First time investor help!!

[Matthew Murray]

Hi. I’m close to buying my first property but I’m experience some fear about which path I should take in terms of how I generate income. To start I’m taking the house hacking approach where I will be living in the property. But I’m torn on if I should do airbnb or try and rent out long term by the room? Airbnb is appealing because it’s more lucrative but I’m curious how steady it is however I would need to buy a house which are few right now with my budget. A town home looks better in terms of affordability but I’m concerned I may not be able to find people to rent out by the room in a town home. If someone could provide some insight into if I should try airbnb in a house or renting by the room in a house or do I go with a townhome and just try renting by the room?

Thanks so much.

[Bradley Sriro]

Hey @Matthew Murray, Airbnb bookings and vacancy rates are heavily dependent on the market you are in. If you are in a strong Airbnb market, then you will likely have fairly consistent bookings. In my opinion, if you are renting by the room, there won't be much of a difference on whether you purchase a SFH or a Townhouse. It wouldn't hurt to try your luck with Airbnb first to see how things go and if the revenue it generates is consistent enough for you. Just make sure that if you go the short term rental route that it is allowed where you purchase. Some gated communities and/or associations do not allow short term rentals... this holds true for both single family and townhomes. If you don't get the results that you are looking for with Airbnb after trying it out, then you can shoot for tenants that you would place on a long term lease. In South Florida, you can rent rooms out on average for between $800-$1,000 per month.

I would suggest looking at Airbnb listings in your market for things that would be similar to what you are trying to do. Pay attention to the nightly rates and look at their booking calendar to see if they are booked solid, on and off, or not at all. I hope this helps a little... Best of luck!