Find Profitable Airbnb Investment Properties

Use data and navigate local regulations to maximize the ROI of your next investment

Let us help you navigate local regulations and find your next profitable Airbnb investment property. We use data to analyze the revenue, occupancy, nightly rate, and estimated home value to determine the areas and short term rentals that will generate the highest ROI for an investor. We also take the time to study and understand STR regulations in that area to ensure a smooth and easy permitting process once the home is purchased.

 

How Does it Work?

Our team of licensed realtors utilizes data and studies local STR regulations to find the most profitable short term rental properties. Whether you are looking for a vacation home that will pay for itself or simply trying to maximize your ROI, we have you covered.

The process starts with a quick consultation so we can understand your specific needs. We understand everyone is seeking an Airbnb investment property with a high ROI, something we are more than happy to help you locate. However, before we start crunching the numbers for profitability we need to make sure we understand everyone's individual situation. Some of the factors that impact any Airbnb investment property:

Image by Fabian Blank

Budget

First and foremost, we need to understand your budget. What is the minimum / maximum you are looking to spend on your vacation home or short term rental property? How much are you anticipating to use as a down payment? How far along with the mortgage pre-approval process are you? Anything you can let us know from a budgeting standpoint is helpful to make sure we can locate the perfect home.

Profitable STR Investment Property Location

Location

The short-term rental market can vary dramatically from one city to the next. It's important we understand the city/state you are looking to invest in so we can ensure we not only find the most profitable Airbnb home, but also one that will be allowable and compliant with all local regulations.

Airbnb Investment Property Features

Features and Amenities

Understanding the type of home you are looking for will go a long way. Perhaps you are only looking for short-term rental properties with a pool. Or maybe you are only interested in STR's with 4 bedrooms or more to make sure it can accommodate your entire family. Understanding any specific needs like these will help us narrow down the options and find the best STR investment property accordingly.

Profitable Airbnb Investment Uses

Intended Use

Are you planning on using this property throughout the year as a vacation home? If so, how many weeks of the year do you plan to use it yourself rather than renting it out as an STR? Or is this purely an investment property which will only be used by renters to maximize profit? These type of differences can sometimes impact the legality of offering your property as a short term rental (depending on local regulations).

 

Data Points We Analyze

Local Regulations

We take a deep dive into local STR regulations and city code to ensure you'll be able to secure a permit and list your STR without any compliance issues. Many cities and neighborhoods are instituting new regulations which could limit the potential profitability of your investment, so we check to ensure you are looking in the right places with favorable rules.

Estimated Annual Revenue

We examine various areas to determine the most profitable areas based on annual revenue of existing short term rentals. We can then use that data to look for trends to see what size house and amenities result in the largest potential ROI.

Estimated Operating Expenses

We help estimate annual operating expenses in advance to determine the true potential of any Airbnb investment. This includes local property tax responsibilities, lodging taxes, potential management fees, software costs, utilities, estimated maintenance costs, insurance, and more.

Average Daily Rate of Comparable Homes

The average daily rate of other successful STRs in the area can help determine the potential for any new investment. From one neighborhood to the next the average daily rate can vary dramatically, so we focus in on areas where it's highest resulting in the highest potential ROI for our customers.

Occupancy Rates and Seasonality

Understanding the market demand and seasonality of an area is a critical part of understanding the potential profitability of any home. If you find an area with an extremely high average daily rate (ADR) it's useless if the occupancy rate is only at 20%. Finding a combination of a competitive ADR with a higher than average occupancy rate is key. And understanding how those numbers may fluctuate throughout the year is important to ensure your property remains competitive regardless of the season.

Purchase Price, Cap Rate, ROI

We take all of these numbers from the entire area to help locate the most profitable areas, and to also help determine the profitability of any specific home. Based on the purchase price we can help determine a high and low range for the cap rate and we can use this information to dictate which properties provide the largest opportunity or to help determine financial expectations for any specific house you may be considering.

 
Image by Carlos Muza

Contact Us Today

With a partner like Simplify STR, finding a profitable vacation home or Airbnb investment property is easier than ever. We can not only help you navigate regulations to find the areas that are most favorable to STR's, but can also use data to help find the most profitable areas and homes for you to invest in.