Best cities to buy into for AirBNB?
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?
@Tim Schroeder I'd be happy to set you up with a knowledgeable realtor and share some insights next time you are in town.
Brandon. I believe it is 3 units or more for Type 3. I have a triplex that was approved for a type 3 permit.
Originally posted by @Brandon Cobb:
@Devan Mcclish Devan, correct me If I am wrong. Nashville considers any property type you don't live in with 4 or less units to be a type 2 STR even If It is zoned Cl, CS, MUL, RM, OR, IR. To get a type 3 STR permit It would have to have 5 or more units from my understanding. These are rarely ever zoned R or RS anyway. In other words, the only way to get a non-owner occupied STR would be to buy a property with 5 or more units to qualify for the type 3. Am I missing anything? Very interested in doing a project like this and would love your thoughts.
False. It all depends on the zoning. If you have those above mentioned zonings, those are type 3 permits according to BL2107-608 pending ordinance by metro council. Having 5 units has nothing to do with it. I just got 3 type 3 permits on a triplex zoned RM20
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Devan Mcclish Brandon Cobb are you keeping these for yourself or selling them to unsuspecting morons who will be screwed if they lose their permits? The latter is the better choice. I suspect I’ll get no reply.
Hi Lucas, these are for my own personal portfolio. I believe you are thinking of properties zoned RS or R requiring a type 2 permit. Yes, the city may ban these in the 606 bill being voted on in January but that bill will not ban type 1 or type 3 permits. Your welcome to go down to the permit and codes department and have that conversation with them but I thought I would save you the trip. I hope this answers your question.
Cheers
Good to know, thanks Devan!
what about internationally? I know the USD is very strong in southeast asia
Jeff Piscioniere I'm in your town and looking at pigeon forge for my next investment. Any chance you could talk with me for a few ? Thank you!
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@Diana T. you need to talk to @avery
@Avery Carl she’s the pigeon forge expert
@Diana T. I just sent you a colleague request and my contact info! Would love to chat!!!
I see a lot of posts from markets I wouldn't consider "vacation destinations." Sounds like folks are still successfully operating STR's, but I'm curious what percentage of the year they are booked? I'd love to hear some real numbers folks are getting with these properties. When I think of a good market, I think most people want to know how much they could really make!
I operate a STR hosting business in Tampa, and laws vary slightly, but we stay within the boundaries, and our premier listings are tracking to be booked around 85% for the year. Done right, Tampa is an excellent market for it, and since we have so many South American vacationers, you can tap into that market using platforms other than Airbnb. This evens out the seasonal dips in booking percentage as well!
Christopher,
Thanks for the clarification. I found this out after originally posting this, but forgot to follow up.
Greg
Originally posted by @Christopher Brainard:
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
I have to second @Keith Courtney on mentioning the Orlando area, specifically anywhere adjacent to Disney. My first purchase was an SFH in a rental community 15 minutes south of Disney. My partner and I self manage with an extra diligent cleaning service and things are totally turnkey. The name of the city is Davenport, FL, and it's a huge destination for snowbirds, Brazilians, and European's looking for some sun. I am kind of bored of visiting (I'd rather surf) but my business partner is huge into golf and goes there constantly.
My second choice is Venice Beach. We have a few property's on lease there and the sublease model is still alive and kicking! Airdna.co was invented right down the street in Santa Monica and @Scott Stafford (I think he's on this site?) was one of the first more prominent and vocal multi-hosts in LA. There was a huge public backlash against Airbnb, with many incorporated areas such as Santa Monica and Manhattan Beach outlawing airbnb listings completely. The overflow from people looking in those areas ends up in Venice Beach, Playa Vista, Culver City, and Pacific Palisades. Your gonna have to befriend your neighbors (but who doesn't like that) but if you can get a lease or purchase in a cool place, the numbers will make sense!
I am trying to start a group of people around the country who are willing to share data on their occupancy rates, pricing, seasonality, ROI, etc to help other investors who want to expand into new markets. Airdna.co data im a little skeptical of after looking at it for my own nyc market. plus I dont think they have access to all the data they need (correct me if im wrong but can they tell the difference between available nights and booked nights? also, arent they using old data?)
I think it can create good synergies to share data for a couple reasons:
1) my market is a good rental market, but i have no intention to buy and would like to diversify my risk; someone interested in NYC rental market I can help a lot e.g.
2) access to real data and pricing from real hosts. get a lot more insight talking to a host than going through just the data i think
3) network !
If anyone is interested in being part of this group, shoot me a PM. We'd want data on:
1) average daily rate
2) occupancy rate
3) major movements in your market of supply/demand
4) overall insight into the market (new employer coming into town, etc.)
ideally 1-2 people could be responsible for their market, and we can share info.
@Jorge Jimenez hi Jorge, I was wondering when NOLA was going to pop up. I bought a double shotgun in St Claude/St Roch area two blocks north (lakeside) of St Claude in 2016. I rent one side long term and AIRBNB the other. The real estate is exploding and both my airbnb and equity are going strong. Investors just recently bought what used to be a squatter house and flipped for upwards of 350k on my street. I personnally don't have the funds for down payments and upgrades or I would probably buy another. With that being said, beware that the city is cracking down on airbnb, has severed all ties with them and warning STR they may or may not renew or approve new permits. However, long term rentals are needed and supply/demand is off due to airbnb and flips so regardless I think there are still some great investments. I also like to give back to the community which is why 1/2 my double is reserved for long term only since the STR and investors are pricing out all the people who make NOLA spectacular. The artists & musicians. Generfication is beyond happening there. There are still pockets though so if you want more info on demographics just let me know.
@Alex M. Hey Noah, if helpful, one way I get histroy from airbnb is looking at the reviews since they are dated by month/year. If a demographic is getting say 4 reviews a month that tells me its being rented frequently along with how many reviews to date.
I know I'm late to the thread but for future reference. Check out AirDNA.com
They are the authority when it comes to AirBnb numbers. Nashville, TN and Palm Springs, CA are hot for AirBnb at the moment.
Here's a podcast episode on the matter:
http://shorttermrentals.libsyn.com/str-2-data-insights-for-the-sharing-economy-with-airdnas-scott-shatford
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?
Tim we have a place in columbus you should take a look at that does great. i posted it to the marketplace earlier today. urban core downtown.
