Is Air Bnb still good?

Cincinnati, Ohio
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Is Air Bnb still good?

James Robert
Flipper/Rehabber · Cincinnati, OH · Member since 2022 · 72 posts · 28 votes

Hello. I just bought a house in Cincinnati Ohio 2 bed 1 bath as a primary. It sounds some work and I got a good deal so I may do a cash out re-finance after the updates or HELOC. Not sure yet.
I work full time as a Realtor and I have about 55k in liquid funds after buying this primary. I wanted to also buy an air bnb.. Are the returns still as good as they were? Or should I just do another flip or something..
(I have done one successful flip so I would not be new to that).

What would you do in my situation? 

Thanks!

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Bruce WoodruffPro Member
Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
3y

The right Short Term Rental (STR) will always outperform a normal rental. AirBnB is just one of many platforms...and probably the worst....

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  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y

    The right Short Term Rental (STR) will always outperform a normal rental. AirBnB is just one of many platforms...and probably the worst....

    6Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y
    Quote from @Bruce Woodruff:

    The right Short Term Rental (STR) will always outperform a normal rental. AirBnB is just one of many platforms...and probably the worst....


     Right... Vrbo performs much better for me.

    2Reply
  • Brooklyn McCarty
    Investor · Member since 2022 · 1k+ posts · 754 votes
    3y

    Get on Airbnb/VRBO. Check out comps for the area. 

    Look into STR insights, pricelabs, airdna to get a good idea of what you'll able to generate.

    If you do a HELOC, you can recycle it over and over again. HELOC Vs Refi would depend to me where interest rates are at the time

    1Reply
  • Luke CarlPro Member
    Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
    3y

    Lots to learn. Starts with enemy method 

    Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
    2Reply
  • Conner Olsen
    Real Estate Agent · Austin, TX · Member since 2020 · 1k+ posts · 941 votes
    3y
    Quote from @James Robert:

    Hello. I just bought a house in Cincinnati Ohio 2 bed 1 bath as a primary. It sounds some work and I got a good deal so I may do a cash out re-finance after the updates or HELOC. Not sure yet.
    I work full time as a Realtor and I have about 55k in liquid funds after buying this primary. I wanted to also buy an air bnb.. Are the returns still as good as they were? Or should I just do another flip or something..
    (I have done one successful flip so I would not be new to that).

    What would you do in my situation? 

    Thanks!


    Returns are still higher than LTR, but they are lower than they were last two years. Depends if the LTR gets you to your goals quicker or if the STR does.

    1Reply
  • Andrew SteffensBusiness Member
    Tampa, FL · Member since 2022 · 3k+ posts · 3k+ votes
    3y

    I cannot speak from experience in OH but I can say you will want to become intimately familiar with your area.  You can use tools (we use AirDNA) to get some historical YoY data and get data on your competition.  See how they are doing and go from there.  Personally I always underwrite houses based on if they would be successful LTR as a good fall back.  Best of luck!

    [email protected]813-563-0877
    Vacation Rentals of Florida53 Reviews
    WebsiteView Page
    1Reply
  • Leslie Anne Morris
    Real Estate Agent · Smoky Mountains, TN · Member since 2022 · 1k+ posts · 984 votes
    3y

    You should look into it for sure.  Consider what excites you about it and be realistic with the amount of work it's going to be unless you hire a property management company.  If you decide to look further consider what areas you prefer and then speak with an agent in that market.  They should be able to help with most metrics if they're an investor themselves (underwriting, lender referral, etc).

    1Reply
  • Carson McGee
    Rental Property Investor · Charlotte, NC · Member since 2021 · 71 posts · 49 votes
    3y

    Hi James,

    Airbnb or short term rental returns are still solid. There are a bunch of factors that will determine what revenue you can expect. You should research the specific market, competition, potential over-saturation, what can help you stand out etc.

    Generating great Airbnb returns stems from having a unique property, marketing it well, and operating it efficiently. My team owns STR's in three markets and manages additional properties, I'd be happy to address any questions.

