Best cities to buy into for AirBNB?

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Best cities to buy into for AirBNB?

Tim Schroeder

Rental Property Investor · Castle Rock, CO · Member since 2017 · 335 posts · 387 votes

So is Nashville dead for new investors wanting to buy now? Are the regulations too strict/prices too high?

What about Austin? Las Vegas? Palm Springs? Columbus?

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Jeff Piscioniere

Investor · Shelton, CT · Member since 2016 · 218 posts · 225 votes

@Tim Schroeder are you committed to a large city? Gatlinburg/Pigeon Forge, TN are year round destinations and a VR on Airbnb or any of the listing sites will do incredibly!

Good luck on your choice!

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Jeff Piscioniere
Investor · Shelton, CT · Member since 2016 · 218 posts · 225 votes
8y
@Tim Schroeder are you committed to a large city? Gatlinburg/Pigeon Forge, TN are year round destinations and a VR on Airbnb or any of the listing sites will do incredibly!
Good luck on your choice!
7 Reply
Gary Parker
Real Estate Professional · Salt Lake City, UT · Member since 2010 · 608 posts · 163 votes
8y
Many markets have seen a lot of appreciation and are VERY competitive. Most areas are competitive because sellers know they can sell easily enough them self, and their are a record number of new investors. It is all about marketing to find good deals.
As far as AirBNB goes, make sure the city you are looking in hasn't made if difficult to operate a short term rental. Once you find favorable cities, I would market in those cities.
3 Reply
Greg Groves
Rental Property Investor · Germany · Member since 2014 · 6 posts · 3 votes
8y
Be sure to check local regulations for some of the cities you're proposing. For example, short term rentals (under 30 days) are illegal in Las Vegas thanks to casino/resort lobbying. Although there are still plenty listed on AirBnB, most people do it at their own risk (and regulators do shut people down). While there is certainly a good potential upside, it can be risky if you cannot cash flow on a longer term rental if AirBnB falls through.
2 Reply
Michelle McGee
North Las Vegas, NV · Member since 2017 · 3 posts · 1 vote
8y
I don't think they are illegal in Las Vegas. You just have to make sure to have the right license. I think it is $1000 for the city of Las Vegas.
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Christopher Brainard
Rental Property Investor · Rockwall, TX · Member since 2015 · 891 posts · 701 votes
8y
Originally posted by @Michelle McGee:

I don't think they are illegal in Las Vegas. You just have to make sure to have the right license. I think it is $1000 for the city of Las Vegas.
This is only partially true. They are only legal inside the city limits of Las Vegas and North Las Vegas and you need a business license and possibly a special use permit. Additionally, you also need a home that qualifies (there are various restrictions, such as the minimum distance to the next vacation rental). They are illegal in the majority of the valley - which is unincorporated Clark county and Henderson.
-Christopher
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Keith Courtney
Real Estate Brokerage/Vacation Homes/Short Term Vacation Home Rental Marketing · Orlando, FL · Member since 2013 · 159 posts · 127 votes
8y
Tim -
Here in Central Florida in the Disney World area short term rentals are well entrenched, and I don't see that ever changing for a number of reasons - one being the counties where they are located are receiving tremendous tax revenues from them.
I would suggest that you look here for a vacation rental. Just make sure and do your homework. There are some good opportunities here, but there a lot that are not good investments.
Keith
1 Reply
Myka Artis
Rental Property Investor · Arlington, TX · Member since 2016 · 706 posts · 611 votes
8y
The best cities for Airbnb are cities with Airbnb friendly laws and no down season. If you are looking at Austin, TX you will be booked year around. I have a place that I have right outside of Austin which is in Marble Falls and its packed year around as well. Las Vegas has a down turn during the summer months. I'm always booked in Fall & Spring in Vegas. I'm not sure which Palm Springs you are referring to but Palm Springs, CA is a hot spot year around as well. I don't have any information on Columbus. The best places to target are college towns and seasons with year around sporting events such as DFW, Austin, etc.
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Kris Wong
Rental Property Investor · Austin, TX · Member since 2016 · 361 posts · 394 votes
8y
The city of Austin is NOT friendly for STR. Surrounding areas may be. Austin has outlawed "type 1" STR, which is non-owner occupied. This hasn't taken effect yet for existing permitted properties, but I am not sure you would be able to get a new permit. Eventually they will all be illegal, unless this gets overridden at the state level.
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Josh Coffy
Investor · Scottsdale, AZ · Member since 2016 · 6 posts · 8 votes
8y
I’ll tell you from my recent experience that Pigeon Forge/Gatlinburg are INCREDIBLE for investing! Just purchased my first cabin (2x2) in August and had 88% occupancy in September and already have 90% in October booked. (45% booked for November too!) We’re raising our rates, but in month one (September), we did about $3,500 with all-in cost of $2,000. October is going to be in the same range — closer to $4,000. It’s a tad more work, but it honestly isn’t THAT bad. Maybe 10-15 hours/mo of work tops. Now, I’m looking to buy 5 more!
6 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
8y
Originally posted by @Tim Schroeder:

