In today’s show, we are investigating a hot topic in the real estate investing world, we are looking at Airbnb investing and asking the question, “is it still a viable option for short-term rental investing.”
You cannot have a conversation about real estate investing without, eventually, having it turn to people wondering if they can take advantage of the popularity of Airbnb and VRBO as options for their investment portfolio.
Erin has been renting out properties as short-term rentals since 2014. At that time she and her now husband, decided to serve the market and become experts in the short-term rental market.
We wanted to know if Erin thought the market is saturated. She says it really depends. You have to know your area and it varies from city to city.
One of the reasons for this is due to city codes and ordinances that prohibit short-term rentals (rentals 30 days or less).
If you are considering diving into the short-term rental market Erin suggests the following:
1. Do your due diligence.
- Know the law
- Contact your city planner office
- know the HOA and other community requirements
- Get insurance quotes for short-term investments
- Include utilities and other services into the calculations
- Know your upfront investment and long term costs
2. Research the Market
- Research the vacancy rates
- Research rental rates
If you are going to be a “hands-off” – hire a property manager and KEEP THEM and TREAT THEM WELL if they are good at what they do.
Provide a 24/7 way to get in touch with you in case of emergencies
Make sure you have the correct insurance for short-term rentals
AirDNA – is a paid service that can give you projections on Airbnbs
Mint – great for tracking your spending
Personal Capital – tracks your spending and track your net worth
ERIN ON THE FINAL QUESTIONS
One Money Lesson Erin Has Carried Over Into Her Financial Journey –
Be engaged with your hobby and if you can find a way to make money doing it – DO IT!
Erin’s Favorite Lifehack That Brings Her Joy
She LOVES personal development!
HOW TO REACH ERIN:
James Carlson Real Estate – firstname.lastname@example.org
Denver Graffiti Tour – email@example.com
ERIN’S FAVORITE READ
7 Habits of Highly Effective People – by Stephen R. Covey
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WE HAVE A NEW WORKBOOK!
This workbook is based upon out 7-Step Money Foundations course and can be used as a companion to the course, or on its own.
It is a NO NONSENSE designed to take you step-by-step through your finances and build a solid money foundation so that you can reach your money goals.