Buying vacation home for AirBnb

Amazon PunjabiK
Jul 6 58 Comments

Thinking of buying this for vacation and eventually for retirement. I have 20% down available. Have couple of friends in that area.

https://www.redfin.com/CA/Folsom/281-Water-View-Way-95630/home/19237424?utm_source=ios_share&utm_medium=share&utm_campaign=copy_link&utm_nooverride=1&utm_content=link

Question is : can this be AirBnb’ed for next 5-10 years while I am still tech employed ? Has anyone done that ? Or should I think about rental only ?

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TOP 58 Comments
  • New / Strategy
    gandalfhan

    New Strategy

    PRE
    Oracle
    gandalfhanmore
    Thanks bro ! You found a good property, I will make an offer today :-)
    Jul 6 4
    • Amazon PunjabiK
      OP
      Be my guest. Maybe I’m the seller. Blind
      Jul 6
    • New / Strategy
      gandalfhan

      New Strategy

      PRE
      Oracle
      gandalfhanmore
      If I buy , would u air bnb?
      Jul 6
    • Amazon PunjabiK
      OP
      Depends upon the price
      Jul 6
    • New / Strategy
      gandalfhan

      New Strategy

      PRE
      Oracle
      gandalfhanmore
      U got your answer bro... all the best !
      Jul 6
  • Xilinx LKLA78
    But who the f would go to Folsom and rent that as an Airbnb?
    Jul 6 5
    • Amazon 10022004
      What? You don’t rent 4500 sqft mansions on Airbnb on the regular? Pfffft, peasant. Wash my windows.
      Jul 6
    • Amazon PunjabiK
      OP
      Why not ?
      Jul 6
    • Netflix mr.clippy
      They have a lovely prison there. Jonny Cash wrote a song about it.
      Jul 6
    • Amazon PunjabiK
      OP
      Someone wrote a song about SF. Many did. Does it make it more livable ?
      Jul 6
    • Netflix mr.clippy
      Prison is the operative word here....
      Jul 6
  • F5 Networks RRA
    $8 per month HOA dues. Deal breaker.
    Jul 6 5
    • Xilinx LKLA78
      I was about to say the opposite, haha
      Jul 6
    • Amazon bzodyakbsk
      How far away from this place do you live or have someone who can look after the property ? You'll need to go there regularly as an Airbnb or rental for repairs etc.
      Jul 6
    • Amazon PunjabiK
      OP
      I have few friends in that area who can handle emergencies. For regular care, I would rather hire professionals
      Jul 6
    • Qualcomm NqAf57
      $8 is a bargain. $10 would be too much for me.
      Jul 6
    • Xilinx LKLA78
      But that 8 will keep going up every year
      Jul 6
  • New / Other
    DuQvV7y

    New Other

    BIO
    Did stuff. Hustled hard. Retired
    DuQvV7ymore
    Have you run the numbers on this and determined the average Airbnb rental occupancy for the area?

    Have you calculated your run rate? Turnover on a 4500sf house is no joke. Maintenance. Utilities. Furnishing.

    If this was a beach rental area, you may do well. But honestly at that size it’d still be a headache.

    Hopefully you have some RE expertise. I don’t recommend this as property #1 or even #5
    Jul 7 7
    • New / Other
      DuQvV7y

      New Other

      BIO
      Did stuff. Hustled hard. Retired
      DuQvV7ymore
      @dolphin good question. Call the tourism office or the business development office of the county in question. They love to talk to investors. I’ve done that a few times because some municipalities don’t put this info on line.

      @gandalf yes, you’re missing something. Airbnb doesn’t tell you rental occupancy rate for an area.
      Jul 7
    • @gandalf. That will be give one data point. I want to know occupancy rates across seasons
      Jul 7
    • New / Strategy
      gandalfhan

      New Strategy

      PRE
      Oracle
      gandalfhanmore
      Makes sense ! Thanks for the info...
      Jul 7
    • Expedia / Data 🐋 shit
      @dolphin, IIRC, you can buy data from airdna
      Jul 9
    • Amazon gggshs
      Thanks. Looks good 👍
      Jul 9
  • Google FGtp85
    Boom I just bought it with my credit card. Oh the points!
    Jul 6 4
    • Paysafe VGWs80
      Nooo :/
      Jul 6
    • ICU Medical / Mktg
      user3.0