So is Nashville dead for new investors wanting to buy now? Are the regulations too strict/prices too high?
What about Austin? Las Vegas? Palm Springs? Columbus?
Airbnb is really doing well for a lot of investors here in Columbus Ohio. Some investors buy property specifically for Airbnb and never do long term leases.
[email protected]786-494-6766
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David IvyPro Member
Real Estate Broker · Austin, TX · Member since 2016 · 352 posts · 699 votes
8y
@Kris Wong is right. Austin is not STR friendly. You can rent a single family home on a short-term/AirBnB basis only if it's your primary residence or associated with your primary residence (e.g., a guest house, garage apartment, ADU, etc.). Many people still flout the regulations, and the city relies mostly on annoyed neighbors to report the worst offenders. In Austin, your best legal option for a non-owner occupied STR would be to buy a unit in one of the handful of condo communities that allow short-term rental (or at least don't actively enforce STR restrictions). I can send you a list of some to check out.
See more info. here.
1 Reply
Erin Spradlin
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
8y
@Tim Schroeder I'd look at the markets where Airbnb needs more hosts (hence, you know demand is there) and then call the city planner and ask about the laws. Specifically, is there a 30 day limitation, is there a use code limitation, have they addressed Airbnb/VRBO and/or are they about to. Since you are in Castle Rock, CO and we pull laws for cities, you can see them on our site. Also, know that Colorado Springs is a fantastic place for Airbnb investing because they have no immediate plans to restrict it and are generally very friendly to it. (Also, our family is doing it there and making a killing.)
5 Reply
Eric A.
Rental Property Investor · St. Augustine, FL · Member since 2017 · 189 posts · 127 votes
8y
I would encourage those investing in an Air BnB to look at data collection firms like airdna.co. I have absolutely nothing to do with them but you can pay for info that you need. Also, if your occupancy is extremely high you are not charging enough. Each market has its correct equilibrium but if you are not charging enough it's not the correct revenue to cover possible wear and tear.
3 Reply
Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
8y
@Tim Schroeder We live in Nashville don't waste your time buying anything here. The REIN meetings always go something like this "So, does anyone have any ideas on how to make a couple of bucks?...... crickets" As far as VRs, forget about it you're losing money just thinking about it.
@Josh Coffy Is obviously fired up about his cabin purchase with his recent action here on the VR forum. Happy to have him. And... He's right. You can make some money in the PF/GBurg area IF you are willing to self manage. If you don't want to manage forget about it you'll lose money.
Talk to Avery Carl about this market. She's the best in the biz. She's sold me 5 in the last year.
Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
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Nick Winikoff
Raleigh, NC · Member since 2017 · 27 posts · 5 votes
8y
I am the co-founder of a vacation rental business, we use google trends to help us decide what city to target through advertising and how busy that particular city is during their peak season.
There are small mountain cities in Colorado like Telluride that stay pretty relevant all year round.
1 Reply
Roger Poulin
Realtor · Hermitage, TN · Member since 2014 · 125 posts · 93 votes
8y
@Tim Schroeder, Nashville has setup an office to regulate STRs. They have been instructed to do what is needed to maintain a good quality of life in our neighborhoods. They have set up a hotline to report problems with STRs and the people who rent them. You can be forced to address / correct complaints without the benefit of confronting your accuser or having real proof. They have implemented new fees and taxes, and they will yank your permit without notice that you are delinquent, or notice that there is a new fee. They are no longer issuing permits in residential areas unless it is owner occupied. They are planning to stop renewing permits on non owner occupied in 2019. Permits are non-transferable, so you can't sell your STR as a business. The hotel lobby has the attention of the council members, and they are driving out competition
2 Reply
Juan Duque
Orlando, FL · Member since 2014 · 60 posts · 25 votes
8y
I’m in the Orlando market for short term rentals. It’s been great so far. The regulations are not strict but you have to make sure your hoa allows it if not it can be a pain if you can’t make it work with long term tenants
2 Reply
Tim Schroeder
OP
Rental Property Investor · Castle Rock, CO · Member since 2017 · 335 posts · 387 votes
8y
Originally posted by @Robert Ellis:

Originally posted by @Tim Schroeder:
So is Nashville dead for new investors wanting to buy now? Are the regulations too strict/prices too high?
What about Austin? Las Vegas? Palm Springs? Columbus?
Airbnb is really doing well for a lot of investors here in Columbus Ohio. Some investors buy property specifically for Airbnb and never do long term leases.
@robert ellis (sorry, the damn name tagging doesn't work very well on this site) let's talk about opportunities in Columbus. I'm looking at Gatlinburg at the moment but I keep hearing Columbus mentioned as a good location. Drop me an email. Thanks.
1 Reply
Tim Schroeder
OP
Rental Property Investor · Castle Rock, CO · Member since 2017 · 335 posts · 387 votes
8y
Originally posted by @Roger Poulin:

