What cities are currently great for high airbnb returns?

Short-Term & Vacation Rental Discussions

What cities are currently great for high airbnb returns?

Denver, CO · Member since 2017 · 102 posts · 48 votes

Who here is making 2-3x returns on their STR? I want to know what areas in the U.S. are hot. I have a full condo of furniture and have to move it somewhere to STR! Obviously I want it to be fully legal and licensed. I would love your experiences because my alternative is to spend a ton of money on airdna data! Thank you in advance!!!

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Paul Sandhu

Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes

@Bruce C.

Every day I have a Craigslist ad that shows up in the first search page. Like this:

Todays ad

I also have 3 small billboards in and around the contractor parking lot.

Every spring I send flyers to every welding school in Kansas, Oklahoma, Arkansas, Texas and Louisiana.

Every fall I send calendars of scantily clad women with my advertising to the H.R. dept of every contractors company that has rented from me.

There are magnetic signs on my truck.

I have a side job. It's doing the pre-access drug screens for new contractors starting their jobs at the refinery. Every contractor gets a nice metal pen with my contact info. There are about 3000 pens floating around the Midwest.

Craigslist and my side job account for 75% of my first time rentals. First time rentals are about 33% of my total rentals. 66% of my total rentals are repeat rentals.

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John UnderwoodPro Member
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
@Julie Hill 2-3X returns compared to long term rental? 2-3x times cash on cash? Can you specify what kind of return you are looking for?
0 Reply
Julie Hill
OP
Denver, CO · Member since 2017 · 102 posts · 48 votes
7y
2 - 3x the rent & utilities. I’m currently doing this with another unit but the owners are selling so I have to move. It’s been the best situation for both of us so I want to replicate this somewhere else
0 Reply
Julie McCoy
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
7y
Okay, so you specifically want arbitrage instead of to purchase something? I'm doing that with my cabins in the Smokies, but I own those, you're not going to find one to rent long-term.
Moving furniture is expensive, especially long distance. Why not look for another rental in your current city, since that did so well?
8 Reply
Edward Lui
Residential Real Estate Broker · Centreville, VA · Member since 2017 · 5 posts · 6 votes
7y
Is there a thread where owners are reporting cash-on-cash returns in various parts of the US? For example, with 25% down what are people getting after all expenses are paid? For example, in Poconos, seems like 15-20% is very doable.
2 Reply
Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Edward Lui. Again how are you figuring cash on cash? You can get into a cabin in East Tennessee with a purchase price of 500k for 50 grand already furnished. Gross 85 grand your first your and have a COC return of 50% or higher.
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4 Reply
Julie Hill
OP
Denver, CO · Member since 2017 · 102 posts · 48 votes
7y
Yes. I own a house that I STR as well but finances are tapped right now as we are right in the middle of a few flips so want to rent for now. Honestly rental arbitrage has been the best thing ever. And now that the furniture is not an expense (since I've already purchased it) I literally just need to plop it somewhere vs pay for storage!
0 Reply
Edward Lui
Residential Real Estate Broker · Centreville, VA · Member since 2017 · 5 posts · 6 votes
7y
@Luke Carl, When you talk about your cabin with a purchase price of $500k, I'm assuming a 25% down payment + any costs to furnish/fix/renovate as the initial cash outlay (for example $150k total). And then when you say gross $85k, I'm deducting all expenses for mgmt, PITI, utilities, etc. and coming up with a net (for example $30k leftover). So in this example, it would be a cash on cash return of 20%. Is that what you're finding in the Smokies at that price range?
1 Reply
Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Edward Lui management is free I use my iPhone. Which cost me a grand so you could figure that in as your management fee. They usually last me 2 years.
Why 25% down? Can do 15 or even 10. Happy renting!
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Edward Lui
Residential Real Estate Broker · Centreville, VA · Member since 2017 · 5 posts · 6 votes
7y
@Luke Carl, Getting a vacation rental with 25% down and having a property manager is sustainable and allows you to compare apples to apples across different areas around the nation. If you self manage, and I don't, then it's pretty hard to compare returns fairly. Therefore, it helps to include it for the purpose of the exercise.
2 Reply
Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Edward Lui I can’t give you numbers on your apples dude. My apples are oranges.
Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
5 Reply
Paul Sandhu
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
Buy a bank foreclosure in a distressed town that has a large industry. That's what I do. A 3BR with CH&A normally goes for $9500. Takes about another $1500 to furnish it. I charge $600/week. It takes about 6-10 months to recoup my purchase price.
Contractors are who I rent to. Those scary looking guys with neck tats that work on those large steel erections at a petrochemical refinery.
I don't carry, but peace is always within my reach.
7 Reply
Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Paul Sandhu nobody wants to hear about your peaches and pears
Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
4 Reply
Paul Sandhu
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
@Luke Carl We're just trying to help this guy to do the wango tango all the way to the bank, with a Jack and Cola.
6 Reply
Bruce C.
Seabrook/Galveston · Member since 2018 · 274 posts · 178 votes
7y
@Paul Sandhu
How do you go about marketing to them? I’ve been considering doing something similar in Texas City/La Marque area. I’m just not sure how to get the renters
0 Reply
Paul Sandhu
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
@Bruce C.
Every day I have a Craigslist ad that shows up in the first search page. Like this:
Todays ad
I also have 3 small billboards in and around the contractor parking lot.
Every spring I send flyers to every welding school in Kansas, Oklahoma, Arkansas, Texas and Louisiana.
Every fall I send calendars of scantily clad women with my advertising to the H.R. dept of every contractors company that has rented from me.
There are magnetic signs on my truck.
I have a side job. It's doing the pre-access drug screens for new contractors starting their jobs at the refinery. Every contractor gets a nice metal pen with my contact info. There are about 3000 pens floating around the Midwest.
Craigslist and my side job account for 75% of my first time rentals. First time rentals are about 33% of my total rentals. 66% of my total rentals are repeat rentals.
10 Reply
Tim Schroeder
Rental Property Investor · Castle Rock, CO · Member since 2017 · 335 posts · 387 votes
7y
Originally posted by @Luke Carl:

