Last updated on June 15th, 2023
airbnb homes for sale San Jose
San Jose is commonly known as the capital of Silicon Valley which is situated in the southern part of California. Aside from this city’s sunny weather, it is also renowned as the tech and financial capital – which attracts plenty of talented entrepreneurs from around the globe.
Here’s an interesting fact: did you know that in San Jose, grocery stores highly encourage shoppers to follow environmental initiatives such as BYOB (Bring Your Own Bag)? Perfect for people who want to take part in saving mother nature! On a personal note, these kinds of cities such as San Jose says a lot about its care for their locals’ futures – innovative, bright, and green.
While it’s a fact that the housing markets in San Jose are relatively expensive, Norada Real Estate Investment confirms that the employment rate and the overall economy of this city are consistently on the rise. Since San Jose is situated within the heart of Silicon Valley area, this means that many employees working from well-known tech companies like Apple find properties within their budget.
Continue reading this article as we discuss our findings if it’s profitable for Airbnb property investment, along with some actual San Jose properties for sale. Let’s dive in!
Perks of Buying a House in San Jose, CA
According to Up Homes, San Jose is considered a great place to live due to its natural landscape and close proximity to major beach cities such as Santa Cruz & San Francisco. Let’s have a closer look at the advantages of buying an Airbnb property in San Jose:
1. Hot Market: Shortage of Housing Supply
Based on a recent report by San Jose Real Estate Los Gatos Homes, the limited inventory in San Jose is something that should be taken advantage of by those who want to invest in properties and make a good passive income. While there are high interest rates for various markets, there are still plenty of offers that are selling above the asking price. This simply means that the demand is consistent!
2. Business-minded People
Due to the young professionals working for huge software and computer companies, San Jose is home to several innovators and tech experts. Some of the popular companies with main headquarters in San Jose include PayPal, Adobe, Netflix, and even Google. This city is certainly suitable for those who want to have a work and play environment. Earning money while enjoying the big city!
3. Exciting Local Spots
Aside from San Jose’s focus on the office and business industry, there are also plenty of places to enjoy and relax such as amusement parks and waterparks in California’s Great America, and a contemporary art museum with exquisite collections.
Bonus: San Jose also offers a dog-friendly environment! Why have furry friends in diners or workplaces? We say – why not! There are also local dog parks in the city such as the Saratoga Creek Dog Park and Almaden Quicksilver County Park.
What to Expect When Living in San Jose
Now that we know the pros of investing in San Jose, let’s discuss some of the cons so you can know what to expect when living in this city. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. Caution: Heavy Traffic Congestion
Ranked as the 5th worst city with traffic congestion in the US by Biz Journals, it’s expected to be experienced by locals in San Jose, particularly during rush hours. However, the good news is that there’s reliable public transportation (VTA Light RAIL & BART) and car service available.
2. High Cost of Living
Since this large and beautiful city offers almost everything to its residents, expect that the cost of living is higher than the national average. It’s also a fact that San Jose is one of the wealthiest cities in America! Therefore, if one will decide to invest in this city, a good cash flow can be expected as long as the right neighborhood is targeted.
Profitable Neighborhoods for Airbnb in San Jose
In summary, San Jose is undoubtedly one of the best property investment cities in the USA, but let’s take a closer look at the important Airbnb key metrics. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods in San Jose:
airbnb property for sale Wisconsin Dells
Is Property Investment Profitable in San Jose?
Using a short-term rental calculator, it was discovered that a 2-bedroom apartment in San Jose can generate an annual revenue of $41,580 with a steady occupancy rate of 79% and a nightly rate of $128.
airbnb homes for sale San Jose
airbnb homes for sale San Jose
San Jose Properties for Sale
Buying a house property for Airbnb in San Jose will not only let you have access to a delightful vacation spot, but it can also bring an excellent return on investment and become a reliable income stream. It may be difficult to find the best properties that have the potential to produce high yields and capital growth, and this article will certainly help you through!
Here are some of the houses for sale in San Jose along with the calculated gross rental yield, cash-on-cash return, and annual revenue.
1903 E Bayshore Rd Spc 42, Redwood City, CA 94063
1. Studio-type Property for Sale San Jose
- 0.8 miles to Taft Elementary School
- Asking Price: $80,000
| GROSS RENTAL YIELD | 25.92% |
| ANNUAL REVENUE | $20,735 |
| CASH ON CASH RETURN | 51.99% |
5878 Garlic Farm Dr Spc 39, Gilroy, CA 95020
2. 1-Bedroom Type Property for Sale San Jose
- 1.4 miles Gilroy High School
- Asking Price: $89,950
| GROSS RENTAL YIELD | 27.06% |
| ANNUAL REVENUE | $24,341 |
| CASH ON CASH RETURN | 55.41% |
1075 Space Park Way Spc 1, Mountain View, CA 94043
3. 2-Bedroom Type Property for Sale San Jose
- 0.8 miles to Crittenden Middle School
- Asking Price: $149,999
| GROSS RENTAL YIELD | 24.03% |
| ANNUAL REVENUE | $36,045 |
| CASH ON CASH RETURN | 46.32% |
436 Merriweather Ln Unit 436, San Jose, CA 95134
4. 3-Bedroom Type Property for Sale San Jose
- 0.6 miles George Mayne Elementary School
- Asking Price: $225,000
| GROSS RENTAL YIELD | 23.83% |
| ANNUAL REVENUE | $53,619 |
| CASH ON CASH RETURN | 45.72% |
200 Ford Rd Spc 93, San Jose, CA 95138
5. 4-Bedroom Type Property for Sale San Jose
- 1.5 miles to Oak Grove High School
- Asking Price: $257,000
| GROSS RENTAL YIELD | 24.24% |
| ANNUAL REVENUE | $62,289 |
| CASH ON CASH RETURN | 46.94% |
Conclusion
Conducting market research in San Jose is helpful for accuracy and knowing the potential profitability. With the various tech industries & recreational activities to do in San Jose, it can certainly generate a nice cash flow for property investors. However, it’s not recommended for property investors with a limited budget as the cost of living is 81% higher than the national average. There are certainly other cities in California that one can discover!
As long as the potential revenue is calculated using an Airbnb profit calculator., it’s definitely worth the time & effort to invest and speak with a short-term rental expert to make the wisest decision for property investment that you wont regret.
