Investor · Cincinnati, OH · Member since 2019 · 89 posts · 23 votes
What would be considered a good versus bad buy?
Also, how would this differ income wise than a duplex, and pros and cons of each.
I've heard if the city allows it, airbnb trumps a long term rental since income is higher, they respect the property more, and it allows for the investor to get a property for a lower price.
We have had awesome experiences with our Airbnbs, even in areas where it may seem like there are already a lot out there. It really comes down to how you can be different (themed stays have worked well for us).
Obviously an airbnb would involve more work but like you said, the profits from it have trumped our long-term rentals by far.
Some more differences off the top of my head:
-Airbnb's business model allows you do even do arbitrage, so not even needing to invest in a property if you're in a super high priced market
-LTRs offer more stability of course, but nothing is guaranteed
-Airbnb is more hospitality business and not real estate. It is all about customer service (how quickly you can fix issues/respond)
My question for you is, have you considered purchasing a duplex and maybe doing LTR in one side and STR in the other? Then you get to see first hand which you personally prefer and which aligns with the kind of investments you want to be making in the future.
Let me know what your end decision is. Best of luck!
Rental Property Investor · RVA · Member since 2016 · 5k+ posts · 4k+ votes
7y
The regulatory question is the biggest one in my mind. I would also look at market saturation for AirBnbs. The nightly rates might be high, but to generate more income than long term rentals you'll need to stay occupied!
I don't this impacting property prices to a significant degree. AirBnb renters can absolutely destroy properties, you'll have to talk to experts to find out what repair costs you can count on. Stuff is going to break and they're going to leave a mess sometimes.
We have had awesome experiences with our Airbnbs, even in areas where it may seem like there are already a lot out there. It really comes down to how you can be different (themed stays have worked well for us).
Obviously an airbnb would involve more work but like you said, the profits from it have trumped our long-term rentals by far.
Some more differences off the top of my head:
-Airbnb's business model allows you do even do arbitrage, so not even needing to invest in a property if you're in a super high priced market
-LTRs offer more stability of course, but nothing is guaranteed
-Airbnb is more hospitality business and not real estate. It is all about customer service (how quickly you can fix issues/respond)
My question for you is, have you considered purchasing a duplex and maybe doing LTR in one side and STR in the other? Then you get to see first hand which you personally prefer and which aligns with the kind of investments you want to be making in the future.
Let me know what your end decision is. Best of luck!
Hey @Eric Piccione, as @Gina DiMasi says air B and B will pay more than a ltr in most cases. If you want to use real numbers you can try using one this BP calculator to see how much more you could potentially get from doing a STR. https://www.biggerpockets.com/...
Also remember that getting into air B and B will be more expensive than an LTR because you have to furnish the whole place and treat it as a hotel. So it really depends how much work you want to put in it and if you want to increase the time you have into responding to guest and solving their problems