Airbnb Based-STR: To Buy or Rent
Hi! I am currently a new homeowner who put $80,000 down on a $200,000 house in Greensboro, N.C. I have just recently gotten in to short-term rental via Airbnb. My first full month I made enough to cover the mortgage, with bookings up to six months in advance. I’ve gotten really positive feedback on my property, it’s cleanliness, how it’s decorated, etc. I have found an interest in the whole process of setting up an Airbnb and then managing it. I am currently using the house I live in and would like to acquire a new property to start an actual short-term rental business! Here are the questions I have:
1) Should I be looking to rent a property with an incentive-based agreement with a landlord (pay rent in advance, extra rent, % of profit) or should I buy a property?
-I currently bring in around $3,400/month with the ability to have $15,000 in capital in the next 6 months. With a credit score in low 700’s. However, I am very young (20).
2) If buying, how would I get approved for another mortgage on top of the one I already have?
3) Any insight/advice on these locations, or locations you would recommend on or near the East Coast? I am thinking about: Charlotte or Raleigh/Durham
4) How much should I budget for acquiring location, furnish it, and for unforeseen circumstances?
Ultimate goal: do short-term rentals until I can build up to long term student-housing type rentals (renting by room).