Realtor · Navarre, FL · Member since 2014 · 156 posts · 55 votes
Hey Fellow BPers! My hubby and I are looking at investing in a few air bnbs. I'm just in the beginning stages of doing my research. I was hoping to find some fellow forum members that own some Air BNBs in the Pensacola Florida area. What are y'alls vacancy rate? Is there a standard rate that you use for vacancy when trying to calculate a realistic profit? What is insurance running you? In the winter time, how are you staying full? Are you just renting to snowbirds for longer time periods? Thanks in advance! :)
Realtor · Pensacola, FL · Member since 2017 · 4 posts · 5 votes
5y
It's obviously dependent on the property, but in my experience, the smaller Airbnb's do REALLY well year-round. Even in the off-season, there's enough demand driven by the massive military presence and industry in the area. If you had a beach house that slept 40 people, yea you'd probably see a decline in the off-season. My AirBnbs are 2 bedrooms or less and stay occupied 25+ days a month on average throughout the year. I use Beyondpricing.com to automate the pricing so it fluctuates throughout the seasons--that has helped immensely in keeping it booked.
Real Estate Agent · Pensacola, FL · Member since 2014 · 379 posts · 307 votes
5y
Hey @Jessica Parker the answer to your question will differ depending on if your looking for something at the beach or in town. Which did you have in mind? My wife and I own a townhome at the beach but several of my past clients and friends own in town so I’m happy to shed a little light on both and connect you with one of them for anything I can’t answer.
Realtor · Navarre, FL · Member since 2014 · 156 posts · 55 votes
5y
@Matt Jones I was looking at the air bnb site the other day and I saw quite a few places that were near downtown pensacola. Just places that were 10-15 minutes from the beach in Pensacola, from what it looked like on a map. If we are going to buy an air bnb, it'll be something that needs a total rehab so we can get in for cheap, do the rehab, then hopefully re-fi out in 6 months once it's bringing in income. I have been looking on realtor.com and have found some properties that are pretty cheap that to me seem like they could be great air bnb's once rehabbed. So I guess to answer your question, not right on the beach.
I really appreciate your response Matt. Do y'all rent out your townhome as a vacation rental?
Real Estate Agent · Pensacola, FL · Member since 2014 · 379 posts · 307 votes
5y
@Jessica Parker we do rent our townhome most of the time but we are using it for ourselves for a week here and there that adds up to about a month out of the year. Insurance, occupancy & pricing are probably just enough different that it would be worth talking with someone that has Airbnb units in the areas you mentioned. Reach out to my friend @Jerrod Mink, he is doing a great job with Airbnb’s near downtown. I sold a home to an investor in April that’s right downtown and is already outperforming all of the rental projections we had done so I know that demand is still very strong.
Realtor · Navarre, FL · Member since 2014 · 156 posts · 55 votes
5y
@Matt Jones That's great to hear! As you know, we're looking at MHP's, but Air BnB might be a better way to go. I'll definitely reach out to Jerrod. :) Thanks!
Rental Property Investor · Pensacola, FL · Member since 2019 · 4 posts · 4 votes
5y
I own 2 Airbnbs and we are working on rehabbing a 3rd property that we plan to use as an Airbnb! They are all located in East Hill or near downtown. We haven't had a problem keeping them rented. Our vacant rate is probably about 15-20% for the entire year. We run our numbers assuming 60-70% occupancy rate. We occasionally have longer term people stay in the winter, but even when we don't, we still have plenty of rentals. We use a property manager, so that cuts into our profits a little. Feel free to reach out if you want anymore info!
Investor · Atlanta GA, USA · Member since 2018 · 118 posts · 90 votes
5y
@Jessica Parker I did this model (BRRRRbnb) with our unit in Myrtle Beach. If you’d like to connect further and hear how we did everything, feel free to DM me. Best of luck to you!
Realtor · Pensacola, FL · Member since 2017 · 4 posts · 5 votes
5y
It's obviously dependent on the property, but in my experience, the smaller Airbnb's do REALLY well year-round. Even in the off-season, there's enough demand driven by the massive military presence and industry in the area. If you had a beach house that slept 40 people, yea you'd probably see a decline in the off-season. My AirBnbs are 2 bedrooms or less and stay occupied 25+ days a month on average throughout the year. I use Beyondpricing.com to automate the pricing so it fluctuates throughout the seasons--that has helped immensely in keeping it booked.
Realtor · Navarre, FL · Member since 2014 · 156 posts · 55 votes
5y
@Jerrod Mink Great info, Thanks! Definitely good to know about the smaller properties doing well. I was thinking at least a 3/2, but maybe I won't shy away if I find a good 2 bedroom. How much are you renting your 2 bedroom for per night?
Great tip about the fluctuating pricing. I've thought about that, good to know there is a system to automate that! :)
@Lin Chen I heard that the stadium area is an up and coming area as well. I might have to keep an eye out for a property in that area. :) Do you currently have any air bnbs?
Thoughts on how well a 3bed 2 bath would do in Gonzalez? Its a nice newer home built in 2016 but not sure what kind of traction I would get that far from the beach?
Realtor · Navarre, FL · Member since 2014 · 156 posts · 55 votes
5y
@Jarett Jernigan I'll be curious to see what kind of responses you get. I am not in the area yet, (Move in a few weeks to Navarre) however, that looks like you'd be pretty far from the beach and downtown as well. Do you have any STR's? Or would this be your first one?
@Jessica Parker I don't have any STR yet, this would be the first. I know the market is really hot in Gonzalez for a traditional rental but was curious about the short term market.