Category: Airbnb Investment

Airbnb Calculator | Host Profit Estimator

Post author By jae an
Post date April 13, 2022

Airbnb Calculator

Instantly See Your Airbnb's Estimated Revenue

The leading Airbnb profit calculator in the short-term rental industry. Discover your Airbnb earnings potential.

Check out our Free Airbnb Calculator

Wondering how to make the most money from Airbnb? Use the Airbtics Host Profit Calculator, a free Airbnb calculator to simulate your return on investment and cash on cash return, with any address worldwide.

Enter any address on earth to access the following data points for free with full transparency:

How much can I make on Airbnb?

A simple way to estimate your Airbnb revenue is by multiplying the year-round occupancy rate and your average daily rate of 10 Airbnb listings in your area. If they charge $150/night on average and achieve a 70% occupancy rate, it’s fair for you to assume that you will make around $150*0.70*365, which is $38,325 before expenses and taxes.

Airbnb Occupancy Rate x Average Daily Rate x 365 = Your Airbnb Revenue

Currently, there is a lack of good short-term rental (STR) income calculators in the market, and the ones that are available do not clearly show how they calculated the numbers. If you want to know how much can you make on Airbnb, then use Airbtics’ free Airbnb calculator to get a full transparent computation of your potential Airbnb earnings based on 10 to 40 comps.

We believe that making data-based decisions should be easy and accessible for you. Whether you’re an Airbnb host, property manager, property investor, estate agent, or anything in between, access valuable data most relevant to you and your business.

How Does Airbtics Estimate Rental Income?

Airbtics is a short-term rental data platform providing historical, current, and forecasted rental income data. With the Airbtics app, you have access to over 15 million short-term rental listings from Airbnb and 54,000 visible markets globally. Since 2019, we’ve been tracking over 10 million rental properties weekly, which has enabled us to estimate rent of any address.

Our free Airbnb calculator has nearly 9,000 active monthly users–from Airbnb investors, hosts, property managers, real estate agents, and anyone who wants to know rental income on Airbnb investment property. Here are simple steps to use it:

We take our data accuracy seriously. Therefore, we update our data every week so our users can only get the fresh and latest Airbnb data from our app. Since 2020, the Airbtics data has 97% data accuracy in correlation with Airbnb’s financials. In fact, Awning’s Airbnb Estimator is powered by Airbtics.

Enter property address anywhere in the world

Enter the property address, select property type, choose the # of bedrooms, # of bathrooms, and whether the property has a pool. The provided details enhance the accuracy in generating optimal Airbnb estimated revenue.

You can also search directly in the Airbtics dashboard to calculate ROI of your property. All you need to do is to sign up for free.

What’s unique about our Airbnb Rental Calculator?

Our Airbnb profit calculator goes beyond the typical Airbnb calculators out there. With its notable features, you capture more insights to make smarter decisions.

Comps Transparency: Imagine you want to know how much money you can make from renting your house on Airbnb. This special tool not only tells you about houses nearby but also finds ones that are a lot like yours. That way, you can trust the information more and be sure you’re making a good choice for your rental.
Rental Arbitrage: This Airbnb calculator tells you how much money you’ll earn in Airbnb arbitrage by looking at things like how much you pay for rent, one-time costs, and monthly expenses. It helps you know if renting your place is a smart money move.
Mortgage Calculation: Let’s say you borrowed some money to buy your house, and you’re wondering if it’s a good deal. This free Airbnb estimator lets you put in the details, like how much interest you’re paying and how much you put down. It’s a calculator that helps you see if your house is making you money or not.
Comparison Tool: This free Airbnb tool is like having a magic way to see lots of different houses all at once. It helps you pick the best one by showing you how much money you can make, whether it’s all the money or just what’s left after paying bills. It helps you choose the one that will give you the most money. So, it’s like your money-making assistant!

Airbnb Investment FAQs

Is Investing in a vacation rental worth it?

Many studies have proved that housing is one of the most stable assets with a high average annual return. Note the annual return consists of home value appreciation and rental yield. By doing a vacation rental, you are renting it out for a shorter period at a higher price. This comes with a higher risk and seasonality, but the return is always higher.

Are you investing in a good market? Have population, income, and property prices been inclining last couple of years? Is there good long-term rental demand? if so, you can always turn your vacation rental into a long-term rental.

Where do I find short-term rental investment properties for sale?

Airbtics, Rabbu, The Offer Sheet, AirDNA, and Mashvisor are known companies providing property for sale data nationwide. All companies only provide such services to US investors, with the exception of Airbtics, which covers the UK, Australia, Canada, and European markets. Fill out the form below if you want to receive highly profitable deals.

