Last updated on June 21st, 2023
airbnb property investment Albuquerque
Albuquerque has plenty of interesting museums and buildings which attract tourists from across the globe. Not to mention that this city has been featured in popular movies like The Avengers and Breaking Bad, so it would be even cooler to promote a property in this city!
In addition to this, it’s still recommended learning about buying a property for Airbnb in order to make sure that it’s profitable. To begin with, it’s certainly important to consider the major costs and revenue before deciding to purchase a property in Albuquerque. Another excellent option is to do rental arbitrage in Albuquerque as it’s fairly popular and does not require you to purchase a property at all.
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” If you’re considering buying an Albuquerque real estate investment property, the sheer size of the metro area is a point in its favor.”
– Norada Real Estate Insights on Albuquerque Properties Trend
Aside from looking at a property’s fascinating architectural design, proximity to major tourist areas, and accessibility to the best go-to places, the primary step is to determine profitability. In this article, we’ll discuss the metrics in order to gauge the best property investment.
This includes the best website recommendations for property investment in Albuquerque, property gross rental yield, cash-on-cash return, and annual revenue, along with some of the most ideal and profitable properties according to their location. Stoked to learn more? Continue reading!
Why Invest in a Property in Albuquerque?
It’s a given fact that Albuquerque is a charming city where you can enjoy different experiences like an exciting tour of Watermelon Mountain, exploring interesting places in the Old Town or getting the best views while taking a flight in a hot-air balloon, but what else is there to know? Here are some of the major reasons why you should consider buying a property for Airbnb in Albuquerque:
1. Affordable real estate market
Albuquerque’s housing market will surely catch investors’ attention as it’s relatively cheaper than other cities in the State and 13% lower than the national average. Here, investors can find a wide range of property types, whether they prefer to own a studio, a condo or a multi-family property, there will certainly be something for them. Based on Zillow Index, the median house value in Albuquerque is $318K with a one-year value change of 12.7%.
2. Property taxes are low
Aside from its affordable housing market, Albuquerque homeowners also enjoy the advantage of having low property taxes while living in the largest city in New Mexico. The property tax rate here is 1.8%, making this city really attractive when it comes to buying a house.
3. Unique culture with a rich diversity
Albuquerque is known for its wide cultural diversity and warm hospitality towards newcomers. Its welcoming atmosphere, the great food scene as well as its many exciting outdoor activities like camping, hiking or fishing draws lots of travelers to this place. In fact, when it comes to tourism, Albuquerque welcomes around 2M visitors annually.
Expectations When Buying A Property in Albuquerque
Aside from the pros of investing in a property in Albuquerque, let’s discuss some of the cons so you can know what to expect when living in this fascinating city. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. High crime rate
Safety is certainly a major aspect to consider when looking for a place to invest in. Unfortunately, Albuquerque doesn’t have the best reputation when it comes to the crime rate since the chance of becoming a victim here is 1 in 17. Neighborhoods like the North Valley, Los Ranchos, Corrales, and other northeast areas are usually safer. In addition to this, it will also be a good idea to consider looking for a reliable home security system.
Best Neighborhoods for Airbnb in Albuquerque
Let’s take a closer look at the important Airbnb key metrics to discover which is the most profitable neighborhood in Albuquerque. Filtered for a 1-bedroom apartment, here is a brief overview of some of the most recommended and profitable neighborhoods:
airbnb property investment Albuquerque
1. Raynolds Addition
- Annual Revenue: $35,867
- Occupancy Rate: 93%
- Average Daily Rate: $98
2. Silver Hill
- Annual Revenue: $33,950
- Occupancy Rate: 92%
- Average Daily Rate: $87
3. Alamedan Valley
- Annual Revenue: $33,184
- Occupancy Rate: 76%
- Average Daily Rate: $102
Is Property Investment Profitable in Albuquerque City Centre?
Using an Airbnb income estimator, it was discovered that a 2-bedroom apartment in Albuquerque City Centre can generate an annual revenue of $41,821 with a steady occupancy rate of 85% and a nightly rate of $110.
airbnb property investment Albuquerque
Newly Constructed Houses For Sale in Albuquerque City Centre
Finding the best properties that have the potential to produce high yields and capital growth are certainly some of the preferences of major investors. It’s always best to ask for assistance from real estate agents to access exclusive and unique properties during the development stage.
At the same time, it’s even better when a property investor like you conducts research about predicted growths and market forecasts. Here are some of the profitable properties in Albuquerque City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:
2800 Vail Ave SE Unit 177, Albuquerque, NM 87106
1. Studio-type Property for Sale Albuquerque
- 0.8 miles to Bandelier Elementary School
- Asking Price: $85,000
| GROSS RENTAL YIELD | 23.29% |
| ANNUAL REVENUE | $19,797 |
| CASH ON CASH RETURN | 44.10% |
7112 Pan American East Fwy NE Unit 148, Albuquerque, NM 87109
2. 1-Bedroom Type Property for Sale Albuquerque
- 0.9 miles to Edmund G Ross Elementary School
- Asking Price: $69,900
| GROSS RENTAL YIELD | 27.93% |
| ANNUAL REVENUE | $19,524 |
| CASH ON CASH RETURN | 58.03% |
349 Buffalo Cir SE, Albuquerque, NM 87123
3. 2-Bedroom Type Property for Sale Albuquerque
- 0.8 miles to Manzano Mesa Elementary School
- Asking Price: $95,000
| GROSS RENTAL YIELD | 27.05% |
| ANNUAL REVENUE | $25,702 |
| CASH ON CASH RETURN | 55.40% |
6118 Edith Blvd NE Unit 158, Albuquerque, NM 87107
4. 3-Bedroom Type Property for Sale Albuquerque
- 0.4 miles to Mission Avenue Elementary School
- Asking Price: $130,999
| GROSS RENTAL YIELD | 26.25% |
| ANNUAL REVENUE | $34,393 |
| CASH ON CASH RETURN | 53.00% |
6509 Karlson Dr NE, Albuquerque, NM 87113
5. 4-Bedroom Type Property for Sale Albuquerque
- 0.5 miles to Edmund G Ross Elementary School
- Asking Price: $150,000
| GROSS RENTAL YIELD | 29.45% |
| ANNUAL REVENUE | $44,177 |
| CASH ON CASH RETURN | 62.59% |
Conclusion
Before investing in a property, investors, it’s highly recommended to conduct market research for accuracy. Albuquerque can generate a good cash flow for property investors, as long as they target the right neighborhood and calculate the potential revenue using an Airbnb rental arbitrage calculator. While there are many other cities to invest in New Mexico aside from Albuquerque, it’s definitely worth the time & effort to speak with a short-term rental expert to make the wisest decision for property investment.
