Mashvisor Real Estate Podcast: Episode #19 (Transcript)

Top 5 Rental Properties This Week: May 30th-June 5th, 2021

In the nineteenth episode of the Mashvisor Real Estate Podcast: Top 5 Rental Properties This Week Mike Richardson, the star of the Mashvisor Investor Consultant Team, presents and analyzes the 5 top-performing Airbnb investment properties currently available for sale in the US housing market. These properties are handpicked by Mike to generate positive cash flow and high rate of return, right away.

Real Estate Podcast Transcript

This is the Mashvisor Real Estate Podcast: Top 5 Rental Properties This Week, Episode Number 19.

Hey, guys! This is Mike Richardson, Senior Investor Consultant and Product Specialist here at Mashvisor.

Welcome back to episode number 19 of our real estate investing podcast – Top 5 Rental Properties This Week. I am so excited to have you here with me today so that I can tell you all you need to know about the most lucrative real estate deals currently available on the market.

It’s already June, and you know what that means. The real estate market is heating up with activity. More and more homeowners are listing their homes for sale. Now, summer is traditionally the busiest time in the US housing market.

And this year that’s great news for investors who are thinking of buying a new property. The US market is a hot seller’s market at this point, where inventory is low, competition is tough, and good deals are everywhere. So investors have a lot to benefit from these extra homes for sale which are showing up every day.

If you are new to real estate investing or are considering investing in an investment property, you might be feeling a bit lost and not sure where to start. Traditionally finding good deals with positive cash flow and high rates of return takes months of research and analysis. And the market being so hot, all deals will be gone before you’ve had the chance to do your research.

But I am here to help you. In the next 20 minutes or so, I will take you directly to the 5 best real estate investment deals that you can currently find on the US housing market.

As usual, I’ve used the Mashvisor platform to find the top-performing properties in some of the best markets for investments. I used the many different filters available on the Mashvisor software to look at different markets, to look for different price points, to look at different property types, all the while searching for the properties which offer the highest rate of return.

Mashvisor makes it so easy for everyone to find a property which matches their expectations and requirements. With just a few clicks of a button, you can stand on equal footing with experts who have spent decades in the real estate industry.

This week, guys, we are gonna look at Airbnb rental properties exclusively. For the past decade, since the establishment of the Airbnb platform, short-term rentals have been more profitable than traditional rentals. The main reason is that you rent those on a nightly basis, so you can set up a very flexible pricing structure so that you optimize both the Airbnb daily rate and the Airbnb occupancy rate.

With traditional rentals, you don’t have that flexibility. Once you set up your rental rate, you can only adjust it with a certain percentage each year, or you have to wait to change tenants to raise rent significantly.

Also, with Airbnb you can capitalize on public holidays and popular events in the area.I know Airbnb hosts who have been able to make more over 4th of July or over the Superbowl weekend than traditional landlords will make over a few months in the same area.

And if you are worrying about the slowdown in the vacation rental industry because of the pandemic, let me assure you that there’s nothing to worry about. We at Mashvisor have been monitoring the impact of the pandemic on the Airbnb business since the very beginning. And while it’s true that there was a major slowdown at the beginning, in September of last year the national average Airbnb occupancy rate was already on the road to recovery.

And things are looking even better now with the rollout of the vaccine and the relaxation of travel bans and other restrictions.

Actually a few weeks ago the Airbnb CEO said that the Airbnb platform will need millions of Airbnb hosts in the coming months in order to catch up with the growing demand. As we are emerging from the pandemic, many people will be eager to travel and to catch up with time away from home. Not to mention the millions of new people who are now working remotely. This new reality opened a whole new niche for Airbnb investors. Many are now looking to rent Airbnb rentals for a few weeks or even a couple of months in order to work away from home.

So, guys, 2021 is a great time to expand your Airbnb business if you are already a host, or you’re considering buying your first Airbnb property. Things are looking good for this strategy.

One last thing before we start with the top 5 rental properties of this week. I’d like to assure you that we at Mashvisor are not involved in the sale of the properties listed on our platform or any other properties. We are not a brokerage, so we don’t make money from buying or selling real estate. Instead, we do help you with the analysis and finding the potential of areas and properties so that you can make fast and confident investment decisions.