Try AI-powered Investment Deal Sourcing By Airbtics

Tip: Verify your data with The ENEMY Method

Along with the calculator, you can also use the ENEMY method to ensure you estimate the accurate amount of revenue. The ENEMY method simply means going to the Airbnb site to find 5-10 listings that are most similar to the house you want to list on Airbnb. Then, check how many days are booked in the next 6-8 weeks. Also, check how many reviews on average they get every month. Compile them on an Excel sheet. You may see some interesting patterns.

Airbnb Earning Calculator FAQs

Which expenses should I include?

Monthly Expense: You should include 1) repayment portion of mortgage 2) bills and utilities and 3) supplies fee. You should not include cleaning fees. Airbnb guests pay the cleaning fee, so it isn’t included in either ADRs or expenses.

Yearly Expense: You should include 1) property depreciation 2) any other annual recurring fees.

What is a one-off cost?

One-off cost is a one-time expense (legal fees, refurbs, transaction fees, mortgage fees etc) you pay when purchasing property and paying for renovations. The one-off cost (combined with the down payment) is used to calculate Cash on Cash return.

I'm confused with profit tax

In most countries, you need to pay taxes on any profit generated from your properties. However, the way they calculate tax isn’t a flat rate. For example, in the U.K., you won’t have to pay tax on a certain amount of profit at first.

In that case, you can first simulate the profit with 0% profit tax, which will then show you how much your revenue and expenses are. Then, you can calculate yourself around how much % of tax you need to pay from your profit, then put that % in the profit tax section.

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Airbnb Investment All About Airbnb

Fractional vacation home ownership provider reviews (Pacaso, Kocomo, Everomes, ReAlpha etc)

Post author By Robyn Peña
Post date April 5, 2022

Do you want to take advantage of the rapid rise of the home-sharing economy but don’t have the capital to invest?

In 2022, you can be an Airbnb or vacation homeowner with $100, via investing in a fractional short-term rental fund. They will allow you to buy a share of vacation property similar to buying a share of a company. Keep on reading to learn more!

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Why invest in Short-term Rentals?

Before diving deeper into fractional short-term rental funds, let’s see why one would want to invest in vacation homes.

The home-sharing economy is rapidly growing even during the pandemic, in fact, the pandemic was the opportunity for Airbnb to take a big share of hotel businesses. In major staycation destinations in the US, we have observed a 32% – 51% surge in 2021 alone.

$fractional vacation home ownership$

A typical long-term rental property generates 1-5% a year but a short-term rental produces 5-25% a year. It is riskier and less passive than managing long-term rentals, but this can be an attractive option for someone who has retired and is looking forward to doing a small amount of work while befriending guests!

How do I choose the right fractional vacation home ownership company?

Companies like Pacaso, Here, Everomes, Kocomo, and PartBnb allow you to purchase a share of a specific vacation home. This gives you full control of choosing a vacation home for investing. On the other hand, ReAlpha is a short-term rental fund, so they’ll manage a bunch of short-term rental portfolios and you are buying a fractional share of the portfolios.

One of the benefits of investing in a fund is a lower risk since they will hedge their risk by investing in multiple properties.

$fractional vacation home ownership$

As I mentioned earlier, you can invest with as little as $100 for Here or $1,000 for ReAlpha. Yet, if you are looking to have more “real” ownership (also known as vacation home co-ownership) like staying at the property you partially own, Picasso or Everomes offer what you need. You have to purchase at least 15% of the entire property price, yet you can stay in those properties for up to 6 weeks a year. If staying at a vacation rental a few weeks a year is what you need, these offers may work better.

Looking for Partial vacation homeownership in the US & Mexico?

Kocomo probably is the best bet if you are looking for somewhere close to the US. It is a Mexico-based startup with about a $60M fund available for investing in vacation rentals. They currently have 27 vacation rentals in both Mexico and Miami.

$fractional vacation home ownership$

Here.co was only founded in 2022, and they have secured $2 million in funding in a pre-seed round, and they will start investing in Florida vacation homes. You can start investing with as little as $100, but they only have 1 property for investment currently! PartBNB focuses on Caribbean vacation homes, and they have 3 upcoming investment opportunities.

Investing via fund?

ReAlpha was founded in 2020 founded by Giri Devanur who has experience in taking a company to NASDAQ in the past. This company has a $6 million fund as of now, with 40 employees based in Ohio. They are planning to invest in Texas primarily.

$fractional vacation home ownership$

You can invest with as little as $1000, but here’s a thing, you are not investing in a specific vacation home, but you are investing in the fund. They will purchase a bunch of vacation homes on your behalf and generate profits and will share that with you. We have written an in-depth review of ReAlpha below.

Looking for Shared ownership of Luxury vacation homes?

$fractional vacation home ownership$ Pacaso focuses more on luxury short-term rentals, and they have around 85 vacation homes that investors can choose from, as of 2022 March. The minimum amount of investment you need to make starts from $500,000 for 15% (⅛) of ownership. Second home shared ownership in the US just got easier with Pacaso!

