A Case Study: What You Can Earn from an Airbnb in Malibu

A Case Study: What You Can Earn from an Airbnb in Malibu

A Case Study: What You Can Earn from an Airbnb in Malibu

Investing in an Airbnb in Malibu is an enticing prospect, but the uncertainty surrounding the return can make prospective buyers hesitant to pull the trigger. This feeling is normal. After all, investments are a gamble, and there’s no such thing as a sure thing, right? 

While that may have been true in the past, our cutting-edge tool mbanc Invest enables buyers to forecast the ROI of an investment with unprecedented accuracy, meaning the days clouded by uncertainty are far behind you, and all you have to worry about is basking in the Airbnb profit that will shower down on you like California sunshine. 

Still, at mbanc, we don’t believe in making empty promises. Explore a case study of mbanc Invest in action to understand the unequaled advantage it offers:

An Airbnb in Malibu: About the Property

Let’s look at this Airbnb in Malibu property to understand the advantages mbanc Invest offers. This apartment is 1,130 square feet with 2 bedrooms, 2 bathrooms, and a bonus room. 

Constructed in 1972, it has central heating and two garage spaces. With beautiful ocean and mountain views, security services, and 2 garage spaces, it also provides access to storage, a shared clubhouse, tennis courts, a state-of-the-art gym, a laundry area, landscaping services, a hot tub, and a pool. 

On top of it all, it sits in a prime location. This property is a stone’s throw away from the beach, Malibu Pier, Malibu Colony Plaza, Whole Foods, and a Farmer’s Market. Currently, this property lists at $825,000. So let’s get into the projected Airbnb profit, shall we?

mbanc Invest in Action: An Airbnb in Malibu

Taking out an average mortgage, buyers can expect to pay $6,105 monthly ($73,260 annually) which includes principal, interest, property tax, homeowner’s insurance, and HOA fees. While this may seem like a significant expense, a closer look tells a different story. 

As an Airbnb, a short-term rental calculator like mbanc Invest reveals that it boasts a 71% occupancy rate. For context, anything over 65% is top performing. On top of that, this sits well above the national average, which is 48%.

What does this mean for your investment property? It means there will virtually always be tenants. Business won’t just be booming; it’ll be exploding.

You can expect an average daily rate of $872 from this property, meaning you only need a renter for 7 days per month (just one week) to cover the $6,105. But analytics show you can expect significantly more than one week’s worth of business.

In fact, on average, you can expect this property to earn $12,906 each month in Airbnb profit, which is well over double the mortgage payment, meaning you can pay it off and reap the rewards with the quickness. And trust us, we know what you’re asking:

What does that equate to annually? We’ll save you some work. An Airbnb in Malibu like this will net you a total revenue of $225,000. 

Still, maybe you’re wondering what amenities will cost. 

On average, annual operating expenses (amenities included) add up to $62,802, meaning the net operating Airbnb profit you can expect comes out to $162,228, which is well over double what you can expect to pay in annual mortgage payments ($73,260).

When all is said and done, you can easily earn $88,968 while the property literally pays for itself. And what can you do with that ample profit margin? Whatever you want. 

Reinvest it. Take a trip. Treat yourself. Using a tool like mbanc Invest with an Airbnb in Malibu like this can finance the future of your dreams. 

Talk with Our Team to Learn More About mbanc Invest and the mbanc Advantage

Investments can sometimes feel like a gamble, but when you use an innovative short-term rental property calculator like mbanc Invest, you eliminate uncertainty and turn that gamble into a sure thing. This tool can help evaluate any property anywhere in the United States in granular detail to gain unrivaled insight into the Airbnb profit you will earn.  

To learn more about mbanc Invest and how we can help conquer your market and finance your short-term rental, talk to our team. We can help finance the future of your dreams.

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