So, guys, let’s take a look at the 5 most profitable real estate investing opportunities in the US:

First on our list is in Austin, Texas.

As the capital city of the State of Texas, Austin is a busy city which has so much to offer to visitors. All of the Texas real estate market is a great place for investors this year, but Austin is definitely one of the top destinations for investors, especially when it comes to Airbnb. Tourists are attracted to the live music scene, the parks, the lakes. You have opportunities for hiking, biking, swimming, and boating. The University of Texas campus also brings in thousands of visitors during the homecoming weekends, graduation, and other events. The diverse, strong economy attracts millions of business travelers as well.

Austin is currently a seller’s market. The median property price is as high as $733,000, but I’ve been able to find you a property which is listed for much less. So, if you’d like to buy a property in Austin, you really need to work with a really good real estate agent. Homes for sale are few, buyers are so many, so you’ll need all the help that you can get.

While Airbnb rentals are legal in Austin, they are strictly regulated. So you may want to work or think about hiring a professional management company. This will help you run a legal and profitable vacation rental business.

The property that we have for you today is a single-family home. The address is 7013 Brick Slope Path, and that’s in Mckinney, Austin, Texas. The zip code is 78744. The asking price is $399,999, offering you 4 beds, 2 baths, 1,724 square footage.

The property is located in a great part of town. It’s a walking distance from Easton Park. The area itself will bring so many attractions.

The property’s been on the market for 25 days at this point. It has a great Airbnb occupancy rate, and the market has also a strong occupancy rate.

The optimal strategy for this specific neighborhood is Airbnb and around 4 beds. The average occupancy rate is around 75%, so you’re talking about a market that offers you very, very high occupancy rates.

The potential rental income for this property is $5,524, based off Airbnb data that we’ve extracted from the Airbnb website to help us analyze this deal. We do account for recurring expenses such as insurance, utilities, management fees, maintenance, and property taxes, and after all of these expenses, when putting 20% down, your cash flow is $1,697. That puts your cash on cash return at 22.14% and your cap rate at 8.96%.

This is a huge difference between the Airbnb side and the traditional side. Your cash on cash with that same 20% down through a traditional strategy would only be 2%. So you’re talking about a major difference between Airbnb and traditional.

This is one of those deals that really stand out, and if you are considering the Texas market, I highly recommend to look into Austin. But to really be profitable in Austin, you will need a vacation rental. So, don’t miss out on this deal. This property will not stay on the market for too long.

Next on our list is in Sevierville, Tennessee.

Now, Sevierville in eastern Tennessee is probably not a market that you think about when you think about Airbnb rental properties, but it should be. It’s such a great place for this strategy. You have the vibe of a nice, calm small town with warm, welcoming residents. You have the Great Smoky Mountains National Park with attractive forest trails, with waterfalls. It’s a perfect getaway for families looking for outdoor activities during their vacation.

Home values in Sevierville have been on the climb for a couple of years. So if you hurry up and buy a property there, you’ll benefit from above-average appreciation in the coming years. This means that you will be making money not only through the short-term rental properties but also long term through appreciation.

Short-term rentals are legal in Sevierville, so that’s great news as well.

The property that we have for you today is a single-family home. It’s located in a great area of town. The address is 1920 Niagara, and that’s in Sevierville, Tennessee. The zip code is 37862. The asking price is $485,000, offering you 4 beds, 2 baths, 2,400 square footage. This is a great property. It’s only been on the market for 38 days.

To give you some background on the area, the optimal strategy for this market is an Airbnb, and the number of bedrooms – the more you increase the amount of bedrooms, the better capability you have in performing. The average Airbnb occupancy rate in this area is 65%.

Your potential rental income for this property would be $5,987. With putting 20% down and paying your monthly mortgage of $1,588 and all of your recurring expenses, you’d be cash flowing over $2,000 a month. That would put your cash on cash return at 23.72% and your cap rate at 9.07%. And this is all done through a 57% occupancy rate.

So this is a deal that you don’t wanna miss out on. It will perform really well. The cash on cash return is a number that you don’t typically see with traditional investments.

So if you’re exploring Airbnb, this is a market that you should absolutely look at. Don’t miss out on this deal. So feel free to check out the property in the show notes below.