Everomes focuses on European holiday homes, and they have about 55 different investment options. You will share a vacation home investing with 7 other people, so you will own 15% of the ownership. They have homes in beautiful Alpes and the Mediterranean sea. If you are looking to have a luxurious stay in Europe while generating some passive income, Everomes could be your best bet!

Is reAlpha a good investment?

Here are our reAplha reviews. Once you sign up, they will ask you a series of questions, such as your name, address, and if you are an accredited investor or not. You will be able to invest even if you are not an accredited investor, so don’t worry. They’ll ask how many shares you’d like to invest and then generate a contract for you. That is it!

This was quite an obscure process since we want to exactly know which properties they will be investing in before signing a contract. So we dug into the contract a little deeper, and there were a few fine prints, which other Reddit users have discovered.

We have looked into a few communities to understand what the actual users say. There seem to be a few caveats.

One anonymous user from Reddit warns: “I was super excited about ReAlpha till I spent the time reading the Reg A+ Circular. Investing in ReAlpha Asset Management is not the same as investing in ReAlpha Tech. Read pages 2 & 37 of the Circular: Investors who invest in the Reg A+ offering are putting up nearly all the money (~90%) for less than 16% ownership.

ReAlpha Asset Management only owns a few Airbnb homes but is selling shares at a valuation of $400 million. This is technically not illegal because it is disclosed, however, they are taking advantage of people’s laziness to do their own due diligence.”

Another anonymous user from Reddit stated: “Buy equity in specific properties just like you would buy stock or shares in a company. We pair you with a few like-minded investors to form a syndicate, so together you can cover the down payment. Investment properties usually require a 25% down payment, but with reAlpha it’s 10% because of our relationship with lenders, making it more affordable. reAlpha is also part of each syndicate, retaining 51% ownership of each property so you know our interests are always aligned with yours.”

Conclusion

Fractional homeownership isn’t something new. There have been many shared ownership for short-term rentals, even private equity-like KKR or Blackstone have been investing in short-term rentals and making them available to their exclusive investors. However, with the rise of Airbnb, investing in short-term rentals is getting easier and more attractive with these new innovative startups.

Did you know that you can find out the return on investment of a vacation home with actual data points?

Sign up to our app now! Some of these companies are powered by Airbtics data as it allows investors to understand the market.

Tags Airbnb Investments

Airbnb Investment

Airbnb Calculator: How to estimate your earnings

Post author By Shivam Kaushik
Post date November 6, 2021

Want to estimate your Airbnb earnings? Our Airbnb Calculator is just the right tool for you. Even before you buy a rental property to utilize with the Airbnb method, you’ll need to put in a lot of effort. The Airbnb income estimation process is a part of this study. This is the process of attempting to calculate a rate or figure that represents the investment property’s potential for profit. The higher the number, the greater the revenue property’s potential. So, how do you calculate Airbnb Profits and earnings in order to locate good rental properties?

Our Airbnb income calculator allows you to simulate potential revenue generated through the properties you are/will be investing in and operating as short-term rentals.

From the average daily rate (ADR) growth and occupancy percentages to one-off costs, our Airbnb calculator can help you simulate your potential profit after tax and your potential cash on cash return.

Make a market analysis of Real Estate –

First and foremost, you must choose a decent location for your Airbnb investment property– one that is profitable– before attempting to calculate Airbnb income for a specific rental property. And after you’ve found one, you can estimate the total Airbnb income for the location. Of course, you may achieve all of this by doing a real estate market study. Essentially, this technique aids the real estate investor in determining the following:

Research the area’s real estate appreciation rates.
Combines historical Airbnb data with current rental statistics, as well as predictive analytics. In other words, you’ll have information that “predicts” the housing market’s future. In this manner, you’ll be able to learn about future real estate market changes and how they’ll affect your Airbnb earnings.
It determines whether the area you’ve chosen is suitable for Airbnb investment properties. Specific neighborhoods are sometimes better for traditional rentals, which means you won’t make as much money as you’d like.
The real estate market study will offer a great deal about the area’s rental demand. This is something you should be aware of because it will have a direct influence on your Airbnb rental income.
You’ll have a preliminary Airbnb income estimate for the location once you’ve gathered all of this information from your market analysis.

Analyze Potential Investment Properties

Completing an investment property study is the next step in estimating Airbnb rental income. Start exploring Airbnb properties for sale now that you’ve identified a good location. Once you’ve found a few rental houses that appeal to you, calculate the following Airbnb return on investment metrics:

Flow of Cash

You may estimate Airbnb’s earnings by looking at your cash flow first. Airbnb rental income minus monthly rental expenses are the primary sources of cash flow. Assume you earn $1,000 per month from your short-term rental property and spend $600 on the mortgage, upkeep, and insurance. After deducting $600 from $1,000, you will have a $400 positive cash flow.

