How to find what areas do well for Airbnb

Question

Hi all,

I will be moving to North Carolina in August and plan to rent a place and then put it on Airbnb to make some money. However, I'm not sure what cities in North Carolina are good for airbnb. I'm familiar with AirDNA but I'm not too sure if it's reliable and accurate. If anyone knows the best places to make money off STR/AirBNB in North Carolina, please let me know.

Thanks

Gerald Pitts · Answer

You want to look up TJ Tijani, and other experts on arbitrage. A lot of ppl have had a ton of success with this. You just have to know how to educate the owner on the win win nature of this. And know the risks. I also reccomend owning. At least at some point. I wouldn't want all my eggs in the arbitrage basket. A good strategy may be to do this as a means to an end of saving for a property to own. This is a business (and a good one for a lot). Owning long term is how you create wealth.

Paul Sandhu · Answer

Let me get this straight. You want to rent a property and then rerent it to tourists? Interesting concept.

Manny Vasquez · Answer

I have used Airdna and Mashvisor in the past and they have worked well for me. However, please take the numbers they provide with a grain of salt and cross-check the properties on either Airbnb or VRBO. You should be looking at occupancy rate, daily average rate and any seasonal fluctuations (plus other metrics important to you) to determine if the numbers work out for you.

Dave Stokley · Answer

Welcome and good luck!

First, most of the vets around here are going to tell you that the arbitrage model is a bad idea. #1 it's not investing, it's just creating a job for yourself, #2 it's risky, especially as the STR market appears to be tightening as LTR rents rise, and #3 most landlords aren't interested in letting you do it, because they're either scared of STR or if it was a good property for it they'd already being doing it themselves.

But if you’re going to get in the game I suggest you pay for the Airdna subscription, which will allow you to see actual comps it’s using and determine for yourself whether they make sense or not.

Daniel Muscarella · Answer

Yes. Do you have a better suggestion?

Patrick Drury · Answer

@Daniel MuscarellaYou want to be in an area where people frequently travel for example and in a good location. Air bnb's can work on the beach as a vacation rental or in the city if it's in the right location and is done properly to make it a great experience for your guests.

Bruce Woodruff · Answer

@Dave Stokley is right, this is not making you an investor, you have no skin in the property game. You are just subletting someone else's property. It may or may not make you money and be forewarned, it can be a lot of work depending on the particular house.

Say you rent a place for $1500 a mo, and manage to STR it for $2000 mo. So you've made $500 for that month, but what are your expenses? Have you run a spreadsheet yet or are you just guessing?

How to find what areas do well for Airbnb

How to find what areas do well for Airbnb

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