Advice on Owning an Income Property (Airbnb)
I am thinking of purchasing a condo in a popular tourist location and establishing it as am Airbnb for visitors to stay at. Has anybody else done this before? If so I would love to chat about how you got started. Thanks
Everyone with a little bit of money has been doing this. You’re late to the party and you’ll be paying a management / cleaning company if you don’t live there what makes you think you’ll generate any reasonable returns
I guess Ill jusr have to wait till I get more money. Definitely do not want to be paying an overpriced property manager or cleaner
R/Airbnb_hosts has everyone panicking, would not recommend at this time
Why what’s going on
Falling demand for airbnbs and the Airbnb changes (although that’s in dispute) meaning a lot of listings have nosedived. So a lot of people who depend on Airbnb income to fund their investment properties are entering rough waters, and potentially considering long term rentals or selling.
Lots of areas don't allow that anymore. Besides the maintenance costs can make it a bad investment. You should have done that years ago.
I talk with 10+ Airbnb hosts every week. I run Airbnbs myself. The key is to find emerging markets with undersupply - they DO exist. Case in point: Barcelona or Lisbon - a $1,000/mo long-term rental apartment is now selling at $5,000/mo on Airbnb, and still you can't find a decent Airbnb as a guest. My net rental yield is 15% average across many units whether it was Covid or not. Just spend some time on learning on how to run Airbnb well. It's easier to be top 10% in your Airbnb market than passing algorithmic interviews at any competitive companies :)
Only do this if you can pay cash for the property
Thats what I fathomed. Its easier if you can buy the entire property first