Rate of Capitalization

The next step is to calculate the capitalization rate using the cash flow analysis. In a nutshell, the cap rate is the rate at which Airbnb returns are calculated in relation to the property price. As a result, the cap rate formula is as follows:
Net Operating Income/Property Price = Cap Rate

Return on Investment in Cash

The cash on cash return is the final return on investment metric for estimating Airbnb income. The capitalization rate is fairly comparable to this metric. Instead of dividing the net operational income by the property price, we divide it by the amount you spent out of pocket. Investment property finance is involved in this case. So you would have put down 20% or $32,000, as a down payment, with the remainder covered by the mortgage. As a result, we use the following formula to calculate the cash on cash return:
Net Operating Income / Actual Cash Investment = CoC Return
CoC = $4,800 / $32,000 * a hundred percent = 15%

Airbnb Income Calculator

Investing in Real Estate Tools

Estimating Airbnb income manually or using a real estate investment research worksheet and inaccurate tools like Airdna Calculator is impossible. To produce such estimations, any real estate investor, especially a rookie, requires the appropriate real estate investment instruments. At present, Airbnb calculators are scarce, and those that are available (like the Airdna calculator) do not clearly show the calculation process. As a result, we recommend that you use our Airbnb calculator to estimate Airbnb income more accurately. The core engine of our calculations is transparent and available online.

Airbnb Income Calculator FAQs

Most frequently asked questions and answers

What should I include in expense?

Monthly Expense: You should include 1) the repayment portion of the mortgage 2) bills and utilities and 3) the supplies fee. You should not include cleaning fees. Airbnb guests pay the cleaning fee, so it isn’t included in either ADRs or expenses.

Yearly Expense: You should include 1) property depreciation and 2) any other annual recurring fees.

What is a one-off cost?

One-off cost is a one-time expense (legal fees, refurbs, transaction fees, mortgage fees, etc) you pay when purchasing property and paying for renovations. The one-off cost (combined with the down payment) is used to calculate Cash on Cash return.

I'm confused with profit tax

In that case, you can first simulate the profit with s 0% profit tax, which will then show you how much your revenue and expenses are. Then, you can calculate how much % of the tax you need to pay from your profit, then put that % in the profit tax section.

Try out Airbnb Calculator Now

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Airbnb Investment All About Airbnb

Best Cities for Airbnb investment in 2022 Europe

Post author By Shivam Kaushik
Post date October 28, 2021

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Since Airbnb’s launch in 2008, many property owners have found that renting out holiday homes to short-term guests on the platform is a lucrative way to make money. Purchasing a rental property and renting it out on Airbnb is another popular real estate investment method. Real estate investors are presently conducting research to determine the best cities for Airbnb investment in Europe this 2022.

So, if you’re looking to invest in real estate this year by purchasing a short-term rental home, this article the greatest locations for Airbnb investing in 2022.

Best cities for Airbnb investment in 2022- Europe

1. Ballstad, Norway

Ballstad is the place to go if you’re looking for some excitement. It is well-known on a global basis due to its magnificent terrain. Local and international visitors are sure to flock to your event. Furthermore, because the allure is on the outside, you won’t have to worry about interior design or internal facilities (though they are still vital!).

In addition to this, Airbnb is legal to operate in Norway. According to Airbnb rules in Norway, there is a default limit of 90 days to host Airbnb in a condominium property type and a right to host 30 nights without permission.

According to our Airbtics Dashboard, Ballstadtops the list of Best cities for Airbnb investment in 2022-Europe. In summary, 89% of revenue comes from Multiple Nights Stays and an average listing gets 12 bookings annually, which generates $912 from cleaning fees. The average occupancy rate for a 2-bedroom property in Ballstad is 42%, with a nightly rate of $175 and annual revenue of $26,722.

2. Shanklin, England

Despite the fact that Brexit was a major setback for intercontinental travelers, it resulted in a shift in domestic travel for British citizens. Many Brits are electing to holiday in their own backyard rather than combing through paperwork, new laws, and visas, generating a surge in popularity for coastal communities like Shangri-La. This charming English town is located on the Isle of Wight, which has long been a popular British vacation destination.

The exciting part is, Airbnb is certainly legal in England. According to Airbnb rules in Isle of Wight, there are lesser regulations to operate Airbnb in this area.

According to our Airbtics Dashboard, Shanklin tops the list of best cities for Airbnb investments in 2022. 60% of revenue comes from Multiple Nights Stays. An average listing gets 36 bookings annually and generates £1,917 from cleaning fees. The average occupancy rate for a 2-bedroom property in Shanklin is 81%, with a nightly rate of £107 and annual revenue of £34,045.