    1Reply
  • Brian Barch
    Member since 2022 · 272 posts · 253 votes
    3y

    Of course it can still be a good investment.

    the days of the average joe/Jane jumping in without knowing what they are doing and still making a profit are long gone. But that was an anomaly anyway.


    do you want to be an STR PM/host? I think that question needs to be a part of the equation

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Hey @James Robert, like others have said, AirBNB is a platform where you advertise.

    First you need to ask yourself, what will bring people to my STR? Is there a major university nearby that will drive guests to stay for games, graduation etc. Is it a great vacation area?

    Will you be buying in Cinci? Overall, if you have a quality STR in a great area, it will do just fine.

    0Reply
  • Pradeep Shrestha
    Investor · Cincinnati, OH · Member since 2022 · 34 posts · 13 votes
    3y

    I met a member of our REIAGC group who specializes in AirBNB. She is a pro and has a lot of airBNBs in cincinnati. If I were you, I would probably reach out to her and consult her. She is usually seen in the meetings helping other members of the group. 

    0Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    Short Term Rentals...not AirBNBs. AirBNB is a platform to advertise your short term rental.

    0Reply
  • Josh G.
    Investor · Salt Lake City · Member since 2017 · 12 posts · 8 votes
    3y

    @Bruce Woodruff what are your favorite platforms?

    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Josh G.:

    @Bruce Woodruff what are your favorite platforms?


     VRBO is #1 for me. And I have to use ABNB because they provide a substantial amount of bookings.

    1Reply
  • Peter MckernanBusiness Member
    Residential Real Estate Agent · Irvine, CA · Member since 2013 · 2k+ posts · 1k+ votes
    3y
    Quote from @James Robert:

    Hello. I just bought a house in Cincinnati Ohio 2 bed 1 bath as a primary. It sounds some work and I got a good deal so I may do a cash out re-finance after the updates or HELOC. Not sure yet.
    I work full time as a Realtor and I have about 55k in liquid funds after buying this primary. I wanted to also buy an air bnb.. Are the returns still as good as they were? Or should I just do another flip or something..
    (I have done one successful flip so I would not be new to that).

    What would you do in my situation? 

    Thanks!


     Returns are higher still for the STRs, more work for them and stricter city guidelines. 

    The McKernan Group4.957 Reviews
    WebsiteView Page
    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    3y

    It is impossible to generalize that, it is a market to market phenomenon. Winter seasons are typically the slowest (again, a generalization that may not apply to all). 

    0Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y
    Quote from @Bruce Woodruff:
    Quote from @Josh G.:

    @Bruce Woodruff what are your favorite platforms?


     VRBO is #1 for me. And I have to use ABNB because they provide a substantial amount of bookings.


     Besides VRBO and airbnb are there other platforms that you use? 

    0Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y
    Quote from @John Underwood:
    Quote from @Bruce Woodruff:

    The right Short Term Rental (STR) will always outperform a normal rental. AirBnB is just one of many platforms...and probably the worst....


     Right... Vrbo performs much better for me.


     Do you advertise on both vrbo and airbnb? 

    Are you just seeing better guests on vrbo? Or are you able to charge a higher rate? What is the benefit? 

    0Reply
  • John UnderwoodPro Member
    Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
    3y
    Quote from @Luka Milicevic:
    Quote from @John Underwood:
    Quote from @Bruce Woodruff:

    The right Short Term Rental (STR) will always outperform a normal rental. AirBnB is just one of many platforms...and probably the worst....


     Right... Vrbo performs much better for me.


     Do you advertise on both vrbo and airbnb? 

    Are you just seeing better guests on vrbo? Or are you able to charge a higher rate? What is the benefit? 


     I do use both. I get better rates and better guests on Vrbo.

