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.
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.
When thinking about short-term rentals and Airbnb, people usually jump to thinking about great vacation destinations.
The thing is, you are likely not investing in an out-of-state Airbnb 100% for financial reasons. There is probably some alternative motivation as well.
How to Select a Market
– Mortgage – Property Taxes – Utilities – Insurance – Cleaning – Maintenance – Furniture – Linens
There is a rule of thumb that a good Airbnb should make 3x the long-term rental rate.
Short term revenue boils down to this equation: Revenue = ADR (Average Daily Rate) X Occupancy
The Revenue Calculation
The decision to self-manage or hire a professional can depend on how much time you want to invest in your investment systems.
Self Manage or Hire Property Management?
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