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Airbnb Investment All About Airbnb

Investing in Property for Sale: How to Buy A Profitable Property for Airbnb in Brooklyn City Centre

airbnb property for sale Brooklyn City Centre

Brooklyn draws millions of tourists annually because of its interesting restaurants, bars, and museums which makes it worth visiting. Aside from being the home of iconic NYC attractions such as Coney Island, the Brooklyn Bridge, and Prospect Park, it also serves the best New York pizza!

Before deciding to purchase a property in Brooklyn, it’s certainly important to consider the major costs and revenue. While rental arbitrage in Brooklyn is fairly popular and does not require you to purchase a property, it’s still recommended to learn about buying a property for Airbnb in the future and making sure that it’s profitable. 

Before getting started, it’s also essential to consider the Airbnb rules in Brooklyn in order to operate an STR business without worrying about breaching the laws.

airbnb property for sale Brooklyn City Centre

Over time, Brooklyn homes and townhouses have increased in value. Based on a market report in Brooklyn, there is also an increase of 13.7% in new leases excluding renewals. This can also be related to the fact that there are plenty of millennials who keep moving from the densely populated and expensive Manhattan districts to the nearby neighborhoods in Brooklyn that are up-and-coming. 

Airbnb occupancy rates by city state that an average host in Brooklyn can earn up to $37,836 during the peak seasons of September. With over 7,454 Airbnb listings in Brooklyn, it’s certainly a catch for property investors.

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 Brooklyn, 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!

Is Property Investment Profitable in Brooklyn City Centre?

According to a recent report by PropertyShark, home prices in the highly-coveted Brooklyn neighborhood have exponentially decreased since last year. Using an Airbnb calculator, it was discovered that a 2-bedroom property in Brooklyn City Centre can generate an annual revenue of $109,612 with a steady occupancy rate of 88% and a nightly rate of $335.

airbnb property for sale Brooklyn City Centre

airbnb property for sale Brooklyn City Centre

Profitable Properties for Sale in Brooklyn 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. Some of the favorite neighborhoods in Brooklyn are Dyker Heights, Midwood, and Greenpoint. Here are some of the profitable properties in Brooklyn City Centre along with the calculated gross rental yield, cash-on-cash return, and annual revenue:

airbnb property for sale Brooklyn City Centre
airbnb property for sale Brooklyn City Centre

7416 20th Ave, Brooklyn, NY 11204

1. Studio-type Property for Sale Brooklyn
0.2 miles to Ps 186 Dr Irving A Gladstone

Asking Price: $110,000

GROSS RENTAL YIELD 25.29%
ANNUAL REVENUE $27,824
CASH ON CASH RETURN 50.12%
airbnb property for sale Brooklyn City Centre
airbnb property for sale Brooklyn City Centre

112-24 Northern Boulevard UNIT 3E, Corona, NY 11368

2. 1-Bedroom Property for Sale Brooklyn
0.1 miles to Helen M Marshall School

Asking Price: $105,000

GROSS RENTAL YIELD 24.93%
ANNUAL REVENUE $26,172
CASH ON CASH RETURN 49.01%
2-Bedroom Brooklyn
2-Bedroom Brooklyn

530 E 159 Street UNIT 1, BRONX, NY 10451

3. 2-Bedroom Property for Sale Brooklyn
0.2 miles to Ps 157 Grove Hill

Asking Price: $150,000

GROSS RENTAL YIELD 24.25%
ANNUAL REVENUE $36,369
CASH ON CASH RETURN 46.97%
3-Bedroom Brooklyn
3-Bedroom Brooklyn

151-31 88th Street UNIT 1H, Howard Beach, NY 11414

4. 3-Bedroom Property for Sale Brooklyn
Near Howard Beach

Asking Price: $199,000

GROSS RENTAL YIELD 22.84%
ANNUAL REVENUE $45,459
CASH ON CASH RETURN 42.76%
4-Bedroom Brooklyn
4-Bedroom Brooklyn

13437 155th St, Jamaica, NY 11434

5. 4-Bedroom Property for Sale Brooklyn
Very walkable to Springfield Garden

Asking Price: $270,000

GROSS RENTAL YIELD 24.47%
ANNUAL REVENUE $66,076
CASH ON CASH RETURN 47.65%

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 Brooklyn 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.

