When it comes to choosing a rental strategy for your investment property, you have two main options as a real estate investor: either a traditional, long-term rental strategy or a short-term rental strategy, otherwise known as an Airbnb rental strategy. And if you’re a beginner real estate investor, you’re probably wondering which is better: traditional vs Airbnb investments?
To help you decide, we have put together a Traditional Investments vs Airbnb Investments real estate infographic where we have compared the two types of real estate investments based on the following criteria:
- Definition
- Legality
- Rental Rate
- Rental Income
- Vacancies
- Taxes
- Rental Property Management
- Personal Use
This real estate infographic was created by Venngage Infographic and Timeline Maker.
If you’d still like to do more research before making a decision, you can check out our article Real Estate Investing: Traditional vs Airbnb Investments. There, you’ll find in-depth comparisons on the criteria outlined in the real estate infographic to help you make up your mind.
While some would say that the decision of which rental property investment strategy to go with is based on personal preference, there is actually a better way to decide. And that is to use real estate data and analytics.
First, you should look at the real estate market data for the location of your choice. Which rental strategy promises a higher rental income? A better return on investment (ROI)? A good occupancy rate? Of course, this is if Airbnb is legal for non-owner occupied rentals in that real estate market.
To help you choose the best places to invest in real estate for either rental strategy, we have put together two comprehensive lists:
20 Most Profitable Locations for Traditional Rentals in 2020: Cash on Cash Return
20 Most Profitable Airbnb Locations in 2020: Cash on Cash Return
Next, you’ll want to look at neighborhood data for each rental strategy and ask yourself the same questions. Where can you get this traditional and Airbnb data? Use Mashvisor’s Real Estate Heatmap to compare traditional vs Airbnb investments for any neighborhood in the US housing market.
Finally, once you find an investment property in a good neighborhood, you’ll want to compare the performance of each rental strategy for that specific property. For this, you can give Mashvisor’s Investment Property Calculator a try. Our Investment Property Calculator provides comparative real estate data for both rental strategies and this data is available for every investment property for sale on the platform. Check out an example of this investment property analysis here.
Using Mashvisor’s data and tools, any real estate investor will be able to choose the best, most profitable rental strategy based on the housing market and investment property of choice. To get started, sign up for Mashvisor now and within a matter of minutes, you’ll know which path is right for you: traditional vs Airbnb investments.