Third on our list is in Naples, Florida.

All of the Florida real estate market is great for investing in short-term rental properties, but Naples is one of the best locations for this rental strategy. Naples is actually one of my favorite cities. The golf courses, the shopping experience, the fishing locations, and the dolphin spotting opportunities make Naples a popular destination throughout the year. Not to mention the sandy beaches and the calm waters of the Gulf of Mexico. If you’re looking for a vacation spot in a beach town, Naples has everything that you’re looking for.

And that’s why it’s such a great place for investors interested in Airbnb properties.

Because it’s such a popular investment destination, Naples has a high property price. We’ve estimated the median price of listings at $725,000, but we have been able to find you a deal which costs you much less than that. The average Airbnb nightly rate is around $279, that’s almost $300 for a single night at your Airbnb.

Some counties have very, very strict laws when it comes to Airbnb laws. So you really need to work with a professional rental property manager in order to stay within the law and still run a profitable business.

The property that we have for today is a single-family home. The address is 2832 Inlet Cove LN W, and that’s in Pine Ridge, Naples, Florida. The zip code is 34120. The asking price is $399,999. It offers you 4 beds, 2 baths, 1,942 square footage. It’s located in a great area. It’s been on the market for 22 days.

The average Airbnb occupancy rate in the market or this specific neighborhood is 56%.

This property has a potential rental income of $5,790. With its monthly expenses at $2,482 and your monthly mortgage of $1,288 after 20% down, you will be cash flowing over $2,000. This will put your cash on cash return at 26.34% and your cap rate at 9.92%. It’ll have a potential occupancy rate of 65%.

This is a deal that you really don’t wanna miss out on. It’s a great area to consider buying an Airbnb. So, don’t miss out on a deal like this.

Next on our list is in Philadelphia, Pennsylvania. Philadelphia is not only the 6th largest city in the US in terms of population but also one the best and most popular and most visited cities across the nation. It has so much to offer to visitors. The rich history is the main attraction of millions of tourists each year. The Liberty Bell and the Independence Hall are by far the most popular attractions in Philly. The Philadelphia Museum of Art is the cultural hotspot in the city. These factors make Philadelphia an ideal destination for an Airbnb property.

With regards to the current status of the real estate market, Philly is a hot seller’s market, just like most of the country. However, property prices are still relatively affordable. We at Mashvisor estimated the median value of real estate listings at $406,000. This is above the national average, but is quite affordable for a major city like Philadelphia.

But keep in mind that the property prices are on the rise, so if you think that Philadelphia might be the right market for you, hurry up, before prices go even higher. Because the market is so hot at this moment, I’d really recommend that you work with an agent. They will help you make a good offer, negotiate favorable terms, and close quickly.

In terms of legality, Airbnb rentals are legal in Philadelphia, which is not the case in many other major cities. However, they do face some restrictions and regulations, so you might want to consider hiring a short-term rental management company to help you comply with all the rules without sacrificing your return.

The property that we have for you today in Philadelphia is an outstanding Airbnb deal. The address, or, it’s a townhome, and the address is 2236 S 19th Street. That’s in Philadelphia, Pennsylvania. The zip code is 19145. The asking price is only $270,000, and it will offer you 4 beds, 2 baths, 1,364 square footage.

It’s located in a great part of town. This specific neighborhood is geared towards Airbnb. The average Airbnb occupancy rate is 66%.

The property has been on the market for only 8 days. It has the potential rental income of $4,185. With your recurring expenses at $1,761 and putting 20% down on a deal like this, you’ll be paying off your monthly mortgage, your recurring cost, and cash flowing $1,500. That puts your cap rate at 10.77% and your cash on cash return at 29.81%.

That’s an outstanding cash on cash. The moment that we have a cash on cash above 25%, we’re looking at deals that you do not wanna miss out on. This is an absolutely lucrative investment property for its price point, and it has a 67% occupancy rate. So it’s in a stable market. It offers great rates of return.

It’s a deal that you do not wanna miss out on. So I would highly recommend that you take at this. If the price point is convenient for you and if you’ve considered Philadelphia before.

Next on our list is in Atlanta, Georgia.

