property.
You should also consider what sort of activities and attractions are in the area to try to determine who is most likely to visit the location and search for a short term vacation rental.
For a town like Leesburg FL, there are many outdoor activities that attract its guests. Additionally, it is a great place to stay if you are interested in visiting Orlando FL, but don’t want to stay right in the middle of a huge tourist city.
It is likely that families will be looking to visit Leesburg, as the activities in the city are family-friendly, and Orlando is home to large family attractions such as Disney World and Universal Studios. As an investor who is trying to advertise to families, purchasing a family-style home as an Airbnb property might be your most profitable option.
It is difficult for families to stay in condominiums or apartments as they are usually larger and require multiple bedrooms and bathrooms. Investing in a house in Leesburg will ensure you are profitable on your investment.
Investing in an apartment or condominium could also be profitable in Leesburg, but it will likely attract a different audience. Smaller properties will usually attract single travelers who are traveling for business, or couples just looking for a smaller property with a single room. Keep these factors in mind when determining your investment property.
Note that different locations also have regulations as to what you can list as an Airbnb property. Check-in with local guidelines to see what specific guidelines your location has.
If you are still struggling to determine what type of property is best to invest in Leesburg, or any location, use Mashvisor’s Neighborhood Analytics tool to see reliable data on how certain properties perform in Leesburg FL. The Neighborhood Analytics tool collects data from Airbnb to help investors see how their property will perform in the area they are interested in.
This tool even lets investors customize their searches with their budget, property type ( condo, house, etc), number of bedrooms, and number of bathrooms to provide investors with the most accurate data. Mashvisor’s Neighborhood Analytics tool is great for investors when searching for profitable neighborhoods.
2. Set a Budget
As an investor, setting and sticking to a budget is essential. If you do not create a budget for your investment it can be difficult to make that investment profitable. Before you purchase a property, set a budget and consider these factors in your budget:
- Selling Price: How much did you purchase the property for
- Repairs & Remodels: Any updates or changes you need to make to the property to make it up to code or add more modern features.
- Closing Costs: Fees when purchasing a property. These typically amount to 2% of the selling price.
- Property Registrations: Any licenses or registrations needed in order to list your Airbnb.
- Other: Always keep some money in your budget for unexpected factors that could come up throughout the process.
3. Search for a Property
Once you have found a profitable location and set a budget for your investment, you can begin to search for an Airbnb income property in that area. There is a high Airbnb demand of Airbnb’s, which could make it difficult to find a good property to invest in.
If you are struggling to find an Airbnb Leesburg FL property, consider using Mashvisor’s Property Finder tool. This tool lets investors search through all properties in any location to help find the best one for them. The Property Finder allows investors to filter the results by:
- Property Type
- Budget
- Location
- Number of Bedrooms
- Number of Bathrooms
- Rental Strategy ( Traditional vs Airbnb)
Once you have found an Airbnb Leesburg FL, you can purchase it and begin investing.
4. Purchase a Property
Once you have found the perfect investment property for you, you can begin your real estate investing career. In some cases, it can be hard to determine how well your Airbnb will perform. To help guide investors through this, Mashvisor has created the Airbnb Property Calculator tool.
This tool shows investors exactly how their property is predicted to perform in their location. The Airbnb Calculator eliminates the need for confusing spreadsheets by providing investors with all of the data they need. This tool calculates your return on investment, cash on cash return, cap rate, and Airbnb rental income.
Additionally, the Airbnb Property Calculator provides investors with a short term rental strategy. This means it will calculate how the property will perform as an Airbnb property vs as a traditional property. This is a great way for investors to ensure they make the best decision in their property management.
When purchasing a property, it is also always smart to work with a real estate agent. Agents can help guide you through the transaction and provide any help you may need. To find an agent in Leesburg FL or any area, you can use Mashvisor’s Real Estate Agent Directory to search through agents’ real estate portfolios to find an agent that will work well with you.
To Recap
Investing in Leesburg FL can be a great way to make money in the real estate market. Mashvisor offers many tools to help investors through their property search. To access all of these tools, click here to sign up for a 7-day free trial of Mashvisor today, followed by 15% off for life.