Airbnb Investment Property - Resources to make the right decision

7 Replies

Never used Mash or Air Academy.  Tried AirDNA a few weeks ago and the results were spot on with my rentals in this town.  Dug a little deeper and realized that AirDNA's data was just my properties and nobody else's. 

Find a bank foreclosure sale, you can probably buy it for 25 to 40 cents on the dollar.  If it's in a good neighborhood in a good city, you have the potential to make a lot money in your big pocket. 

No website is going to tell you what a good neighborhood in a good city is going to be.  That's where you do your groundwork in person.  People (not necessarily you) think they can just do some research on the internet, buy a house, sit at home, and the money starts flowing in. 

Start with your city, then work out from there (unless you are LucasCarl).

Highly dependent on where you are looking to invest. If you're in a big metropolis area, with lots of Airbnb, airdna probably would serve you.

If you're like Paul, where you're the monopoly, then... probably not.

Look to see on Airbnb if there are enough postings in your area so that statistics makes sense from Airdna.

@Matt Smith

You're asking a pretty common question. It's a good question, don't get me wrong, but it's not one that anyone has been able to answer in a nice report or chart.

In general, it seems smaller cities with some tourist attraction are good. Gatlinburg, Branson, Galveston, etc. The buy-in is lower and the demand is still there. That said, you can make it work anywhere. I've got a couple clients who just closed on Airbnb investment properties here in Denver where the prices are high, but their returns are definitely going to justify the expense. And I have another pair of clients under contract for an Airbnb property in Colorado Springs, where home prices (but also Airbnb prices) are lower. 

I agree with what @Paul Sandhu and @Andrew Wong are implicitly saying: AirDNA is only as good as its sample size. For instance, AirDNA's report on Airbnb in Denver is pretty solid, but just an hour south in Colorado Springs, that site's report is spotty at best. That's because there aren't enough listings yet to give you reliable numbers.

James Carlson, Real Estate Agent in CO (#FA.100071747 )
720-460-1770

@Matt Smith YOU are the only reliable resource. Study the other listings in the markets you’re interested in. See what they charge and how booked they are. I have 5 in the Gatlinburg area. PM me I’ll given you my number I’ll teach you everything I know. 

I have used AirDNA in the past and I received good and bad data but I personally just browse listings in my area and do a thorough research on my area. I research what is driving people to the area to get a sense of the demand. I look at the economy, sports venues, concert venues, etc and I look to create a listing marketed to these people according to the season that they are coming. 

@Matt Smith

As always, @Myka Artis says things that I like (to be fair, so did @Lucas Carl ). Reports -- even the best ones -- can only get you so far. Nothing beats knowing your own market and what will work there and won't. Look at the listings in the area you're interested in buying. See their furnishings, their prices, how they market themselves, and their occupancy rates. Can you do something similar? Better? And if so, will the numbers work for you?

James Carlson, Real Estate Agent in CO (#FA.100071747 )
720-460-1770

@Matt Smith You could try Everbooked as another resource in addition to AirDNA, those two are pretty much the industry standards.  Just recently I decided to compare the AirDNA projections for one of my properties for 2018 against its performance in 2017 and the projected was within 7% of actual, so pretty close.  Just remember that both of these sites include cleaning fees in the revenue projections so you're going to have to make an assumption on that front.  

To echo pretty much everyone else on this thread, local knowledge is going to make a big difference.  Search around on Airbnb with random dates and see what you find, you should be able to get a pretty good idea this way.  To get yet another opinion - try calling your local property management companies and as for a free revenue projection.  Some of them manage dozens of listings and have real experience with what to expect. 

Join the Largest Real Estate Investing Community

Basic membership is free, forever.