We are looking to buy a single family in Tucson for my MIL to rent from us in the winter. My husband grew up down there so he has some familiarity with the area.We are wanting to hold on to it for use as a future rental property when she no longer uses it- possibly Airbnb or military or college rental?
My question is - what do you do with a rental in the summer? Is there any market for an Airbnb or do you just close up the home? Would a condo be a safer choice in that respect? This would be the start of our real estate investing, so all input is welcome! Thanks!
Rents are very inexpensive in T AZ - perhaps MIL could just rent and you guys could buy a property to rent out with a 12 month lease to a professional.
If mom can find a pad for 700/mo and you can find a place that brings in 800/mo its a win in my book...
Maybe down the road if you want to transition that home to self use you could.
If you want a Airbnb property I would buy near downtown Tucson or UofA. Otherwise I would suggest just renting the house out on a yearly basis. The summertime doesn’t usually slow things down in Tucson regardless of what route you decide to take. Just my thoughts.
Hey @Karine Ingraham . Glad your MIL has chosen Tucson as her preferred winter destination. It is a really fun town to own property in and a great option for retired snowbirds.
The demand for rentals most definitely declines in the winter time but folks move into and out of town all the time. There is a market for AirBnB in the summer time for all the non-traditionals: doctors doing rotations at the local hospitals, backpackers traveling across the SW and looking to park up for a night or three, those newly relocated for work who want to rent for 3-6 months before making their mind up on where to buy... The beauty of AirBnB is that you can adjust your pricing on the fly to better your odds of making something (or perhaps minimizing your holding costs) until the winter time when it's actually profitable.
Anything with an HOA will be marginally more complicated in the sense that you'll have to research the HOA's by-laws for what's allowed so far as short term rentals. Condos that are owned as Co-Ops can be even trickier with financing and common property ownership, and are admittedly out of my expertise.
Hope that helps. Feel free to reach out directly if you have any more questions about what's available out here.
Any idea where i could find vacancy rates for short-term rentals? We want to buy an Airbnb in Tucson (2 bed 2 bath condo), but when I look online, it seems like the market is saturated. There's 100's available on any given night.
Better to just interview a few AirBnB landlords you know. PM me for a few I know, or just ping people inside the AirBnB app and ask them how full they stay. It also looks like a company called MashAdvisor may sell that data: https://www.mashvisor.com/explore/#!/Search
Some things to ponder: what do you consider the sum of all AirBnB listings in Tucson?
- Only properties that are for-rent year long?
- For 100+ days a year?
- Do you include listings that were for-rent but priced so high or managed so poorly they had fewer than 5 renters last year?
- Do you only care about snowbird season? Do you include owner-occupied homes that only get rented out a few weeks a year when families travel?
And besides all that, would the average occupancy rate even apply to your investment: the one you found after weeks/months of market research, rehabbed intelligently and effectively manage using the BP Forums and podcast/webinar archives?
I don't know that the stat you're looking for is out there, or that it would tell us much if it was. But in general, the tapestry of renting out AirBnB in Tucson (price/rent ratio, state laws and taxation, demand for short term rentals, growth of city metro) seems to work for many local and out-of-state investors looking for that sort of thing.
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