Investor · Tampa · Member since 2018 · 289 posts · 107 votes
Hi BP Fam,
I invest out of state in Memphis using the buy &hold strategy, but not looking to generate short term income so I can invest long term. what cities would you recommend to do airbnb in? Thus far, I'm thinking somewhere that is heavily dependent upon tourism year round. On my list thus far is
Walnut Creek, CA · Member since 2020 · 285 posts · 318 votes
5y
@Keleisha Carter Here's another resource you can check out. If you have a specific city in mind, Airdna and Rabbu have 2 great tools you can use to estimate a property's potential revenue based on comps in the area. DM me if you have any other questions I can help with!
Real Estate Agent · Tampa, FL · Member since 2018 · 144 posts · 132 votes
5y
Keleisha,
Add the Florida Panhandle to your list!
Focusing on the area's that are dependent on tourism is a genius idea. Trying to invest in area's that are also industry driven can cause rental restrictions & other laws against Short term rentals. Good luck to you!
Investor · Tampa · Member since 2018 · 289 posts · 107 votes
5y
@Chai Xiong Lol, that was actually my first preference. But it cost about 350k-500k for a property in a non restricted area. Which county do you invest it? Is it a resort style place?
Investor · Metro East of St. Louis (Illinois) · Member since 2016 · 259 posts · 211 votes
5y
Why only look in tourism areas? The good tourism areas are PACKED with competition. Not impossible, of course, but maybe a tall order for a beginner.
What about universities, military bases, large factories, etc? You'll be the only game in town. Tourism areas still risk local regulation of STRs. That is always a risk for STRs.
You have an incredible built-in risk mitigation in non-tourism areas...30-day stays. If the town outlaws STRs, change your minimum stay length to 30days. It won't be as profitable as the shorter stuff, but still better than LTR. If you get outlawed in a tourism area...you have less flexibility.
Investor · Nashville, TN · Member since 2016 · 42 posts · 68 votes
5y
@Paul Sandhu - I took a drive to Wynnewood to see the town...I didn't see any property that would not take a ton of work - even for oil refinery workers. Wouldn't it be better to invest in Pauls Valley where there is at least a Walmart and Braums?
Focusing on the area's that are dependent on tourism is a genius idea. Trying to invest in area's that are also industry driven can cause rental restrictions & other laws against Short term rentals. Good luck to you!
What percentage of occupancy would you think for along 30A?
@Keleisha Carter Here's another resource you can check out. If you have a specific city in mind, Airdna and Rabbu have 2 great tools you can use to estimate a property's potential revenue based on comps in the area. DM me if you have any other questions I can help with!
Hat's off to you @Jimmy Woodard, your tip on AirDNA has kept me busy all day. ;-) Great resource, AirDNA is the Best Tip of The Week!
Real Estate Agent · Tampa, FL · Member since 2018 · 144 posts · 132 votes
5y
@Alex S.
Turning a tourism dependent area into 30 day minimum would shut down the vacation market, killing any money the city makes from it. For an area like the emerald coast, it is dependant on tourism so the cities would never put laws in tact against themselves. In short, I believe they are less risk.
@Mike Hern I typically see between 60-70 percent, depending on management of course.
We're scheduled to come down that way in late August for a stay at Alys Beach and to check out the area to see if we'd like to do STR somewhere between there and Clearwater. When we last came through, Tyndall AFB had been slammed by a hurricane (I think it was Michael) so it wasn't really a good time to get a sense of what could be. This time should be better.
Real Estate Agent · Tampa, FL · Member since 2018 · 144 posts · 132 votes
5y
@Mike Hern They are still slowly getting repairs done on the east side of Panama city, but the east end of 30a has been booming. Lots of new construction, additional shopping , as well as an underground walk way under 98 near Inlet Beach, so people staying north of 98 won't have to worry about crossing that busy highway. Feel free to reach out if you've got any other questions!
@Paul Sandhu - I took a drive to Wynnewood to see the town...I didn't see any property that would not take a ton of work - even for oil refinery workers. Wouldn't it be better to invest in Pauls Valley where there is at least a Walmart and Braums?
That might be a viable alternative, but the refinery workers factor in their driving time. One of my repeat renters told me about someone elses furnished house he stayed in at another job. Said there was a hole in the bathroom floor big enough for a cat to climb through. His name was Gerald. He came back to my town a 3rd time, but I had no vacancy at the time. His truck broke down somewhere and I towed him back to my house so he could change the rear axel with my tools.
Realtor · Sarasota, FL · Member since 2015 · 51 posts · 11 votes
5y
I'd like to throw Sarasota Fl in the mix. The city of Sarasota allows 7 day minimum rentals and the property appreciation we've seen in recent years has been spectacular!