    1Reply
  • Jay ThomasPro Member
    Real Estate Agent · Houston, TX · Member since 2021 · 1k+ posts · 715 votes
    3y

    It's no secret that Real Estate investors often turn to Short Term Rentals (STRs) as a way of increasing their profits. After all, who doesn't want more money in the bank? But it can be difficult to know which platform is best for your purpose, especially when there are so many options available. AirBnB may have been the first STR platform on the market, but it is far from the most profitable or reliable option out there. In fact, other platforms like HomeAway and Flipkey often outperform AirBnB in terms of both profit and user experience. So if you're looking for a sure-fire way to maximize your Real Estate investment, make sure you look beyond AirBnB and find an STR platform that works for you.

    [email protected]832-889-5607
    0Reply
  • Bruce WoodruffPro Member
    Contractor/Investor/Consultant · San Diego / Phoenix · Member since 2021 · 12k+ posts · 15k+ votes
    3y
    Quote from @Luka Milicevic:
    Quote from @Bruce Woodruff:
    Quote from @Josh G.:

    @Bruce Woodruff what are your favorite platforms?


     VRBO is #1 for me. And I have to use ABNB because they provide a substantial amount of bookings.


     Besides VRBO and airbnb are there other platforms that you use? 


     I have considered listing on Booking.com and Trip Advisor, even set up the listings. Never clicked the ON button though.....

    1Reply
  • Michael BaumPro Member
    Olympia, WA · Member since 2016 · 8k+ posts · 7k+ votes
    3y

    @Luka Milicevic, I also use both and get better guests from VRBO. The biggest issues I have had were with AirBNB guests. Nothing major at all. Just some damage which was handled. Booking.com is said to be revamping their STR stuff and judging by the Melissa McCarthy Superbowl ad, I hope it works out. I will list over there as well.

    @Jay Thomas, AirBNB wasn't the first STR platform. VRBO and HomeAway preceded it by over 10 years. HomeAway is part of VRBO now. AirBNB specialized in the single room rental at first then branched out.

    1Reply
  • Luka Milicevic
    Real Estate Agent · Nashville, TN · Member since 2015 · 2k+ posts · 2k+ votes
    3y
    Quote from @Michael Baum:

    @Luka Milicevic, I also use both and get better guests from VRBO. The biggest issues I have had were with AirBNB guests. Nothing major at all. Just some damage which was handled. Booking.com is said to be revamping their STR stuff and judging by the Melissa McCarthy Superbowl ad, I hope it works out. I will list over there as well.

    @Jay Thomas, AirBNB wasn't the first STR platform. VRBO and HomeAway preceded it by over 10 years. HomeAway is part of VRBO now. AirBNB specialized in the single room rental at first then branched out.


    I am very interested to see how the STR advertisers play out. Back in 2016/2017 I just advertised on airbnb as that's all I needed. I got 10x more bookings at the time compared to vrbo.

    I think the landscape has changed now.

    A lot of complaints around airbnb having "misleading" pricing. IE: $100/night but at check out it ends up being 500/night with fees and such. 

    I am hoping for some more competition to improve the space. 

    1Reply
  • Mason Jeffries
    Investor · Nashville / Smoky Mountains, TN · Member since 2019 · 110 posts · 49 votes
    3y

    @James Robert Do you want to be in the hospitality business? It comes with its share of effort and headaches, but most strategies do anyways. If your ok with being in the hospitality business then I would seriously consider it. As others have mentioned already, narrow down a market and contact folks in that area.

    0Reply
  • James Robert
    OP
    Flipper/Rehabber · Cincinnati, OH · Member since 2022 · 72 posts · 28 votes
    3y
    Quote from @Carson McGee:

    Hi James,

    Airbnb or short term rental returns are still solid. There are a bunch of factors that will determine what revenue you can expect. You should research the specific market, competition, potential over-saturation, what can help you stand out etc.

    Generating great Airbnb returns stems from having a unique property, marketing it well, and operating it efficiently. My team owns STR's in three markets and manages additional properties, I'd be happy to address any questions.


     sending you a dm

    0Reply
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