Episode notes
Vacation Rental and Airbnb Investing Beginner Lessons and Experiences. How to find the best short term rental markets to invest in 2022.
This topic has been beaten to death by real estate brokers and management companies on the podcast circuit, but we want to share our experience anyway - these tidbits may prove helpful on your next vacation rental venture
Market saturation - asking around facebook groups and using tools like airdna (although you do not want to solely rely on these tools…)
Can you find reliable help in that market? If you have an obscure location this may be harder than if you are operating in a tourism market and there are companies that cater to vacation rental businesses - this is huge
Home values, right now they are dropping across many markets
White sandy beaches, national parks, theme parks…
Lenient airbnb laws
Look at average daily rate, cap rate, occupancy rates
ROI with a mortgage, you are looking at 5-10%... most people are breaking even if they are doing it right.. When you cut out the mortgage its much higher 12-20% in some cases more than that if the operator is exceptional
Be contrarian sometimes, if you go where its hot right now…well the opportunities have probably dried up and the hotness is reflected in abnormally high property prices, lots of building activity, and saturation in the rental market
Your lifestyle is huge, like if there is somewhere you NEVER want to be…yeah do not suggest renting there. Maybe people say it has great roi but its like trying to own a business you know nothing about your chances of success are slim to none there is too much competition in this for that kind of thing…
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