What are good resources to identify hot markets?

Question

I'm looking to start my AirBNB business, but I don't know where to start looking for properties. I am interested in managing tiny homes/vacation AirBNBs. Any advice will help. Thank you!

Collin Hays · Answer

Looking at "hot markets" is sort of like looking at "the stock market" as an investment.  The real estate "market" is a very macro term, inclusive of millions of properties.  You only need a few good buys, and you can find those in hot and cold markets all day long.

2021 was the hottest year in memory in the Smoky Mountains in terms of real estate prices, yet I scored two of my all time best deals in that year.

Focus on finding your deals instead of the overall temperature of this or that market.

John Underwood · Answer

This forum - read through old post.

Google - Many articles on hot markets.

Aubrey Brendle · Answer

Outside of just researching general lists of the best STR markets, there are companies that are based around understanding current rental trends and target markets. I have a contact at Revedy that I utilize frequently and I would be more than happy to connect you.  Also STR's have become well established enough that at this point most areas have real estate agents that specialize in vacation rentals. If you do find a market you are interested in I would recommend leaning on an expert in that market, their knowledge can be invaluable and if they are good at what they do, so can their local network.

River Sava · Answer

Hi Scott,

I would look into AirDNA and join Facebook Groups like Airbnb Homes For Sale and Short Term Rental Secrets. Feel free to shoot me a message if you would like to discuss further.

Also, if you are looking for properties in AL, I am from there and can reach out to contacts. Let me know would love to help!

Jimmy Woodard · Answer

@Scott Sobera start with your budget and work backwards from there. What can you afford and which markets support that purchase price? I'd also recommend signing up for the free newsletter from data.rabbu.com which will send you top-producing STRs across the country. If you need any help analyzing properties feel free to DM me!

Joshua Messinger · Answer

Hey @Scott Sobera!

I would recommend starting here in these forums and going back to older threads. The amount of value in these forums can't even be put on a scale because you will hear of actual REAL scenarios that other investors have been through.

Otherwise, if you are really trying to figure out this information on your own a good way to figure out what area you want to invest in is by making a checklist of items that make the area you are looking in an actual viable investment area, here's a short example list of things I will look up in an area even before thinking of considering it:

- Amenities

-  Rules, Regulations, Bylaws, Covenants of the areas County, Townships, and City. (They all will have different rules)

- Market analysis of occupancy, revenue, ADR, etc.

- What does your competition look like?

- What're the economic trends of the area look like? (Healthy, Poor, etc)

Another way that you can get information like this is by connecting with a property manager or investor-friendly agent in the area that you choose to want to invest in. The information that you can get from someone who is invested in the area you are in is invaluable and shouldn't be overlooked.

If you have any other questions please don't hesitate to reach out!

All the best,

Josh

What are good resources to identify hot markets?

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