You may have been learning of the high returns that Airbnb investment properties bring about and are ready to take advantage of the opportunity. Whether you are an experienced or a beginner real estate investor, finding Airbnb properties for sale has been made easier with the emergence of various real estate investment tools in recent years.
You might have concerns about how to find investment property, how to invest in Airbnb, and what the best cities for Airbnb are. This guide will help you determine which locations you should consider and what components you should take into account when looking for Airbnb properties for sale.
You’ll also learn about the metrics that will help you assess the profitability of your real estate investment. The following guide will help you with buying your first Airbnb rental property or even your seventh.
Related: 8 Steps to Finding an Airbnb Investment Property
Why Airbnb?
Watch our video below to find out if listing your property on Airbnb is the right choice for you:
Airbnb is an online marketplace that connects landlords with renters. The service emerged in 2008 and, thus far, has been a leading online platform for vacation rental properties. Travelers have come to favor Airbnb over hotels for the accessibility that it offers and the homey experiences it provides.
We’ve already mentioned the high Airbnb return on investment you can get with these rental properties. As an Airbnb real estate investor, you’ll also enjoy the advantage of listing your rental property online for free. When you are listing your short-term rental, you get to provide written descriptions, photographs with captions, and a user profile to allow guests to know about the host.
Airbnb hosts, moreover, get to choose the rent that they want to charge. Lastly, what makes Airbnb more favorable as opposed to traditional rental homes is the Host Guarantee Program. Airbnb’s Host Guarantee Program provides protection for up to $1,000,000 in damages to covered rental properties.
Airbnb Regulations
When you are looking for Airbnb properties for sale, you must consider Airbnb regulations as they can have detrimental effects on your rental property, if not planned or studied well. This is because, in recent years, many laws have emerged restricting the use of Airbnb as an investment.
Some problems have arisen with the use of Airbnb that have shaken the fears of many government officials and have therefore urged them to react accordingly. The potential to upend tenant-landlord relations, lack of oversight and enforcement of Airbnb-related tax collection, and the lack of adherence to zoning by-laws constitute the majority of these problems.
Because of such, many regulations have been put in place restricting and even banning the use of Airbnb in some areas. Therefore, it is important that you study regulations within a location very thoroughly. We recommend that you reach out to your local city council to inquire about the most recent regulations. Beware, regulations vary from one state to another.
Real Estate Investment Tools
Finding profitable rental properties should not be a difficult task particularly with the emergence of various investment tools as such as the property finder and profit calculator. When searching for Airbnb properties for sale, we recommend that you resort to the following real estate investment tools, as they will assist you in finding the best property and those that will derive the most profit
Related: Where Can You Find Airbnb Properties for Sale?
Rental Property Finder
A rental property finder is a tool used to browse investment properties in different locations to determine which ones have the most potential for profitability. The tool allows you to find investment properties for sale based on your preferences and search criteria.
Mashvisor’s rental property finder, in particular, utilizes a wide range of data comps, analytics, and financial metrics to provide real estate investors with lists of investment properties that have the highest potential for returns.
When searching for Airbnb properties for sale via Mashvisor’s rental property finder, first choose up to five cities and then set the filter for the Airbnb rental strategy. Then set your preferred budget, property type, and the number of bedrooms and bathrooms. The tool then recommends and provides you with lists of investment properties with a high profitability potential based on cash on cash return, capitalization rate, and occupancy rate.
Do you have a free Mashvisor account? Use our Property Finder to find lucrative investment properties that match your criteria in a matter of minutes!
Airbnb Rental Calculator
The Airbnb rental calculator is another real estate investment tool that has proven to be invaluable in helping real estate investors find the best Airbnb properties for sale. This tool allows real estate investors to analyze Airbnb rental properties and assess their profitability.
A real estate investor enters the assumed costs associated with an income property into the calculator, and using Airbnb data on the rental income, listing prices, and occupancy rates, the calculator estimates the return on investment and profits expected. By using this tool, Airbnb real estate investors confirm the viability of renting out on Airbnb as a short-term rental strategy.
To help real estate investors make good decisions about their vacation rental investment properties, the income calculator provides the following:
- Cash Flow: Cash flow is the difference between the monthly rental income and monthly expenses. Remember, you always want to have a positive cash flow!
- Airbnb Cap Rate: The cap rate shows a real estate investor what kind of return on investment they will receive by comparing the annual income to the property’s purchase price.
- Airbnb Cash on Cash Return: Airbnb cash on cash return shows you the return on investment in terms of how much money the income property makes compared to how much money you invest in it.
Top Cities for Finding Airbnb Properties for Sale
Below is data driven by Mashvisor’s real estate investment tools showing the top locations for finding Airbnb properties for sale.
#1 Lansing, Michigan
- Median Property Price: $102,100
- Monthly Airbnb Rental Income: $2,674
- Airbnb Cash on Cash Return: 11%
- Airbnb Occupancy Rate: 64%
#2 Tuscaloosa, Alabama
- Median Property Price: $211,542
- Monthly Airbnb Rental Income: $3,274
- Airbnb Cash on Cash Return: 10%
- Airbnb Occupancy Rate: 40%
#3 Dubuque, Iowa
- Median Property Price: $147,408
- Monthly Airbnb Rental Income: $2,984
- Airbnb Cash on Cash Return: 9%
- Airbnb Occupancy Rate: 43%
#4 Goshen, Indiana
- Median Property Price: $151,112
- Monthly Airbnb Rental Income: $2,793
- Airbnb Cash on Cash Return: 9%
- Airbnb Occupancy Rate: 66%
#5 Portsmouth, Virginia
- Median Property Price: $195,807
- Monthly Airbnb Rental Income: $2,571
- Airbnb Cash on Cash Return: 9%
- Airbnb Occupancy Rate: 58%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Related: The Ultimate Guide to Buying an Airbnb Property with Ease
Finding Airbnb properties for sale with the emerging real estate investment tools has been made easier. With Mashvisor’s rental property finder and Airbnb income calculator, you can easily find the best short-term rental properties to invest in.