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Airbnb Rental Arbitrage All About Airbnb

Airbnb Rental Arbitrage in Brooklyn

Are you interested in achieving financial independence through passive income? Here’s a disclaimer: you don’t need to own a property to start the Airbnb rental arbitrage business. Learning about important Airbnb key metrics including average daily rates & annual revenue is just one step to forecasting successful investment. For instance, occupancy rates in New York City vary on your preferred area.

In this article, we featured the entire process of Airbnb rental arbitrage in Brooklyn, its profitability, along with the best areas and neighborhoods. Continue reading to learn more about short-term regulations and ways to convince landlords to sublet properties for rental arbitrage.

What is Rental Arbitrage? 

Rental Arbitrage is a perfect way to start an Airbnb business with no money. By convincing landlords to lease you a property, you can furnish and sublease it on Airbnb and VRBO. No need for you to buy a property.

It is perfectly legal and is a proven scalable business model. In my podcast, I have spoken to various entrepreneurs doing Airbnb arbitrage full-time. 

Here’s a proof! In Brooklyn, Vida manages 23 listings and there’s a huge possibility that she doesn’t own all the properties. She has made $464,376 in the last 12 months.  

Brooklyn airbnb rental arbitrage

Is Rental Arbitrage Profitable in Brooklyn?

Before you dive in and start putting out your hard-earned money on a property, it’s important to know how much profit you can make. For instance, the best neighborhood to invest in is Park Slope where an average host can earn $6,903 monthly for a 3-bedroom apartment.

Using Airbtics’ income generator, you can easily discover that rental arbitrage in Brooklyn is profitable.

Brooklyn airbnb rental arbitrage
Profit & Monthly Expense in Brooklyn

Based on Airbtics’ data, you can earn a whopping $6,903 per month for a 3-bedroom apartment in Park Slope alone. With the data provided, you can certainly tell that investing in a property in Brooklyn is profitable.

Average Rent Price Airbnb Monthly Revenue Monthly Expense Monthly Profit
$4,200 $6,903 $1,381 $1,322

Source: Airbtics dashboard

The monthly profit can be calculated by subtracting the Airbnb monthly revenue, the rental price, and the monthly expenses ($6,903 – $4,200 – $1,381 = $1,322).

 Startup Cost in Brooklyn

Now that you have an overview of how much your monthly expense & revenue, let’s talk about the start-up cost. How long does it take for an investor to get back the startup cost? Let’s take a look at this calculation:

Total Startup Cost (Average startup cost + 2 months rent price) Cash Return Time
$10,400 8 months

The average estimated startup cost (for furnishing) in Brooklyn is around $2,000. To compute the total startup cost, it is necessary to add the 2 months of average rent price ($8,400). Now that we have a total startup cost of $10,400, cash return time can be calculated by dividing this by the monthly profit ($1,322). 

Given your monthly revenue of $1,332, it will take approximately 8 months time to get back the startup cost! In such a short period of time, you can already expect profit and consider starting your second unit for rental arbitrage. If this sounds promising to you, then go ahead and look at the other best areas for rental arbitrage in Brooklyn.

Best Areas for Rental Arbitrage in Brooklyn

Before investing in a particular area in Brooklyn, you have to take a look at the top markets and number of listings to set your expectations towards success. Check out the top 3 suburbs in Brooklyn ranked by their annual revenue, along with their occupancy & daily rates:

1. Williamsburg

This neighborhood is known for food enthusiasts and offers an excellent selection of wine & cheese. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Williamsburg:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $2,600 $4,143 98% $250
2-bedroom $3,199 $5,029 95% $308
3-bedroom $3,800 $6,412 93% $552

According to our Airbtics Dashboard, there are more than 810 Airbnb listings with 314 private room properties and 284 one-bedroom properties in this area. The monthly revenue for most properties in Williamsburg is more than $4,121 per month with occupancy being more than 87%.

2. Crown Heights

Crown Heights’ street festivals, diverse communities, and historic architecture attract the majority of tourists in Brooklyn. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Crown Heights:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $2,025 $3,477 93% $164
2-bedroom $2,350 $3,477 91% $233
3-bedroom $3,000 $5,282 89% $307

This area has a total of 492 Airbnb listings with 232 private room properties and 133 one-bedroom property. The monthly revenue for most properties in Crown Heights is more than $3,811 per month with occupancy being more than 77%.