3. Athens, Greece

Athens is one of the best Airbnb investments in 2022 because it has the highest return rate in comparison to other major European cities. With over 5% yield per annum, Athens attracts more property investors as its demand consistently grows.

The good news is, Athens has no strict laws against Airbnb. According to Airbnb rules in Athens, hosts will need to register and have a certain amount of time within a calendar year to operate an Airbnb in Athens.

According to our Airbtics Dashboard, Athens tops the list of best cities for Airbnb investments in 2022. 70% of revenue comes from Multiple Nights Stays. An average listing gets 24 bookings annually and generates €796 from cleaning fees. The average occupancy rate for a 2-bedroom property in Athens is 70%, with a nightly rate of €80 and annual revenue of €20,301.

4. Marseille, France

Marseille is a gateway to the Mediterranean, combining the magnificence of French architecture, food, and culture. It benefits from year-round tourism due to its combination of beautiful summer weather and inexhaustible cultural attractiveness. This is an excellent investment for a business owner who wants to keep bookings coming in the year.

According to Airbnb rules in Marseille, hosts are not allowed to let on a commercial basis of an entire property. This means that a property cannot be used as a primary residence to visitors staying for short time periods.

According to our Airbtics Dashboard, Marseille tops the list of best cities for Airbnb investments in 2022. 65% of revenue comes from Multiple Nights Stays and an average listing gets 24 bookings annually, which generates €1,311 from cleaning fees. The average occupancy rate for a 2-bedroom property in Athens is 59%, with a nightly rate of €110 and annual revenue of €24,536.

5. Funchal, Portugal

Funchal, located in the heart of Madeira, is one of Portugal’s most popular surf destinations. Funchal making waves in the real estate market. Popularity is extending beyond the major centres and into tiny communities like Funchal, like a younger brother to some of Madeira’s larger towns.

Here’s what you need to know: It is legal to operate an Airbnb in Portugal – also known as local accommodations. According to Airbnb rules in Portugal, hosts will need to register and get certain permits from local city councils.

According to our Airbtics Dashboard, Funchal tops the list of best cities for Airbnb investments in 2022. 60% of revenue comes from Multiple Nights Stays. An average listing gets 24 bookings annually and generates €1,272 from cleaning fees. The average occupancy rate for a 2-bedroom property in Funchal is 89%, with a nightly rate of €75 and annual revenue of €25,898.

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Airbnb Investment All About Airbnb

Best Cities for Airbnb investment in 2021

Post author By Shivam Kaushik
Post date October 25, 2021

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Since Airbnb’s launch in 2008, many property owners have found that renting out holiday homes to short-term guests on the platform is a lucrative way to make money. Purchasing rental property and renting it out on Airbnb is another popular real estate investment method. Real estate investors are presently conducting research to determine what the best cities for Airbnb investment in 2021 are.

So, if you’re looking to invest in real estate this year by purchasing a short-term rental home, you’ll want to know where the greatest locations for Airbnb investing in 2021 are.

Best cities for Airbnb investment in 2021

Incline Village, NV

Some of Lake Tahoe’s most stunning properties found in Incline Village. Homes with water views are desirable on the lake’s north bank, and beach access is even better. Incline Village has the atmosphere of a large country club rather than a normal vacation destination. Tennis facilities and golf courses are available for those who want to work off some sweat; thrill junkies can try mountain biking down the Flume trail, a steep road with spectacular views of the turquoise waters below. In the winter, there’s plenty to do, such as skiing at Diamond Peak Ski Area or visiting the spas and casinos.

According to our Airbtics Dashboard, Incline Village tops in the list for Best cities for Airbnb investment in 2021. There are overall more than 562 Airbnb listings out of which 39 are 1 bedroom. Monthly revenue for most properties being more than $6260/month with occupancy being more than 49%.

Sea Isle City, New Jersey

Sea Isle City is a charming seaside town on an island off the coast of New Jersey, complete with canals fashioned after Venice. Because it’s a small town, there aren’t many houses for sale, and prices might be high. However, given its proximity to both New York and Philadelphia, it’s simple to see why the city’s population swells throughout the summer. Condos or town homes with seaside views and close access to the downtown area are a more inexpensive option.

According to our Airbtics Dashboard, Sea Isle City, tops in the list for best cities for Airbnb investments in 2021. There are overall more than 2204 Airbnb listings out of which 287 are 1 bedroom. Monthly revenue for most properties being more than $4833/month with occupancy being more than 42%.