@Tim Schroeder, Nashville has setup an office to regulate STRs. They have been instructed to do what is needed to maintain a good quality of life in our neighborhoods. They have set up a hotline to report problems with STRs and the people who rent them. You can be forced to address / correct complaints without the benefit of confronting your accuser or having real proof. They have implemented new fees and taxes, and they will yank your permit without notice that you are delinquent, or notice that there is a new fee. They are no longer issuing permits in residential areas unless it is owner occupied. They are planning to stop renewing permits on non owner occupied in 2019. Permits are non-transferable, so you can't sell your STR as a business. The hotel lobby has the attention of the council members, and they are driving out competition
Uggghh sounds terrible. I guess the window has closed on that one....
0 Reply
Tim Schroeder
OP
Rental Property Investor · Castle Rock, CO · Member since 2017 · 335 posts · 387 votes
8y
Originally posted by @Erin Spradlin:
@Tim Schroeder I'd look at the markets where Airbnb needs more hosts (hence, you know demand is there) and then call the city planner and ask about the laws. Specifically, is there a 30 day limitation, is there a use code limitation, have they addressed Airbnb/VRBO and/or are they about to. Since you are in Castle Rock, CO and we pull laws for cities, you can see them on our site. Also, know that Colorado Springs is a fantastic place for Airbnb investing because they have no immediate plans to restrict it and are generally very friendly to it. (Also, our family is doing it there and making a killing.)
@erin spradlin I'd love to hear more about laws and opportunities in Castle Rock and The Springs. I had assumed CR was too expensive and The Springs isn't going to get as many visitors in the winter, but maybe I'm wrong. Would love to talk to you about it. Gatlinburg and midwest cities in Ohio and elsewhere seem like the best options, but please -- tell me how The Springs or CR could be better....?
0 Reply
Erin Spradlin
Real Estate Consultant · Colorado Springs, CO · Member since 2017 · 354 posts · 386 votes
8y
@Tim Schroeder - Well, we think Colorado Springs is particularly strong because the city is 1.) embracing Airbnb and 2.) has strong appreciation potential. We've called the planning department in Colorado Springs, and right now they have a memo out supporting it (https://coloradosprings.gov/planning/page/dab-405-short-term-rentals). When we talk to the planning department, they've said that if restrictions come in the future, they will likely be around limiting multi-units. For now though, multi-units are allowed, investments are allowed, etc. (My family has two there and are doing well on them.) For appreciation, CS is strong because they get Denver overflow and a ton of projects are taking place there right now. So, if you wanted to ever get rid of it, you would have a strong airbnb opportunity for the next 2-3 years and then a place that's probably appreciated quite a bit at the end as well. If you want to discuss further, private message me and I'm happy to answer other questions/schedule a call.
2 Reply
Robert EllisBusiness Member
Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
8y
Originally posted by @Tim Schroeder:

Originally posted by @Robert Ellis:
Originally posted by @Tim Schroeder:

So is Nashville dead for new investors wanting to buy now? Are the regulations too strict/prices too high?
What about Austin? Las Vegas? Palm Springs? Columbus?
Airbnb is really doing well for a lot of investors here in Columbus Ohio. Some investors buy property specifically for Airbnb and never do long term leases.
@robert ellis (sorry, the damn name tagging doesn't work very well on this site) let's talk about opportunities in Columbus. I'm looking at Gatlinburg at the moment but I keep hearing Columbus mentioned as a good location. Drop me an email. Thanks.
sent you a message
[email protected]786-494-6766
Section 8 Launch52 Reviews
Website View Page
0 Reply
Tyler Work
Rental Property Investor · Denver, CO · Member since 2017 · 179 posts · 208 votes
8y
@Tim Schroeder I host an Airbnb property in Castle Rock, would be happy to share how it went if you would like to PM me.
1 Reply
Benjamin Vail
Real Estate Broker · Columbus, OH · Member since 2016 · 181 posts · 244 votes
8y
@Tim Schroeder I host Airbnb properties in Columbus Ohio. I own my own brokerage, and have started my own new Short-Term (Airbnb) Managment company. We do end to end Managment of Airbnb’s, and are killing it with our numbers. I as a broker and investor myself, am also an expert in finding the right properties for Airbnb, so I can advise with that as well. If you are interested in seeing our numbers, or learning more, just let me know. Thanks!
Benjamin Vail
2 Reply
Carrie Penney
Investor · Lubbock, TX · Member since 2017 · 26 posts · 12 votes
8y
In Texas, good cities are mid-sized college towns, like Lubbock (Texas Tech) and Waco (Baylor, also Magnolia Farms for girl's trips). I live in Lubbock and have a couple of AirBnB properties that were really cheap to get into and do AWESOME on AirBnB (bring in more than double what a traditional rental would). I wouldn't invest in Austin when these kinds of cities are available. Sometimes I look at Austin MLS for fun and yesterday I saw a $190k "tear down" in an unlivable part of town. It's just insane right now. Maybe look for affordable cities that have some kind of draw to them like universities (especially if sporting is big there) or concerts/festivals. Just remember to have some exit strategies in case the city tries to shut you down or there is too much competition with short-term rentals.
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