Hi, I'm totally new to the game, but would like to learn more about buying an investment property to be used as a short term rental. Does anyone know some good resources for learning that niche? This would not be in what is considered a vacation hot spot, probably more geared to a business traveler. Thanks in advance.
I noticed that nobody replied, so I thought I would add a few comments even though I'm new to this site since I've been offering my property through Airbnb for 5 years now.
My property is a guesthouse, so I would always recommend considering the option of adding a guesthouse if you have room on your property since it's a smaller investment and easier to manage. The owners before we bought our property already converted the big 2 car garage into a guesthouse.
That being said, if you plan to buy a separate property purely for Airbnb, start by ensuring the location is convenient (driving distance) and then begin finding comparables in the area to check pricing and possible demand. Airbnb property supply and occupancy rates can help decide if it's a good location. If you can find demand vs supply information obviously that would help you lots.
You can consider properties outside your driving range, but then you need to have someone manage the property for you.
Find something that you can do better than anyone else in your market and use it to your advantage. I do pre-employment (or pre-access) drug screens for a local refinery. On any given week, there can be 50-150 contractors in there for temporary jobs. They all have a house, but their houses are 300+ miles away. Most contractors used to stay in a cheap motel. Over the last 6 years the word has gotten around about the 82 beds in my 22 STRs, and my business has grown from 1 2-bedroom house to what it is now.
Find some sort of target market of renters that you have a niche or inside resource to get tenants. If you don't have a niche or inside resource, make one.
Another possibility is to look for rental units near military bases. We have a couple near the base in Biloxi and oftentimes we get requests for short stints 3-4 weeks up to 3 months at a time.
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