How did you find your Airbnb?

Question

Hi all! I’m looking to invest in my first Airbnb. I’m specifically looking in Philadelphia but I don’t know where to start. How did you find your first Airbnb if you did not already own it or live in it? I’m not having luck on realtor.com or Zillow.

Thanks!

John Underwood · Answer

It took me 2 years to find my VRBO.

I knew what I wanted, where I wanted it and what I wanted to pay.

I kept looking till I found it.

I didn't try and make something work that wasn't a good fit.

Julie McCoy · Answer

Hi @Amelia McGee!  The best thing to do is find a real estate agent who knows the local STR market. They will be invaluable in your search.  I've done that in both of my markets and they've been crucial to my success.

Also, figure out what you're looking for - that is, what makes a successful AirBNB in your market?  Find some existing places and model what they're doing, look for places in the same location.  Get with a lender and get pre-qualified.  Learn what the local regulations are so you know you can adhere to them.

Good luck!

Michael Baum · Answer

Hey @Amelia McGee, do you have a realtor? They can help get the ball rolling. Have you narrowed your criteria? Location? amenities, size? Have you checked zoning in your preferred area if STR's are even allowed?

Once you narrow the field a bit, you will have a better idea. Also check Craigslist and Facebook marketplace for places.

Mark Miles · Answer

I started out by looking around my own area, which happens to be the same area that you’re looking at. I couldn’t find anything good there so I kept expanding my target area to eventually  include the entire Northeast. And I just kept not being able to find what I was looking for in terms of year-round ROI bc of too much seasonality up here.

Then I started researching the entire United States as a whole, and I quickly found out that most of the places with a great ROI for STR are in the southern half of the US. Also, the Northeast tends to frown upon STR  and a lot of towns in the Northeast have passed or are passing legislation to restrict it. Whereas the southern half of the US seems to be a lot more amenable to STRs, it is just a built-in part of the culture there going back many many years.

After that, I narrowed it down to a few places in the southern half of the US that seem to have a lot of great STR opportunities. I started playing around on Zillow and Airbnb to confirm my hypothesis and strengthen my Research. Then I got in touch with local agents in those markets, who have helped me put together a number of deals, resulting in the highly profitable STRs that I own and operate today.

John D. · Answer

@Amelia McGee What is your criteria / why do you say nothing on the MLS is not suitable?

John Teachout · Answer

If you're planning on working it yourself, then obviously you want it to be very close to where you live. If not, it could probably be anywhere. We try to keep our rental properties to within 30 minutes or so of our residence. Our Airbnb is in our home. We haven't done a "whole house" type str.

Lisa Graesser · Answer

1st you need to know where you want to invest. Do they allow short term rentals? Is there a demand? Is it a place that you would want to spend your time?  Just keep watching the area that you are interested in, know the market, so you know a good deal when you find it. Study the area and what other STR's are bringing in. Our 1st house was "for sale by owner" on zillow. Other 2 were MLS, but found on Zillow. Be patient and wait for the right one. Location, location, location! Good Luck! Keep reading these STR forums, you will learn alot.

Lisa Graesser · Answer

Definitely not necessary to live that close to your rentals to manage yourself. You just need to have the right people in place to take care of whatever is needed. We manage our STR's from 1200 miles away. We try to occupy our places when they are not rented, to keep up with maintenance and make sure we are providing the guest with a well stocked and maintained home.

Daniel Umstead · Answer

Hi Amelia, I would also recommend as well to use this website to check out the rates, you don't want to get stuck with the wrong zoning or even worse the wrong rates, https://www.airdna.co/Good luck to you!

Julie McCoy · Answer

You'll need to make sure the building permits STRs, but even if they do, that could change at any time.  Unless a building explicitly permits STRs in their bylaws, I wouldn't buy there, because then you're up a creek when the neighbors decide they don't like it and vote new bylaws into place.

How did you find your Airbnb?

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