3. Park Slope

Park Slope has pedestrian-friendly sidewalks and a street full of restaurants, slope bars, and food markets. Check out the Airbnb data such as the average revenue, occupancy rates, and more in Downtown Park Slope:

Type of Bedrooms Average Rent Price Average Airbnb Revenue Occupancy Rates Average Daily Rate
1 bedroom $2,775 $4,614 97% $195
2-bedroom $3,495 $5,688 95% $334
3-bedroom $4,200 $6,903 97% $372

This area has a total of 179 Airbnb listings with 50 private room properties and 75 one-bedroom properties. The monthly revenue for most properties in Park Slope is more than $4,827 per month with occupancy being more than 90%.

how much can you make on airbnb

Short-term rental regulations in Brooklyn

To begin with, it’s certainly important to be familiar with the Airbnb rules in Brooklyn to make sure that your business will run smoothly. Here are some of the short-term rental regulations and laws to take note of:

  • Hosts are prohibited from renting out their entire home as an STR, even if one owns or lives in the building. When renting a private room in an apartment or home as an STR, the host must be present during the stay.
  • NYS Multiple Dwelling Law prohibits short-term rentals in buildings with three or more units.
  • New York City Building Code prohibits short-term leasing in one and two family homes.
  • In order to have short-term (less than 30 days) guests, a property owner or renter should take note of the following:
    1. You must be present during your guests’ stay if it is for less than 30 days and share your apartment or home.
    2. You may have up to two paying guests staying in your household for fewer than 30 days, only if every guest has free and unobstructed access to every room and each exit within the apartment.
    3. Internal doors cannot have key locks that allow guests to leave and lock their rooms behind them. All occupants need to maintain a common household, which means, among other things, that every member of the family and all guests have access to all parts of the dwelling unit. Internal doors with such key locks create barriers to escaping in an emergency and may result in the issuance of a temporary vacate order.
  • Under the NYC Administrative Code, property owners are responsible for ensuring their properties are maintained in a safe and code-compliant manner at all times. Property owners can and will be issued violations for any illegal short-term rentals at their property — even if it is conducted by tenants without the consent of the landlords.

Rental Properties in Brooklyn

There are plenty of best places to Airbnb in New York, particularly in Brooklyn. Here are the ranging prices of rental properties in Brooklyn:

1. Compass
sublet in Brooklyn
2. Trulia
sublet in Brooklyn

How to Find Landlords for Airbnb Rental Arbitrage

Airbnb investment through rental arbitrage is one of the best strategies to have passive income. However, it could be a challenge to find a landlord that allows their property for subletting on Airbnb. You can also convince a landlord by following the rental arbitrage email template & be extra creative! 

Here are ways how you can find landlords that allow Airbnb rental arbitrage:

  1. Real Estate Websites

Renters in the digital world who are looking for properties online can easily connect with landlords. Some of the most recommended online real estate websites which allow you to filter by city, state, or ZIP code are:

However, you can also find apartment & condominium properties online in the following websites:

  1. Search Engines & Marketplaces

There are numerous property owners who are leasing their properties and you can easily find them on Google & online marketplaces. Check out some of the most recommended marketplaces:

  1. Communicate with Landlords

If you are currently renting a space or know someone who is, then it’s also recommended to speak with them. Start by asking if there are vacant rooms or properties and let them know about your intentions of putting them up for rental arbitrage. They might also be able to recommend neighbors or local friends who are also interested in this idea!

Airbtics
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Airbnb Rules All About Airbnb

Airbnb Rules in Brooklyn

Airbnb Rules in Brooklyn

Airbnb Rules in Brooklyn

Learn about the Airbnb restrictions & rules in Brooklyn, New York City. Check out the occupancy rates, annual revenue, and more in Brooklyn.

Are you looking to invest in an Airbnb property in New York? If you have chosen Brooklyn in particular, then you’re on the right track.

There’s no doubt that the best places to Airbnb in New York are generating thousands of dollars which catches the attention of property owners and investors from all over the world. In addition to this, top-ranking boroughs in New York offer various investment opportunities that one should not miss out on.

