How to Invest in an Airbnb From Out of State

There are plenty of reasons to think about investing in a short-term rental property out of state.

You may have just gone on a vacation and decided the people who own the place you are renting were making a killing.

Local Vs. Out of State

A much better reason is for the economics of it. If you are in an area where housing is in high demand and prices are in high demand, it will be hard to make money there.

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.

Airbnb Expenses

Here are the main expense categories: – Mortgage – Property Taxes – Utilities – Insurance – Cleaning – Maintenance

Airbnb Revenue

The revenue for each vacation rental is different, even if it is a condo in a community with many other short-term condos.

The Revenue Calculation

Short term revenue boils down to this equation: Revenue = ADR (Average Daily Rate) X Occupancy

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