AirBnB and a vacation property

[William Collins]

I have been debating buying an investment property for 2 different utilizations:  1 personal use during limited vacation time during the year, and 2 to AirBnB the building for other vacation use.  Has anyone bought/utilized a small multifamily property for this purpose?  What are your thoughts?

[Trevor Ewen]

@William Collins 

There is a great article on the topic: here.

I have three opinions on the AirBnB market. Granted, I have never personally owned a property in that market, but I stay in many. I also live in an area where it's hotly debated.

1) Choose a location where the regulatory environment is not going to shut you down. Some friends in NYC bought/held two leases on condos to do this, now they don't have that option.

2) Conventional wisdom has suggested that you can't have your cake and eat it, too. If you want a vacation home for yourself, you usually have to buy it for that purpose. If it's for guests, you usually have to buy it for that purpose. The main reason is mindset switch. If it happens to be open a few off weekends of the year, you can obviously stay. But I would run and manage for maximum guest occupancy.

3) AirBnB has become fairly ubiquitous in many areas. As a result, supply has grown, and prices have fallen. We recently got a great place to ourselves in Center City, Philadelphia for $60/night. You want to find a place where demand is high but supply is still small.