Being the capital and the most populous city in the State of Georgia, Atlanta has so much to offer to visitors and tourists. You have the Atlanta History Center, you have the Martin Luther King Jr. National Historic Site, you have the Downtown area, you have the Centennial Olympic Park, and of course you have the unique Georgia Aquarium. All these tourist spots attract visitors year round.

The Atlanta market has been a seller’s market for a few years, but it’s constantly heating up more and more. There is a shortage of listings, so if you’d like to explore opportunities in the city, I really encourage you to have a look at the property I have for you today as soon as possible. Deals like this are rare in Atlanta, and are gone within a few days.

The median property price is $512,000. This is not low, so first-time investors should have good financing options before putting down an offer. It’s a good idea to get pre-approved for a mortgage as soon as you can so that you can look like a serious buyer when you make an offer on a property.

Short-term rentals in Atlanta are legal but regulated, so you should look at the local laws before starting renting out. The last thing you want as an investor is to get in costly legal trouble.

The property that we have for you today is a single-family home. It’s furnished. It looks great for a potential Airbnb. The address is 3211 Olde Dekalb Way, and that’s in Brookhaven, Atlanta, Georgia. The zip code is 30340. The asking price is $475,000, offering you 4 beds, 3 baths, 2,296 square footage. This is a great property. It’s close to Midtown and Downtown and major locations that are bringing in attraction.

The average occupancy rate in the market is at 46%.

The property’s only been on the market for 19 days. This property has a potential rental income of $7,066. With a monthly mortgage of $1,551 and its recurring expenses at $2,688, you’ll be cash flowing around $3,000. That puts your cap rate at 11.06% and your cash on cash return at 32.93%. This is a deal that we rarely see.

This is an opportunity you don’t wanna miss out on. Your Airbnb occupancy rate will be 49%. All it will take is to put 20% down. On a deal like this, that’s around $100,000 upfront, and with good credit you can finance a deal like this, and you will have a lucrative investment. So don’t miss out on an opportunity like this. It also offers you a great stable traditional value, so you’ll have the chance to switch between Airbnb and traditional at any point. So I will highly recommend to check this property out. This property will not stay on the market for too long.

So, guys, these are the 5 rental properties for this week. Quite amazing, aren’t they? Trust me, properties like these don’t stay on the market for long. They usually get sold within a couple of weeks or less. And with the current seller’s market, they are gone even faster.

So if you liked any of these properties, if you think they might be the right fit for you, I encourage you to take a look right away. You can find a link to each of these properties in the show notes below. Clicking on a link will take you to the property listing on our platform.

There you will find all the standard listing information that you expect to find such as the property address, the property type, listing price, description of the property, all the features and amenities.

But you will find much more than what other real estate websites are offering you. For each property, you get detailed investment property analysis. You see an estimate of the startup costs as well as the recurring monthly expenses. You’ll see the expected rental values based on the performance of actual rental comps in that neighborhood. Then we calculate the cash flow for you, as well as the cash on cash return and the cap rate.

What’s really cool about our platform is that all numbers and figures are customizable. You can easily change any of the numbers. So if you’re using a management company or not, if you’re adjusting your occupancy rate. Any change you make will influence the numbers.

So, guys, if you think any of these properties that I talked about today might be the right fit for you, check them out today. You don’t find such rates of return too often.

And even if you didn’t like any of these properties, you can still check out our Mashvisor platform. You can enter your own search criteria to find a property which is the perfect fit for you. Before I go, I have a special gift for you. It’s a 7-day absolutely free trial of our platform, with promo code TOP5, this is capital T, capital O, capital P, and then the number 5. Go to Mashvisor.com, apply promo code TOP5, and enjoy our platform for free for an entire week. Try out the tools, the features. See how easy it is to search for top-performing investment properties on your own.

And if you like it, you can decide to stay with us, so you will get or benefit from a 15% discount for life after the trial. This means that you will be saving an average of about $10 a month on the best real estate analysis platform available in the US market.

So, guys, that’s all from me today. I hope that you liked the properties that I had for you. And I hope that you feel more inspired and even more confident in moving forward with your investment. I will be back next week with even more exciting opportunities.

Meanwhile, happy investing!

To listen to more episodes of the Mashvisor Real Estate Podcast, click here.