Last updated on June 21st, 2023
Santa rosa airbnb property smart investment
Santa Rosa is known as the craft brew capital of the United States, but it also offers a diverse gastronomy with plenty of vibrant sceneries. In Santa Rosa, tourists can enjoy art galleries and museums in Downtown, featuring popular landmarks such as Snoopy’s Home Ice and Safari West.
Did you know that home values in Santa Rosa are consistently increasing? If you are looking to invest in a property where you can maximize profitability in Santa Rosa, then now is the right time to do so! Based on Zillow’s home value index, the home values in the city have gone up by 6.1% over the last twelve months ($759,641).
Source: Zillow on Santa Rosa CA Market
Pros of Buying An Airbnb in Santa Rosa, CA
Aside from the fact that Santa Rosa is a beautiful city surrounded by various farms and vineyards, there’s more to learn as to why we recommend purchasing a property in this city. Here are some of the major reasons why you should consider buying a property for Airbnb in Santa Rosa:
1. Exquisite Wine Country Lifestyle
If you’re looking to earn a passive income while drinking a fine glass of wine, then Santa Rosa is certainly the right place to start an Airbnb business! Not to mention its gourmet restaurants with various cuisines that attract many tourists from across the globe.
2. Creative Community
Home to several art galleries and museums, the community in Santa Rosa is always up for exciting murals, paintings, and even live music! This city also brags is summer repertory theatre festival which gathers all the creatives and students who want to learn about art as a career.
3. Higher Education Institutions
Real Estate US confirms that Santa Rosa’s institutions attract college students to study in the city because of its quality of life and job markets in the metropolitan area. This is also a perfect opportunity for property investors to cater to student accommodations.
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“Santa Rosa, California is a jewel in the heart of wine country. This area has grown steadily over the past five years, and shows no signs of slowing down. With strong unemployment numbers, rising list prices and a growing economy, there are solid pieces in place to carry the market for several years to come.”
– Rabell Realty Group on Real Estate in Santa Rosa CA
Cons of Buying An Airbnb in Santa Rosa, CA
Now that we know the pros of investing in Santa Rosa, let’s take a quick look at some of the cons. It’s always better to look at the two sides of each coin in order to properly set your expectations!
1. Difficulty in Transportation
Walk Score reveals that Santa Rosa is a car-dependent city, which could be a little difficult for guests who are commuting. While there is public transportation readily available, hosting in Airbnb Santa Rosa might also require your property to have a proper parking space or recommendations for getting around.
2. High Taxes & Cost of Living
Although the Santa Rosa community is overall offering the best institutions and places to be in, unfortunately, there are also high taxes and the cost of living can be more than you expect. Think Real Estate declares that due to the high wages in Santa Rosa, the cost of living can also be expensive. However, looking at the positive side, it’s always best to start an Airbnb business to generate nice profits so you won’t have to worry about the cost of living.
Profitable Neighborhoods for Airbnb in Santa Rosa
While Santa Rosa is undoubtedly one of the best property investment cities in the USA, 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 Santa Rosa:
Santa rosa airbnb property smart investment
1. Bennett Valley
- Annual revenue: $41,983
- Average daily rate: $119
- Occupancy rate: 91%
2. Oakmont
- Annual revenue: $66,909
- Average daily rate: $229
- Occupancy rate: 88%
3. Rincon Valley
- Annual revenue: $49,892
- Average daily rate: $155
- Occupancy rate: 77%
Is Property Investment Profitable in Santa Rosa?
Using a short-term rental calculator, it was discovered that a 2-bedroom apartment in Santa Rosa can generate an annual revenue of $64,223 with a steady occupancy rate of 74% and a nightly rate of $216.
Santa rosa airbnb property smart investment
Santa Rosa Properties for Sale
Buying a beach house property 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 Santa Rosa, CA, along with the calculated gross rental yield, cash-on-cash return, and annual revenue.
79 Coronado Cir, Santa Rosa, CA 95409
1. Studio-type Property for Sale Santa Rosa
- 0.4 miles to Maria Carrillo High School
- Asking Price: $100,000
| GROSS RENTAL YIELD | 19.46% |
| ANNUAL REVENUE | $19,455 |
| CASH ON CASH RETURN | 32.60% |
2412 Foothill Blvd Spc 23, Calistoga, CA 94515
2. 1-Bedroom Type Property for Sale Santa Rosa
- 0.5 miles Calistoga Elementary School
- Asking Price: $118,000
| GROSS RENTAL YIELD | 28.77% |
| ANNUAL REVENUE | $135,780 |
| CASH ON CASH RETURN | 60.53% |
192 Mosshill Ct, Santa Rosa, CA 95409
3. 2-Bedroom Type Property for Sale Santa Rosa
- 0.2 miles to Binkley Elementary Charter School
- Asking Price: $219,000
| GROSS RENTAL YIELD | 25.06% |
| ANNUAL REVENUE | $54,887 |
| CASH ON CASH RETURN | 49.42% |
91 Leisure Park Cir, Santa Rosa, CA 95401
4. 3-Bedroom Type Property for Sale Santa Rosa
- 0.1 miles J. X. Wilson Elementary School
- Asking Price: $275,000
| GROSS RENTAL YIELD | 24.25% |
| ANNUAL REVENUE | $66,685 |
| CASH ON CASH RETURN | 46.98% |
1316 Grand Ave, Santa Rosa, CA 95404
5. 4-Bedroom Type Property for Sale Santa Rosa
- 1.1 miles to Brook Hill Elementary School
- Asking Price: $464,100
| GROSS RENTAL YIELD | 24.41% |
| ANNUAL REVENUE | $113,308 |
| CASH ON CASH RETURN | 47.48% |
Conclusion
Since Airbnb is rapidly increasing and constantly changing for each city in the world, it is crucial to make decisions based on wild guesses. The data points mentioned in this article for Santa Rosa such as Airbnb occupancy rates, annual revenue, and average daily rate should be the primary basis before investing in a property.
Hence, if the data presented above has given you ideas to boost your strategic pricing plan for your business, then an Airbnb rental arbitrage calculator is certainly what you need for success in the long run. It’s a fact that some of the STR investors are also considering Airbnb Rental Arbitrage, but they still need to have a reliable data tool on which to base their conclusions!
As we live in a digital era, an accurate data analytics tool can help your business stand out among your surrounding competitors and benchmark your property by tracking the occupancy rates of competing listings in your preferred city.
