Airbnb has revolutionized the real estate game. With more real estate investment opportunities than ever, capitalizing on them is an excellent way to secure your financial future. Still, determining whether or not a property is a good investment is challenging without the right training, experience, and tools. Fortunately, the short-term rental data you can access through a premier Airbnb rental calculator like mbanc Invest makes this easier and faster than ever. Here is how to determine if a property is a good investment:
With real estate, location matters. A cutting-edge Airbnb rental calculator like mbanc Invest generates short-term rental analytics easier and faster than ever for users to access and leverage to master their market, no matter where it may be. Here is what to home in on:
Tourist and Business Travel
Firstly, we advise researching local tourist attractions. Because you are investing in a short-term rental, your Airbnb should be in a region that will experience considerable traffic, whether from tourists or other visitors.
Look up tourist attractions to determine if the market you are considering experiences a high influx of tourists, and research how popular a business travel destination the city is. Typically, the more popular the destination, the higher the nightly and occupancy rates.
Another factor to consider is local Airbnb regulations. These regulations can result in added expenses that cut into your bottom line and render a property an inadvisable investment. Before investing, we recommend researching local:
- Short-term rental taxes
- Short-term rental regulations
- Business regulations
- And more
Airbnb regulations vary from city to city and even county to county. Moreover, these regulations can change, so continuous research is imperative.
Seasonality is an essential component of determining whether or not a property is a good investment.
Moreover, seasonality is a variable that innovative Airbnb rental calculators like mbanc Invest provide unrivaled insights into through short-term rental data. Bookings fluctuate throughout the year and are often at the mercy of changing seasons and local events.
For a steady cash flow, you should purchase a property in a market with consistent bookings year-round. The more bookings you get, the higher your income will be. However, without extensive experience and considerable expertise, this is difficult to calculate.
Ultimately, calculating this boils down to two metrics: occupancy rate and seasonal occupancy rate, both of which estimators can supply you with instantly.
Selecting the right investment property is, in a way, like unpacking a Russian Doll: there are always metrics within metrics within metrics to consider, and they all have an impact.
After choosing the city, selecting the right neighborhood is critical to optimizing a short-term rental investment. Even in cities that are generally lucrative for investments, your return will vary from neighborhood to neighborhood.
Do your homework and evaluate other properties within prospective neighborhoods. While this can be difficult without connections or considerable real estate savvy, Airbnb rental calculators like mbanc Invest provide a comprehensive overview of comparable, live property listings in a neighborhood and the income they generate.
These short-term rental analytics enable you to achieve unmatched insights into any neighborhood nationwide to give yourself an undeniable advantage in every U.S. market.
Other Essential Short-Term Rental Data
Still, determining whether or not a property is a good investment requires taking several other key metrics into account, such as a property’s:
- Cash-on-cash return
- Cap rate
- Mortgage payments
- Projected nightly rate
- Operating expenses
- And much more
Ultimately, there are innumerable metrics that you must consider when choosing to invest in a short-term rental property. Without extensive training and experience, however, these can be nearly impossible to calculate and interpret.
Talk with Our Team to Learn More about our Airbnb Rental Calculator and the mbanc Advantage
When choosing a property to invest in, you must consider countless variables. More importantly, failing to do your due diligence can wreak havoc on your bottom line and squander the capital you invest in a property. Fortunately, the short-term rental analytics that premier vacation rental estimators like mbanc Invest generate empowers users to master their market and gain an indisputable advantage over the competition.
To instantly access all the key metrics you need to make an optimal, informed decision, talk with our team today to learn more about our estimator and the mbanc Advantage.