I need help I have seen some amazing properties I would like to purchase to use as an Airbnb. Any recommendation on how I can purchase, fix and finance to rent out as Airbnb? Any suggestions on how to get started would be amazing and Thank You
@Jelissa Bisono You rehab homes? That is a good skill. Are you looking at the sexy nightly rates? Like all investments, it isn't just how much money is brought in (nightly, for AirBnb), it is how much you get to keep at the end of the month. Analyze the amazing property and see if money is to made. Is the area saturated with furnished rentals? Is there a need for more? - near recreation area? The owner pays all utilities, research those costs. Cleanliness is important, add in housecleaning expenses. And guests like goodies - add in the freebies that are expected in your area. And furniture.
Your rehab experience will help you determine the out of pocket expenses for making the place ready to rent. Add these expenses with the usual expenses in buying income property - mortgage, insurance, property taxes. This will help you determine what left over dollars would be yours at the end of the month. If the amazing property is a good deal, you will have enough for water heaters and upkeep during your ownership period.
Start with current listing on AirBnb, the superhosts have their market figured out. You will have the opportunity to develop your own niche, to attract regular visitors.
Fannie Mae & Freddie Mac offer Investors and owner occupants rehab loan that allow you to have the purchase price + rehab cost into 1 loan.
Fannie Mae Homestyle
Freddie Mac CHOICERenovation
For owner occupants, you can also use the FHA 203k, which will also allow you to buy a MF property to live in one of the units and rent/Airbnb the other unit(s).
Hope this helps!
@Paul Welden thank you so much for your recommendation
@Kathy Henley Thank for the information provided. I really appreciate and will definitely look into all the points mentioned.
I will take pre-approval first and then put some offers.