Anyone successfully done AirBnb property?

Jan 6 22 Comments

I am good at rental properties investments but am bored of it now after so many of them. I want to explore AirBnb investment. To anyone that has done it successfully, could you share any links they will help me with understanding investment calculation for if, how to identify/buy it etc? Any resources that basically help learn and move with AirBnb investments?

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TOP 22 Comments
  • Google
    CIAagent

    Go to company page Google

    CIAagent
    What resources can you share about rental properties?
    Jan 7 4
    • Start with the forum I mentioned above. Keep couple of things in mind when you start.
      1. Rent ratio - for base filtering, avoid property below 1% rent ratio. I.e. if you bought for 100k, you should expect at least 1k rent per month. If not, simply skip. Many professional investors target 2% rent ratio but is difficult for amateurs as you typically will be buying good property in good area and not fixer upper that you would do yourself. I personally target 1.5% rent ratio but 1% is stop for me.
      2. Capitalization rate - this is yearly income you expect divide by cost of property. Income should be calculated as rent minus all expenses fees but excluding principle and interest. You should target minimum >5% cap rate.

      This would be the beginning and you can go from there the more you learn. Be prepared to not get emotional and say no to tons of properties that doesnโ€™t fit, even if in specific market condition NONE of the properties are available for the returns you expect. You can keep your options open across the nation though locally you would have better connect and can manager yourself but keeping National option open allows you to find good properties and you can factor in higher cost of property management to outsource management. Be conservative and be slow initially. I.e. expect high operating expenses for first 5 years, consider vacancy rate of 2 months each year for first 5 years in your calculation (so you count your rental income not 12x of rent but 10x of rent) etc.

      There are lots of good rental property calculators online that will also help. You will find that in current market deals will not be easy to identify for first timer but patience will help. Develop a hobby of evaluating properties. And when finally a good deal appears then act fast and donโ€™t blink. Once bought, managing it is altogether a different story. ๐Ÿ˜Š

      This is not investment advise but just some general guidance to help you start. Good luck. ๐Ÿ‘
      Jan 8
    • Google
      CIAagent

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      CIAagent
      Thanks, bud!!!!! Going to deep dive!!!
      Jan 9
  • Meta
    skier โ›ท

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    skier โ›ท
    It's a high maintenance money pit. Do it only if you are willing to have a trusted management company do it properly for you. Else it's a massive time sink
    Jan 6 4
    • Meta
      skier โ›ท

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      skier โ›ท
      Yes it was own home Airbnb out. It makes much more money but it's not passive - Airbnb users need a lot of mollycoddling compared to your average rental tenant.

      Learned the hard way and sold the property in time
      Jan 6
    • Zoom
      lordOfRain

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      lordOfRain
      @skier, can you elaborate? Did you come out profitable in the end?
      Jan 6
  • I owned and self managed 4 at a time. Sold them all this past year. It's really about building a team around you to handle the daily things and minor inconveniences. You can automate a lot of the work as well. Sometimes it can be a royal pain in the ass, but the majority of the time things are easy. It's just when things go bad, they can go realllly bad.
    Jan 6 5
    • Zoom
      lordOfRain

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      lordOfRain
      That's terrible. I always treated any property I rented with respect and thought others did the same.

      Did AirBnB help either with reimbursement or anything else? Would you ever do it again?
      Jan 6
    • I'm actually doing it again. Though only 1 property but it's an actual vacation property for myself. I use a management company and have multiple insurance policies. I don't really care if this one makes money.

      With airbnb it's a fight to get them to payout anything.
      Jan 7
  • Rivian
    geartunl

    Go to company page Rivian

    geartunl
    Have you bought property recently?? I want to take the dive into rental properties but the prices in nice areas are so fucked now. And I have no idea how to pick out diamonds in the rough (good homes in shitty areas)
    Jan 6 5