I'm considering the rental options for a studio in Midtown Houston.
Does any one have any experience using Airbnb in the Houston area?
If so any feedback on market for Midtown /Downtown?
Following. I’m selling an apartment complex in the Heights and it could be very profitable with Air BnB
Yes. I bought a property in Montrose (but sort of borderline Montrose). It was actually a distressed property I bought, then fixed, then sold. Then a few years later I bought it back from the dude I sold it to. ANyway, he took 10 of the front facing (street facing) units and put them on airbnb. It seemed like, based on the $ he got, that this would be a better way to go. But after looking at it annualized, it wasn't much more than a regular tenant (and lenders hate it). So I converted them back
A few months ago I bought a 30 unit right downtown. Like, across from Toyota Center downtown. While I don't plan on doing any airbnb, I did have a guy that leased a group of units from me so HE could Airbnb. I'll lease them to him for $x, and if he can lease them out annualized for more than $x/month, more power to him.
If you're in a good submarket, and want to make that your business plan, there is a lot of money to be made.
Like a broken record, the trick is to find out the perfect Location, Location, Location ;-)
Many STRs break even or even lose money because the math needs to make sense in terms of year-round high average occupancy rates necessary to pass the break-even threshold. If you don't at least break even with all your necessary expenses (insurance, maintenance, management, etc.), you're fooling yourself, like so many others I consult with, that Airbnb can be a fun and great income idea. Do your homework BEFORE you lose money.
I almost did, when we explored purchasing a condo in a very well visited European summer vacation destination in the Mediterranean Sea, Mallorca Island (completely a dream by the way). We tested two mock-up rentals (I should probably dedicate a few blog posts about all my findings) and found that in a cycle of a year we wouldn't even break even. And now that the local government went ballistic and maliciously shut most of Airbnb down by scaring citizens and owners with exorbitant penalties (the dark side of the force is strong), this topic is off the table in this paradise until things change. But heck, the world is our oyster, right?
Check out EverBooked , Mashvisor , and AirDNA for some very accurate and cool data to gain more certainty on Airbnb rental predictions. Their reports are an excellent tool to include in your presentations to lenders, private capital investors, partners etc. You can also send me a DM or check out my Airbnb profile to study what I'm doing right or not so well. Always a good study.