Fredericksburg, TX

Fredericksburg is a community in Central Texas with ruggedly gorgeous landscape, scattered live oaks, and tall-grass prairie. This region, dubbed “Texas Hill Country,” has drawn wealthy transplants looking for a gorgeous setting close to urban conveniences. Austin, to the east, and San Antonio, to the south, are each only an hour and a half distant. In this German-influenced town, there are plenty of places to dine and shop, and this is also Texas wine country, so there are dozens of vineyards where you can enjoy some fine Lone Star State pinot noir. Aside from the strong cowboy vibe, there are several cultural activities, including museums, theatres, art galleries, and a variety of festivals.

According to our Airbtics Dashboard, Sea Isle City, tops in the list for best cities for Airbnb investments in 2021. There are overall more than 790 Airbnb listings out of which 241 are 1 bedroom. Monthly revenue for most properties being more than $4488/month with occupancy being more than 47%.

Leavenworth, Washington

Leavenworth, a Bavarian hamlet on the West Coast, is full with Alpine-style structures and German restaurants. The community is located about two hours east of Seattle and serves as a gateway to local ski resorts and wineries. The Nutcracker Museum, which has hundreds of figurines, some dating back centuries, is a good option for those who prefer to stay near to downtown.

According to our Airbtics Dashboard, Sea Isle City, tops in the list for best cities for Airbnb investments in 2021. There are overall more than 219 Airbnb listings out of which 42 are 1 bedroom. Monthly revenue for most properties being more than $3829/month with occupancy being more than 46%.

St. George, Utah

St. George, which is just 90 minutes from Las Vegas and four hours from Salt Lake City, is a popular weekend getaway spot, with the whole range of sought-after resort-area amenities—golf, buzzy cafes, and outdoor adventure!—well-represented. Take in the red Navajo sandstone on the trails in Snow Canyon State Park, or cool off in the enormous reservoir at nearby Sand Hollow State Park. For the more adventurous, St. George is also a wonderful base camp for visiting certain national parks—Zion National Park is less than an hour away, and the Grand Canyon is about two and a half hours away.

According to our Airbtics Dashboard, Sea Isle City, tops in the list for best cities for Airbnb investments in 2021. There are overall more than 756Airbnb listings out of which 131 are 1 bedroom. Monthly revenue for most properties being more than $3698/month with occupancy being more than 57%.

FIND STATS FOR YOUR CITY – CLICK HERE

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Airbnb Investment All About Airbnb

Best Cities to start Airbnb Rental Arbitrage Business in the US.

Post author By jae an
Post date June 21, 2021

Best Cities to Start Airbnb Rental Arbitrage Business

The pandemic has hit short-term rental businesses all over the world, but it’s not the case in the US. It’s backed by data that many of the remote US destinations have experienced the most profitable Summer in 2020 and are looking for another profitable Summer in 2021. So it might seem the world is falling apart and everything is going down. But the data is speaking otherwise, according to 2020 airbnb data this is a great time to start your STR journey. The market is about to bounce back as people are craving the outdoors. So to help you focus more on the important things in your STR journey, and not the boring research part, we have compiled a list of the best cities to start Airbnb in US.

The Airbnb business is booming

The rental arbitrage model is extremely attractive for hungry and motivated entrepreneurs. You don’t need much money to get started with your first rental. In fact, you can even start by renting out your own room (and you stay the night at your car or friend’s house) to save up the initial deposit to start your first arbitrage unit. However, the rental arbitrage won’t generate passive income – It’s not true passive income because you constantly need to pitch to landlords and manage day to day operations.

What is Airbnb Rental Arbitrage?

Maximize your rental property revenue with more inventory and dynamic pricing tools.

Data-backed Market Research: You start with conducting thorough research about the market to find the profitable neighborhoods, amenities, and styles.

Pitch to landlords: Now you know the number and you know this property will generate profit for sure. It’s time to contact landlords to get permission to do rental arbitrage and get accepted.

Efficient operation & Profit: A lot of hustles in putting your listings on various channels, right pricing, and many other tactics. Still, I trust that you will be able to learn along the way as long as you have started with the right properties.

How to identify profitable rentals for rental arbitrage?

Make more informed decisions with the power of accurate data.

Definition of Arbitrage: In economics and finance, arbitrage is the practice of taking advantage of a price difference between two or more markets.

As the definition suggests, you need to find the gap between the “long-term rental market” and the “short-term rental market”. Fortunately, finding a long-term market base price is straightforward. You can easily find the market prices for the long-term rental market in Zillow. Finding the short-term rental market price is more difficult since looking at “daily rate” and “cleaning fees” on Airbnb isn’t enough because you also need to know “occupancy rates”. Therefore, the key to the success of rental arbitrage research is in short-term rental market research.

Then, what is the “key” of short-term rental market research? It is basically clearly identifying the range of profit of properties in different neighborhoods and by the size of properties.

