Best cities / states for Airb&b

64 Replies

I would suggest looking into Scottsdale and Tempe, AZ.

Low property taxes, values have been steadily rising, lots of events with high demand for short term rentals (Spring Training, Waste Open), lots of snow birds, ASU students, etc.

There are some HOAs here that can be a pain would be the only negative IMO, but there are also plenty of properties in non-HOA areas

@Lindsay Brake Galveston might not be a bad idea.  There is the demand from refinery contractors and from tourism.  

Sour Lake Texas, that name doesn't even sound appealing.  A lot of the contractors call my town Coffinville, as in you'll end up in a coffin if you come here.

Originally posted by @Paul Sandhu :

@Lindsay Brake Galveston might not be a bad idea.  There is the demand from refinery contractors and from tourism.  

Sour Lake Texas, that name doesn't even sound appealing.  A lot of the contractors call my town Coffinville, as in you'll end up in a coffin if you come here.

Only thing in Sour Lake Texas is mosquitoes and craw-fish, The craw-fish is much better eating but you end up eating more mosquitoes. 

@Sofia Sharkey

Hey! How did you get a permit in 1 afternoon? My wife has a short term rental in KC and we are hoping to launch another one next month. We've been waiting for months! Many conversations with the City, need to get 55% of adjacent owner's signatures, etc, etc. I actually just talked to a City planner today ...he said they have 100s of applications in the pipeline so they are really backlogged. 

What are your thoughts on the future of short term rentals in KC? So far our 1st one is doing pretty well, but there are many new people jumping into the market it seems...

@Aaron L.   Try Burlington Kansas.  I get lots of calls from my Craigslist ads.  They are doing work at the nuke plant in Burlington and want a furnished house to stay in.  I tell them it's 2 hours away, because it's 2 hours away.  I rent to working contractors, no namby pamby people on a vacation.

Here's my ad

Craigslist ad

@Sofia Sharkey I know you specifically said that you're looking for somewhere warmer, but my little town is a major tourist hub year round (right near Yosemite National Park and a ski resort). I manage short term rentals for owners here and have a really long wait list of owners trying to use our services, we could definitely use some more knowledgeable investors and managers here! (I have some posts with info about income and occupancy if you're interested, reach out!)

@Jake Cohen thank you for the input Jake and Colorado would actually be amazing so I’ll need to put it back on my list of potencial places to do more research on. The reason I originally discarded it was the cost of real estate in the major cities there ...but I’m guessing smaller towns will be more affordable.

Kansas City regulations are ok, you need to get registered with the city and request permission from your neighbors if it’s not your primary residency. It works in the city but once you get to the suburbs or more residencial neighborhoods it can become an issue. We actually had to shut down a listing (it was a test so it’s fine) because the neighbors were not ok with it (for no reason other than being uncomfortable with the idea).

@Aaron L. Hey Aaron let me re-word that as I realize it’s probably misleading. I filled out the paperwork (application) in one afternoon. It took the city months to approve it. They don’t have staff to go through all the applications and it’s a mess. You do have to have 55% of your neighbors approve but in my case, both houses are in commercial areas so neighbor approvals weren’t an issue. They can be a deal breaker in residencial neighborhoods so you just need to do that research before hand / make sure most of your neighbors will be cool with it.

@Sofia Sharkey as far as the future of STR in KC I'll say it's a strong market. The city continues to grow rapidly, jobs are steady and paying well, younger people are coming into the city which is contributing to more tourism and visitors in general. Since the city already passed regulations, the hope is that that will not change anytime soon.

Margins are better than in most other cities because real estate is affordable. However you are right saying that more people are doing STR. Word spreads quickly but I think if you have a great location that weeds out a lot of competition.

Thanks for the response. Very interesting about how KC is running their AirBnB licensing program. Thanks for the info about that. If you have any specific questions about Colorado, let me know.

We are teaching a class about investing running your Airbnb if you or anyone else is interested. https://www.biggerpockets.com/forums/521/topics/71...





Originally posted by @Sofia Sharkey :

@Jake Cohen thank you for the input Jake and Colorado would actually be amazing so I’ll need to put it back on my list of potencial places to do more research on. The reason I originally discarded it was the cost of real estate in the major cities there ...but I’m guessing smaller towns will be more affordable.

Kansas City regulations are ok, you need to get registered with the city and request permission from your neighbors if it’s not your primary residency. It works in the city but once you get to the suburbs or more residencial neighborhoods it can become an issue. We actually had to shut down a listing (it was a test so it’s fine) because the neighbors were not ok with it (for no reason other than being uncomfortable with the idea).

 

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@Sofia Sharkey  Having a lot of success in Scottsdale/Phoenix with all different property types and price points. I wouldn't rule out Tempe either, as there is a ton of traveler demand there due to events, students, and parents of students. 

My wife and I own 2 STRs in Colorado Springs and have 2 others under management. Definitely investor friendly, and is the second most visited city in Colorado next to Denver! The Airbnb market here is pretty localized though, certain areas really only rent out in the summer, while others have pretty good year-round demand. 

@Sofia Sharkey

Late to the game here, but thought I'd chime in. Can't speak to other cities or states. (Though I know Arizona, as a state, has a law allowing for short-term rentals.) But I know we steer a lot of our STR-minded clients toward Colorado that Colorado Springs. As @Ryan Riches said, it's basically open for Airbnb. Unlike Denver, they have no "primary residence" rule and allow as many STRs as the zoning allows for units. (i.e. R-2 zoning can have 2 STRs. R-4 can have 4 STRs, etc.) What's even better is that there are a fair number of single-family homes zoned R-2, so you get a SFH at a SFH price and then do a little work to the basement to create a second space.

Anyway, good luck with everything. I grew up in Springfield, MO, and have family in Kansas City. That city is becoming cooler all the time. 

@James Carlson better late than never - thanks for the feedback ;) I didn’t expect Colorado Springs to come up as much as it has in regards to this topic. I originally ruled out a couple cities in Colorado because of the high real estate prices but will go back and check my math twice. I’m curious to see what margins I can get. Colorado is actually our ideal state to live in so I’d love if we can make this work there.

And you are right about KC, we love to see it growing and getting cooler. Tons of new development everywhere.

@Ryan Riches that’s a game changer fact for those of us who run airb&b full time. Any thoughts on how competitive it is in your experience with your listings? I’m sure the area / location has a lot to do with it but just wondering from a general perspective

@Sofia Sharkey  I'm in Destin/Fort Walton Beach, Florida and love it here, so I'm very partial. Vacation rentals is what I do :-). I own three of my own and also manage and sell for others. I like the Panhandle because the beach is always popular with tourists and we have some of the most beautiful beaches in the world. Also, unlike some other beach destinations the Panhandle of Florida is accessible by car for many families which can be critical if they are traveling on a budget. Also, there is an airport here, so that helps if people come in by flight. The area is popular pretty much year round. It's not "up and coming area" so there aren't any kind of crazy deals to be had, but the speculative high risk factor of "up and coming" areas is also not a big factor here. There are definitely areas where there is growing opportunity. For some reason out of town investors who say they are looking for "new deal" end up always clustering around the old established locales of the area and shy away from the newer sections. I'm guessing some lack of imagination might be to blame, lol. Yes, it's crowded in the summer and traffic gets congested. I have to admit that part as well, lol.

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