Airbnb for Cash Flow in Jersey City?

Question

Hi!

My name is Charles I am new here at BP from Jersey City,NJ.  I am working on getting my first REI deal, so I have been planning on which is the best strategy to use in approaching the deal.  Most likely, my first deal would involve house hacking.  It appears that is the route that plenty of people with similar circumstances as me have taken and been successful in achieving their REI goals.

I wanted to see if anyone has had experience in Jersey City (especially in Bergen-Lafayette) in renting their places in the traditional sense and/or through Airbnb, Homeaway...etc.  My understanding is that Mr Fulop has tried to make it easier for owners to become Airbnb (or an equivalent) hosts.  Did that actually happen?  If so, how does it compare when dealing with taxable income from Airbnb to taxable income from traditional renters?

Since Jersey City has become a hot place to visit, I see how more people are preferring to cross over the Hudson river to stay rather than crossing over the East River.  I was hoping some of you would be able to share your experience and thoughts on the matter.

Thanks!

Charles H. · Answer

Hi @Jacob Freund,

Thanks for the info.  That is good to know.  At the moment, I do not have a place.  I am in the process of looking and in the process trying to see the best way to generate cash flow.  After listening to RE investors from the BP podcasts, it appears that some of them prefer airbnb.  I wanted to get better idea of the market in JC.

Where do you own in JC? I am sure the market is different thought the neighborhoods.  Downtown JC looks to have a higher premium but not sure the vacancy rate.

Charles H. · Answer

@David Weintraub,

That would be great!  I would love to get a better perspective of how the Airbnb market is out here.  Maybe there is an independent source that provides that info, I just have not found that.

What I have done is try and book a place from a few Airbnb listing in the area.  I would then check to see how many dates are showing as available for stay.  My only concern with that method is that the dates that the listings are showing as not available may be because the host just doesn't want to host anyone on those dates and not that guests are actually staying on those dates.

That is where I am with my search.  Any info would help.

Thanks!

David Weintraub · Answer

I can't speak to it.  I know people who do AirBnB over in Liberty Harbor, which is like a housing project for Google Employees.

I had friends stay in JC Airbnbs last month. If you want me to ask them to inquire about vacancy rates, I can do that.

Charles H. · Answer

@David Weintraub,

You are partly correct.  People do not really come to JC to visit, but they do stay here while visiting NYC since it is relatively cheaper than staying in NYC.  I live near a few places that only hosts people from Airbnb.  I have been here for 7 years and I have seen the changes in my experience.  As downtown JC develops, more and more people are choosing to live here as well.  I was curious which is more beneficial.. Airbnb or long term rentals.

Airbnb for Cash Flow in Jersey City?

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