The profit consists of three variables – 1) occupancy rate, 2) average daily rate and 3) expenses. The size of properties is a little bit more complex as it consists of the “number of bedrooms, bathrooms, and the total number of beds”. I will go through different tools to find out the occupancy rate and daily rate of different neighborhoods a little bit later.

How much does it cost to start your first rental arbitrage?

Stay up-to-date with relevant industry trends.

Don’t panic. After all, the starting cost is quite predictable once you do enough research.

Deposit
First-month rent
Furnishing (Beds, Sofa, Dishes etc)
Supplies (Here’s a checklist)

If I were you, I would start with basic furniture only – one mattress with a base and a cover per room, one used sofa, a pot, a pen, and plastic cutleries. Once I receive a few bookings, then, I will start investing more stuff like lamps, coffee pots, and so on. Starting with a huge budget will make you feel pressured to get a better return, so please be a minimalist when you get started.

Tips to do market research effectively and correctly

Use competitive and intelligent data to your advantage.

You need to make a comparison table to structure your research and efficiently search for your next properties. The template could look like below.

Profit before paying rent = (occupancy rate * daily rate) + cleaning fees (that you charged from guests) – cleaning fees (that you actually spent) – other expenses

Now you know the profit before paying rent, so now you can just identify which properties on Zillow can be profitable when you rent them. On Zillow, as of today (2021-06-20), there is only one property that can profit $500 a month to you.

How much does it cost to start your first rental arbitrage?

Stay up-to-date with relevant industry trends.

Now I guess you are wondering how much a short-term rental around your neighborhoods is making.

You can use our research tool to find it. You can choose one city, and if you zoom in to a specific neighborhood, it will show the average daily rate and occupancy rates from the short-term rentals on the map.

If you do research, you will find out that there are so many profit combinations (neighborhoods x property size).

Now let’s take a look at the best cities to start airbnb in the US.

Best Cities to Start Airbnb in US

To make it easy for you, below are some (not all) best cities to start Airbnb in the US that have possible profitable combinations for rental arbitrage.

There’s no point in giving you some numbers of expected rental arbitrage returns because it will be depending on the exact neighbourhood and the size of properties you are going to rent. Please do your thorough research to find out some areas where there’s a high demand for short-term rentals while having excessive long-term rental supplies.

What's next?

If you are doubtful about using data solutions, I’d recommend you to 1) speak to a property manager in your area 2) ask other Airbnb hosts in various Airbnb host’s communities 3) collect data on your own from Airbnb website.

If you are lost, you can find other Airbnb hosts from the following links.

Tags Airbnb Investments

Airbnb Investment All About Airbnb

Best Airbnb deals in Dallas (2021 Updated)

Post author By Shivam Kaushik
Post date June 9, 2021

Bring out your cowboy boots and get ready to explore the best deals in yet another amazing southern city of Dallas, being bordered with Mexico and with more than 42% Hispanic population, you’ll find fusion foods that are so amazing and unique that it’ll be hard to find such combinations anywhere else in the country. Dallas is the fastest growing city in the US currently with a 1.3 million population and it’s inviting more people to come and explore the culture. Here is the list of 9 Best Airbnb deals in Dallas that you can’t find anywhere else.

Downtown/Deep Ellum 1 BR – 3 guests ($60)

Located within walking distance to the city center, this place is great if you aren’t bringing your car with you, Sheraton Downtown and Deep Ellum are 2 min walking from this location. At this price point finding a place in the city center is near impossible.

Why is it the Best Airbnb Deal in Dallas?

Great location – walking distance from major Dallas attractions
Affordable with sufficient amenities for the price.
Free Parking
Experienced Host with 4.7 ratings and 650+ Review

Click Here to Book

Artist’s Loft Near Deep Ellum & Fair Park – 1BR | 2 Guests ($77)

If you love colors and artistic stuff and want to inspire the artist in you, then this loft near Deep Ellum is the perfect place for you, surrounded by trees and featuring the old original artwork the design and overall architecture will surely inspire you as soon as you enter the house, and the price will surely motivate you to stay a day extra.

Why is it the Best Airbnb Deal in Dallas?

15 mins from the Downtown Dallas
Beautiful design and artwork throughout the house
Free Parking
Super-Host with 4.99 Rating & 130+ reviews

Click Here to Book

Belle 2BR Bungalow | Downtown Med Center Stadium ($145)

This is an 1100 Sqft Duplex apartment on a half-acre property, located in the central Metroplex in a safe and quiet neighborhood. Great location only 30 mins from fort worth and 15 mins from the airport. This house is perfect for someone looking for some extra space and a quiet neighborhood to stay in peace with some lush greenery around the house.

Why is it the Best Airbnb Deal in Dallas?

