How to Invest in an Airbnb From Out of State
You may have been considering buying rental properties and then started seeing the comparison of long-term vs. short-term rentals.
Maybe you were thinking about buying a home you would like to retire into and can’t imagine how expensive they will be by then.
Local Vs. Out of State
Do not discount the fact that people are traveling to places within 50 miles of you. Anywhere there are hotels proves there is a demand for short-term stays.
How to Select a Market
From a purely financial perspective, you will want to choose a market with strong rental demand, low demand for property, and good prospects for property price and rental demand growth.
Here are the main expense categories:
– Property Taxes
There is a rule of thumb that a good Airbnb should make 3x the long-term rental rate. You can find an estimate for the monthly rent on Zillow or Rentometer.
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