@Julie McCoy I’m glad this person is getting smoked. When will people realize this is not investing?
Be nice. There are lots of ways to make money. Yours is not the only way.
7 Reply
Luke CarlPro Member
Rental Property Investor · Tennessee Florida · Member since 2016 · 4k+ posts · 5k+ votes
7y
@Tim Schroeder I make money lots of different ways. Putting a lease on someone else’s property then throwing it on AirBnB is not one of them.
Podcast Guest on Show From Surviving on $30/Day to 30+ Properties Thanks to Blue-Collar Skills
3 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
Originally posted by @Paul Sandhu:

@Bruce C.
Every day I have a Craigslist ad that shows up in the first search page. Like this:
Todays ad
I also have 3 small billboards in and around the contractor parking lot.
Every spring I send flyers to every welding school in Kansas, Oklahoma, Arkansas, Texas and Louisiana.
Every fall I send calendars of scantily clad women with my advertising to the H.R. dept of every contractors company that has rented from me.
There are magnetic signs on my truck.
I have a side job. It's doing the pre-access drug screens for new contractors starting their jobs at the refinery. Every contractor gets a nice metal pen with my contact info. There are about 3000 pens floating around the Midwest.
Craigslist and my side job account for 75% of my first time rentals. First time rentals are about 33% of my total rentals. 66% of my total rentals are repeat rentals.
like all things successful you pull up your sleeves super size it and just beat the tar out of any competition.. nice work. you get rewarded for doing all those things.
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5 Reply
Doug Pintarch
Rental Property Investor · Harrisburg, PA · Member since 2018 · 369 posts · 406 votes
7y
@Paul Sandhu I read your ad and when I got to the third paragraph I said out loud "Damn! That's harsh Paul"!! But then I realized you're speaking directly to those guys and they don't do glossy bullsh!t. Well put together ad and it obviously works for you! Thanks for the link!
3 Reply
Rich Littlefield
Lender · Huntington Beach · Member since 2008 · 120 posts · 57 votes
7y
I have seen nice returns around Disney Land in Anaheim, Beach front properties do well out here as well.
2 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
7y
I brokered one just off of King st in Downtown charleston.. sold i think for about mid 800s and its a two unit the owner says she makes about 5k a month on it net.
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0 Reply
Nathan Ownby
Rental Property Investor · Murfreesboro, TN · Member since 2018 · 4 posts · 1 vote
7y
@Julie Hill I read an article last week that said Nashville, TN was one of the most lucrative markets for Airbnb's business. I'm not surprised at that considering the tourism here. But, neighborhoods and the hotel industry are pushing back against the STR trend. It's much more difficult now to get your property licensed through the city for STRs.
0 Reply
Sharon M.
Rental Property Investor · Atlanta, GA · Member since 2017 · 65 posts · 34 votes
7y
@Julie Hill
Atlanta is a great market. Most of my clients book for events and conferences at the Georgia World Congress Center (GWCC). They have events ALL year round. It’s located downtown Atlanta amongst other tourist attractions too.
0 Reply
Julie Hill
OP
Denver, CO · Member since 2017 · 102 posts · 48 votes
7y
@Sharon M. I have had my eye on Atlanta... is it friendly for STR? (permitting, taxes, etc)
0 Reply
Ben Hooper
Atlanta, GA · Member since 2015 · 38 posts · 28 votes
7y
@Julie Hill I've got two listings in atlanta, there's been meetings discussing regulating it. It looks like the regulation will go the way of permitting and hotel-style taxation
0 Reply

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