15 mins from the Airport and Fort Worth
Safe and beautiful neighborhood with a big back and front yard
Free Parking
Super-Host with 4.91 Rating & 162+ reviews

Click Here to Book

2BR – 6 Guests | Near Main Street Garden Park ($164)

This house is managed by Sonder, which is a professional Airbnb management company. The overall vibe and design of this place are very modern and have been recently renovated so everything here feels new. This place has large windows and receives plenty of sunlight throughout the day, this place also has a fully functional equipped kitchen and all the smart appliances. There is a theater room, gym, and lounge in the complex which is accessible by the guests as well.

Why is it the Best Airbnb Deal in Dallas?

Modern design and recently furnished
10 mins walking from downtown
Digital Self-Check In
Gym, Lounge, and Theater Room
Experienced Host with 4.42 Rating

Click Here to Book

1BR house with hot tub, backyard, and private entrance ($70)

This spacious 1 bedroom house is located in Downtown Dallas and within walking distance of all the major spots in Dallas center. This is a pet-friendly house, also the host provides a bike to stroll around downtown and in the neighborhood. The house is also equipped with an electric car charger for all the Tesla drivers. This place also has a hot tub, fireplace, smart tv with Netflix, and free parking. For $70 this place is a steal in the center of downtown Dallas.

Why is it the Best Airbnb Deal in Dallas?

Super Host with 4.93 Rating
Plenty of amenities for the price
Budget-Friendly
Pet Friendly

Click Here to Book

1BR – 2 guests | Cozy Private Room ($45)

If you are on a budget and don’t mind sharing your place with someone else then this place can provide you a comfy home away from home at just $45, you will be a lockable private room and bathroom, this place is great for a solo traveler on a budget looking for a comfy place with all the basic amenities without shelling out a lot of money.

Why is it the Best Airbnb Deal in Dallas?

Super Host with 4.89 Rating
Super Affordable with all basic amenities
Fully functional stocked kitchen
Free Laundry
15 mins from Downtown

Click Here to Book

Bardo Lofts Studio | 3 Guests ($80)

If you are a sucker for modern design then this studio house is perfect for you, located in this newly constructed residential building. This place is perfect for anyone who wants to live in peace and luxury at the same time. Though being in a residential complex there are a lot of rules that you need to follow but if you love the design and price of this place then it’s totally worth it.

Why is it the Best Airbnb Deal in Dallas?

Modern Design and Architecture
Walking distance from Bishop Arts
New construction
Experienced Host with 4.70 Rating

Click Here to Book

3 BR – 6 Guests | Green House by Downtown ($102)

This is a perfect place for people looking for some extra space and is traveling with Pets. With a huge front and side yard, this palace is the perfect place for your pets to run around and it also has a deck patio to hang out and read some books in peace when your dog is creating havoc in the garden. This palace has 3 decent-sized rooms with 2 queens and 1 double bed. Free parking on premises is available for the guests.

Why is it the Best Airbnb Deal in Dallas?

Located in Downtown Dallas
Pet Friendly & Self check-in
Free Parking
Ample of space in the house
Super Host with 4.78 Rating

Click Here to Book

9 Guests – 3 BR | Cozy Bungalow Retreat by Downtown Dallas ($127)

Situated Northwest of Dallas and a short drive away from the Airport this large apartment can host up to 9 guests. The house is in close proximity to the historic Bird’s Fork Park which is great if you want to go on a morning hike. The apartment comes with 1 full-sized bed, 1 king-size bed and 1 Queen sized bed, and one Air Mattress, a fully stocked kitchen, and a backyard.

Why is it the Best Airbnb Deal in Dallas?

Great Location with private Backyard
60” TV with Netflix, Amazon Prime, Chromecast, HBO & Satellite
Pet Friendly & Self check-in
Free Parking
Super Host with 4.72 Rating

Click Here to Book

Tags Airbnb Investments

Airbnb Investment All About Airbnb

Best Airbnb deals in Houston (2021 Updated)

Post author By Shivam Kaushik
Post date June 8, 2021

There are a whopping 11,000 restaurants in Houston to tingle your taste buds, which is still way less when compared to the reasons why one should visit this amazing city, be it the Space Centers, Rodeo or NightLife, Houston has something for everyone, and the best way to explore Houston is to become a local, live like one and experience the lifestyle. We have curated the best Airbnb deals in Houston here so you don’t have to spend hours finding the right host and location, this list has something for everyone, from studio apartments to container homes most of which are located in prime areas.

3 BedRoom – 1100 Sq Ft Montrose Apartment with Patio ($99)

Accommodate 9 guests with 7 beds and a huge patio, for $99 this is a great apartment if you are a group of friends, or a couple looking for an amazing location to stay in Montrose, Houston. With 1 Gbps fast internet, 55” 4k TV with ESPN, HBO, Amazon, Netflix, and Hulu there will be plenty of content to keep you entertained throughout your stay. The place is Centrally Air-Conditioned with extra parking right in front of the building.