Professional · Jersey City, NJ · Member since 2014 · 154 posts · 87 votes
Tonight I am in London.
London is a place I visit often and was my home for three recent years.
During our time living in London, we - my family of four - visited as many places across Europe as practical, knowing we would not be here forever.
We stayed most comfortably in AirBNB apartments during those visits.
This evening I am staying via AirBNB with a family in their spare room.
I have enjoyed listening to @Brandon Turner's advice to interested new investors about the practicality of house hacking as a first step.
AirBNB reminds me of a house hack.
Are any of you in BP Nation using AirBNB to begin or expand your real estate investing?
If so, I would be interested to hear about your experience.
Many of the people we stayed with in the past few years I know are slowly building portfolios of AirBNB rentals.
Are you?
Please let me know.
Thank you,
Jonathan
Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
11y
Airbnb is not a house hack IMO. It's an income opportunity that requires running a business. Way more day-to-day operations than a rental. Not passive. Additionally, it's probably just a matter of time before cities and counties seriously crack down on short term vacation rentals. Offering short term accommodations to the general public is different from other types of housing. I love airbnb, but let's call it it what it is. It is not part of a sharing economy. It is fees charged for services provided. Health and safety inspections, business licenses, hotel taxes.....it's coming.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
11y
Here in Orange County all of the coastal areas have short term rentals, and the local governments are very supportive. Many property owners pay their mortgages from what they make in a summer, and are able to live in the house for the rest of the year payment free. Others use them for their retirement income, and the appreciation they gain.
Since we are building a spec house in San Clemente, CA, within a mile to the beach and Metrolink station, I was curious about the potential it would have as a VR (Vacation Rental) and pulled this off both VRBO and Airbnb for the summer months, and whether it would make sense for an investor. These are for the summer months which have higher rates, but because of our year round perfect weather, etc. vacation rentals are popular for the holidays, and other times too.
As you can see the prices homes get are tremendous. Especially those close to the beach, and finding newer places with high end amenities narrows down the offerings. Homes right on the beach can command even more! Add to that the YOY appreciation of around 17% right now, and you can see where it can be a very smart choice for investors.
Professional · Jersey City, NJ · Member since 2014 · 154 posts · 87 votes
11y
@Elizabeth Colegrove highlights the prospects of the opportunity well in her post above.
When we visited Spain this past summer, I was impressed to see how many people were able to cash flow enough to replace their employment and build a small portfolio.
I spoke with two women who noted that female unemployment in their age group was above 50 percent.
As such, they had each built themselves employment via this AirBNB model.
That is interesting, and not surprising, to hear about the short-term rental market along the CA coast. Demand to be near such a lovely coast during holiday breaks must generally be consistent.
We enjoy much the same along New Jersey's coast. Even after Sandy and the 2007/8 crisis demand for beach front rentals remained fairly strong.
Whole business lines of property management and AirBNB seem to be well-supported by the seasonal rental market.
We've enjoyed visits to North Carolina's outer banks (OBX), and the same appears true there as well. @Robert Bowles noted his success in ski country.
So it is nice to see that the model has legs in a number of locations.
The news from New York about AirBNB is interesting and likely trend setting.
I read last week that Stephen Ross of The Related Group has asked his residential property managers and tenants to keep an eye out for AirBNB use in their properties.
As the deep pockets (aka bigger), large owners such as The Related Group likely want to avoid being accused by NYS of supporting a concept that requires regulation.
Many cities globally follow New York's lead on policy (e.g., the smoking ban in restaurants).
So it will be interesting to see how the administration and voters end up expressing their views over time.
Real Estate Entrepreneur · Portland, OR · Member since 2014 · 451 posts · 328 votes
11y
@Melissa Culpepper pointed to the very reason why my investment partner and I decided against purchasing a few properties for vacation rentals. It is a business in and of itself. Design and staging has to be right. Marketing has to be excellent. Management is a daily process rather than a passive investment like long term rentals. I have a friend that operates 16 condo units in one Nashville building as short term rentals. Her ownership point was around 12 rentals in order to hire employees and reduce her work load. She still spends a large amount of time running the business (probably mostly because of her passion for it). Running this type of an investment will take time away from niches already created so I see it as a better strategy for less active investors (house hackers fit in my opinion) with other types of income or someone so passionate for the industry that they don't mind the job they create.
@K. Marie Poe also nailed it. Regulation should be a big concern. I believe regulation for Portland is and has been growing since AirBnB announced moving into the market place. AirBnB has been successfully lobbying for changes, but those changes are mostly around getting their income base. Along with the municipalities getting their tax revenue. Rather than short term rentals being a mostly bootleg industry, it is now becoming an out in the open industry. That should result in more inspections of properties and more policing of the industry. The recent regulations didn't change much from an owner's legal parameters. Vacation rentals were already allowed with the right permitting. The one change that would've helped, didn't come. Residential zoned property can still only be legally operated in owner occupied residences on a room by room basis. Owners operating VR out of their residentially zoned non owner occupied rentals are breaking the law. More policing will result in more fines, which would kill the only reason to run them in the first place....income.
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
11y
Orange County is very popular with tourists from around the world. For instance when it's REALLY HOT in Saudi Arabia and the middle east, or inundated with rain and snow in other parts of the world, coming to Orange County where winter temperatures are between 68-72 during the day, is a welcome change, and we don't have hurricanes! Add to that all the amusement parks, zoos, ocean, sports teams and venues, shopping, etc. and it's probably one of the top destinations for vacation getaways, as it's a very well rounded draw.