Hello everyone! I would like to invest in a short term rental (Airbnb) property in Miami Beach. I’m trying to decide if I should purchase a 1 or 2 bedroom condo. Which would be more profitable?
Looking forward to hearing your thoughts and personal experience.
Here is my take, but know I just started mid-October so I am not a pro. I have a 2 BD 1BA apartment over my workshop. While I do not have the beds for a large family or group of friends, my place had been very busy with singles and couples looking to get away by themselves, seeking options other that hotels when in town for work, small gatherings of friends that cannot afford a larger place.
To me, I have more options and I don't have to wait on a larger group for a payday.
It is also up to how you manage. I self clean and I do not want to clean up after 8 or more folks.
Also, though, location is part of the equation. I am around wedding venues, wineries, hiking trails, mountains, etc. My place would not be a destination for families who want to pool their resources for a larger place where they can stay together.
Rental Property Investor · Stewartsville, NJ · Member since 2016 · 419 posts · 280 votes
3y
I think the saying is something like "more heads in beds", but basically the more rooms/beds you have the potential for more revenue.
You should look up the regulations for STRs in Miami. You may also want to look at the data on Airdna.co or what similar type condos are renting for on Airbnb and VRBO to get an idea of how much it may generate.
I'd suggest to first study the market, rules and regulations in your city as well as check out Airdna to have an overall picture and decide what is best suited for you and your business. Ideally, more beds would potential have more revenue.
Property Manager · Miami, FL · Member since 2023 · 21 posts · 3 votes
3y
I would definitely say 2 bedroom over 1 bedroom home. Not only because you can host more people and make more money but people do tend to travel in groups when they visit, be it friend group or family group
Here is my take, but know I just started mid-October so I am not a pro. I have a 2 BD 1BA apartment over my workshop. While I do not have the beds for a large family or group of friends, my place had been very busy with singles and couples looking to get away by themselves, seeking options other that hotels when in town for work, small gatherings of friends that cannot afford a larger place.
To me, I have more options and I don't have to wait on a larger group for a payday.
It is also up to how you manage. I self clean and I do not want to clean up after 8 or more folks.
Also, though, location is part of the equation. I am around wedding venues, wineries, hiking trails, mountains, etc. My place would not be a destination for families who want to pool their resources for a larger place where they can stay together.
REALTOR, Investor, and Rehab Expert · Miami Beach, FL · Member since 2015 · 196 posts · 74 votes
3y
My appraoch to this question is on the field research. If this is in a condo simply get on the elevator and you will stumble with a housekeeper. Ask what type of unit they clean the most? Then see what unit is most rare or less inventory of in the building. Does the building have more 1 bed rooms or 2 bedrooms. You can also ask the front desk. Who will know better than the people who see the booking action on a daily basis.
A similar thread popped up a few weeks back, and some posters shared some interesting data that the 1 bedrooms have better COC return (IIRC that was the metric used) than 2s and 3 bedrooms. The nice thing with a 1 bedroom is you can be more competitive with both your base price and your cleaning fee. Lots of couples and single travelers end up booking 2 bedroom houses even if they only need one bedroom because they want the amenities that typically come with it. I wouldn't write them off.
Realtor · Miami, FL · Member since 2019 · 46 posts · 22 votes
3y
@Roxan Wais-Shirley First, Take a look at the Miami Beach STR map. Most condos do not allow short term rentals. The condo buildings that do allow STR are mostly going to be condo-hotels (think W Hotel, Roney Palace, 1 Hotel, etc.) and these buildings do not qualify for conventional financing. Most investors who buy STR properties in Miami Beach pay cash.
Lender · New York, NY · Member since 2022 · 1k+ posts · 1k+ votes
3y
Would definitely consult Air DNA on this one if you have an account and see how revenue estimates, occupancy, highest performing properties, etc. compare between 1 bedroom vs 2 bedroom condo's in Miami Beach.