Continue reading to learn more about Airbnb rules in Brooklyn and check out the profitability in this city.

Is Airbnb legal in Brooklyn? 

Let’s cut the story short: Yes, Airbnb is certainly legal in Brooklyn. With more than 265.5 million visitors annually, this city is home to the iconic Coney Island, Brooklyn Bridge, Prospect Park, and more. 

Here is a little proof! As of July 2022, there are 90,533 nights available in Brooklyn from Airbnb alone. Eugene manages 32 listings, while Kristina & Jack and Aleph operate 24 and 23 respectively.

How much can I make by running an Airbnb in Brooklyn?

Currently, there are 6,144 Airbnb listings in Brooklyn, with 47% of entire houses earning up to $4,198 a month. The Average Occupancy Rate in Brooklyn is 78% and the average daily rate is $108. According to vacation properties market data source Airbtics, a 2-bedroom apartment in Brooklyn can make up to $49,786 each year. Find out how much you can make on Airbnb by checking out our Short-Term Rental Calculator!

Brooklyn airbnb rules
What Are The Short-term Rental Accommodation Policies in Brooklyn?
  • Hosts are prohibited from renting out their entire home as an STR, even if one owns or lives in the building. When renting a private room in an apartment or home as an STR, the host must be present during the stay.
  • NYS Multiple Dwelling Law prohibits short-term rentals in buildings with three or more units.
  • New York City Building Code prohibits short-term leasing in one and two family homes.
  • In order to have short-term (less than 30 days) guests, a property owner or renter should take note of the following:
    1. You must be present during your guests’ stay if it is for less than 30 days and share your apartment or home.
    2. You may have up to two paying guests staying in your household for fewer than 30 days, only if every guest has free and unobstructed access to every room and each exit within the apartment.
    3. Internal doors cannot have key locks that allow guests to leave and lock their rooms behind them. All occupants need to maintain a common household, which means, among other things, that every member of the family and all guests have access to all parts of the dwelling unit. Internal doors with such key locks create barriers to escaping in an emergency and may result in the issuance of a temporary vacate order.
  • Under the NYC Administrative Code, property owners are responsible for ensuring their properties are maintained in a safe and code-compliant manner at all times. Property owners can and will be issued violations for any illegal short-term rentals at their property — even if it is conducted by tenants without the consent of the landlords.

Is Brooklyn A Profitable Area to Invest In?

If you’re worried about spending thousands of bucks to purchase a property, the good news is you have the option of not owning one. This is because there are many property investors who enjoy doing rental arbitrage in Brooklyn as a passive income!

Airbnb metrics are important in order to expect potential revenue and avoid losing hard-earned money. Before starting an Airbnb business, getting to know your preferred area’s occupancy rates, average daily rates, and annual revenue is important to achieve success.

By using an accurate short-term rental calculator, you’ll be able to confirm if Brooklyn is a good place for investment! In the digital era, it’s easy to discover your estimated annual revenue and high-return investment opportunities in Brooklyn.

Brooklyn airbnb rules

Source: Airbtics Dashboard

Brooklyn Rental Market 2022

Based on a recent report of Brooklyn’s rental market trend in 2022, the median asking price has increased by 6.6% and is expected to rise and its property values are on higher-end among all the boroughs in New York City.

Brooklyn airbnb rules

Source: Housing Market Trend in Brooklyn

Profitable Neighborhoods in Brooklyn

Here are some of the most recommended neighborhoods that you can look into & consider purchasing based on Airbtics estimator:

Suburbs Average House Price (1bd apartments) Average Rent Price Average Airbnb Revenue
Williamsburg $995,000 (694 sqft) $2,600 $4,413
Crown Heights $510,000 (489 sqft) $2,025 $3,107
Park Slope $750,000 (620 sqft) $2,775 $4,614

Source for Property Price: Properties in Brooklyn

Conclusion 

In general, considering the Airbnb rules & regulations in Brooklyn will help your Airbnb business to run smoothly! Aside from the fact that this is a passive income for various hosts, starting an Airbnb business is also a way to enjoy life and connect with new people from all over the world. Try Airbtics now and make the wisest investment decisions!

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Short-Term Rental Data
Find unsaturated neighborhoods with the highest occupancy history.

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Find unsaturated neighborhoods with the highest occupancy history.

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