Is AIRBNB investing in Fort Lauderdale Dead???

[William Kwong]

Hey All, 

Is investing in a single-family Airbnb in Fort Lauderdale still worth it? - I've done research in Poinsietta Heights which is still reasonably affordable vs other areas and can still compete against other airbnbs. - Using pricelabs.co, I'm seeing $54K yearly rev for a 3 bed single family with pool. $284 ADR with 60% Occupancy. - Other sources I'm seeing is $80K conservatively up to 110K. My wife and I are in recon stage with doing proper due diligence but it seems too risky. I have a few Airbnbs and know what we execute on to stand out but it just seems like there's WAY too much competition and the juice might not be worth the squeeze.

We're trying to be within 10 minutes from the beach and downtown, which is putting us at a price point around $600K for a prospect property, but even with those numbers at 20% down w/ taxes/insurance, it doesn't seem worth it with the surrounding competition. We would also stay during the busiest times, which I'm aware how much that will affect our revenue. (approx 35% of yearly rev there comes from Dec, Jan, February) We would airbnb our current place in Jersey which would do relatively well during those months, but it difficult to get a pulse when the data is all over the place. 

Any advice or two cents would be VERY much appreciated. Thanks BP Fam!

[Frank Borzen]

I live in SW Broward. Poinsettia Heights is a good value for real estate. Cute homes and close to everything. Lots of opportunity, but Ft. Lauderdale changes quickly, just like most large cities. I see people purchasing/listing homes in areas of Hollywood, Pompano, and Ft. Lauderdale that are very close to areas I would not want to vacation.

You are competing against many people who paid half of what you will. Taxes on 600k with no homestead will be 10k++, insurance maybe 6k+. The only way Ft. Lauderdale works for str is buying a fixer. The good news is they are readily available.