      ICU Medical Mktg

      BIO
      Trying my own thing but doing something for someone else. 🤷🏼‍♂️
      user3.0more
      Can you really do that?
      Jul 6
    • Google FGtp85
      No 😋 maybe zuck or Jeff can
      Jul 6
    • ICU Medical / Mktg
      user3.0

      ICU Medical Mktg

      BIO
      Trying my own thing but doing something for someone else. 🤷🏼‍♂️
      user3.0more
      I thought you were going to mention an American Express card with an unlimited cap.
      Jul 6
  • Apple VKjg08
    And I am paying 1.2m to live in a fucking box.
    Jul 6 4
    • Oracle marriedM
      That's what messes up our assessment of property values in other locations. Why spend over a million in Folsom?
      Jul 6
    • Amazon PunjabiK
      OP
      I visited the city and loved it. Personal opinion
      Jul 6
    • Oracle marriedM
      Gotta take a look at it!
      Jul 6
    • ICU Medical / Mktg
      user3.0

      ICU Medical Mktg

      BIO
      Trying my own thing but doing something for someone else. 🤷🏼‍♂️
      user3.0more
      At least you have sex with a box. 😒
      Jul 6
  • Netflix mr.clippy
    That house as is probably has a few 100k in furniture just to stage it. If you want to attract any sort of real Airbnb renters, you’ll have to furnish it similarly yourself or pay a stager.

    I don’t see any chance of you being net cash positive here with Airbnb.

    Better to buy a few rental properties in Texas. Make sure one of them is something you’ll want to live down the road and maximize the rest of them for rate of return.
    Jul 6 8
    • Netflix mr.clippy
      Yes. Taxes always go up in Texas. But it has a massive rental market. Lots of graduates with debt and need a job and a place to live. It’s still very net positive as a rental market. When property taxes go up so does the rent.

      Of course there’s other places that are good to be land lords as well. Just isn’t in CA that’s for sure.
      Jul 6
    • Google anononly
      As I was thinking of rental investment (sometime in 2-3 years) in Austin, curious how home owners could afford such increasing property tax; specially considering that the real estate valuation has been uptrending for last several years. Why Texas has no policy similar to CA proposition 13: https://en.m.wikipedia.org/wiki/1978_California_Proposition_13?
      Jul 6
    • Netflix mr.clippy
      Because they have no income tax. Property tax is how they pay for everything. They’d be totally bankrupt with a prop 13 “fix”. Texas isn’t stupid.
      Jul 7
    • Google anononly
      But won’t it deter people from ownership at all; and keep going with rents that don’t pay back government in a direct way?
      Jul 7
    • I think they know you will fall for ownership and they have almost infinite land for now for ownership
      Jul 7
  • Oracle marriedM
    Too much to bet on a single hand. Invest the 20% for a 100% cash purchase in a rentable property instead?
    Jul 6 2
    • Amazon PunjabiK
      OP
      Rentals won’t be able to substitute for vacation and retirement home unfortunately
      Jul 6
    • Oracle marriedM
      Gotcha! Aren't there some nice properties in the mountains in Bay Area too for a similar price? What's the wildfire or mudslide risk?

      Enjoy this!
      Jul 6
  • Google emc2too
    No. Not feasible. The economic crash will be a complete real estate wipe out. You don’t stand a chance.
    Jul 6 0
  • Tesla 100thievea
    Damn how do you maintain such a house
    Jul 6 4
    • Amazon PunjabiK
      OP
      You hire
      Jul 6
    • Tesla 100thievea
      Hire what? Isn’t that going to be more expensive to have a maid take care of it? Like atleast 1000$ per month
      Jul 6
    • Amazon PunjabiK
      OP
      True. You make well in Airbnb
      Jul 6
    • Tesla 100thievea
      The avg rate for one night is around 100$. Let’s just say you set the price to be 150$. You need someone to stay for at least 8-10 days every month.

      That’s is a gamble.
      Jul 6
  • Google
    🐀Race

    Google

    PRE
    Microsoft
    🐀Racemore
    What's in Folsom for AirBnB to work, especially at this price point?
    Jul 6 1
    • Samsung / Eng everlast
      Folsom prison visitors
      Jul 6
  • Paysafe VGWs80
    Shotgun!
    Jul 6 0
  • Google / Eng caniretire
    That's how much I paid for my townhouse. 🤪
    Jul 6 1

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