TOP MARKETS to invest in with Airbnb

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TOP MARKETS to invest in with Airbnb

Michael PorchePro Member
Rental Property Investor · Boise, ID · Member since 2017 · 220 posts · 101 votes

I am looking at the following markets to invest with Airbnb for easy 50% COC returns:

  • Florida (Gulf Breeze, Navarre, Marathon, Pensacola)
  • Idaho
  • New York ( Rochester, Lake George, Sarasota)
  • Wilmington, Vermont
  • Shenandoah, Virginia

What are your thoughts on these markets? Let’s connect! I would love to know your take on these areas. 

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William Anderson
Rental Property Investor · Mississippi Gulf Coast · Member since 2022 · 206 posts · 168 votes
4y

Add the Mississippi Gulf Coast to that list.  Our prices are lower than any on your list Michael.  We have 12 casinos and lots of beaches.  The area is conservative and most cities permit vacation rentals.  I regularly help people find properties that will meet their financial needs.  Our prices are going up as and interest rates are up as well.  This is putting some strain on an investor's ability to buy a property and use it 100% as a vacation rental.  The market for vacation homes that are rented when the owners are not in residence is good and they can make financial sense.

I recently purchased two 10-year-old houses within walking distance of the beach for $127k each.  Turned them into vacation rentals and they are generating great income.  I sold a rehabbed house a little further from the beach but close to clients who converted it to a vacation rental, and they paid $198,000.  They told me it is getting good rental traffic.  Just some things to consider.

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  • Tim McKelvy
    Real Estate Agent · Fayetteville, AR · Member since 2022 · 7 posts · 4 votes
    4y

    We have a lot of AirBnBs in our market here in NW Arkansas. Bella Vista has over 250 miles of mountain bike trails so we have lots of visitors just for that. Then we also have the University of Arkansas in Fayetteville, there are a lot that are filled during football and basketball season. The only downside is a lot of the local municipalities are starting to limit how many STR can be in each city etc.

    1Reply
  • William Anderson
    Rental Property Investor · Mississippi Gulf Coast · Member since 2022 · 206 posts · 168 votes
    4y

    Add the Mississippi Gulf Coast to that list.  Our prices are lower than any on your list Michael.  We have 12 casinos and lots of beaches.  The area is conservative and most cities permit vacation rentals.  I regularly help people find properties that will meet their financial needs.  Our prices are going up as and interest rates are up as well.  This is putting some strain on an investor's ability to buy a property and use it 100% as a vacation rental.  The market for vacation homes that are rented when the owners are not in residence is good and they can make financial sense.

    I recently purchased two 10-year-old houses within walking distance of the beach for $127k each.  Turned them into vacation rentals and they are generating great income.  I sold a rehabbed house a little further from the beach but close to clients who converted it to a vacation rental, and they paid $198,000.  They told me it is getting good rental traffic.  Just some things to consider.

    10Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Michael Porche

    I would be careful of Shenandoah Virginia - having invested there pre covid people couldn’t give properties away in that area. From 2008-2018 real estate was awful. You could buy condos for $25k (which we did).

    I do not believe that market for STR's is sustainable.

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  • Serena Liao
    Investor · VA · Member since 2021 · 14 posts · 1 vote
    4y
    Quote from @Chris Seveney:

    @Michael Porche

    I would be careful of Shenandoah Virginia - having invested there pre covid people couldn’t give properties away in that area. From 2008-2018 real estate was awful. You could buy condos for $25k (which we did).

    I do not believe that market for STR's is sustainable.

    @Chris Seveney was that bad? During Covid, it was booming like insane…even now when a property with a little view or decent size or turkey , people are still bidding on it within a few days. 

    0Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y

    @Serena Liao

    People couldn’t give properties away even in 2019 before covid and they would sit on market for 6-12 months. Like I said we bought a condo for $25k and sold it during covid for close to $100k. Now $25k was a steal but it was sitting on the market. Why did this happen? Because during 2004-2007 people were buying and paying crazy prices because real estate will never go down. Many of these were 2nd homes or rentals and they then sat vacant for a long time and people could not afford two homes. They had a huge spike in inventory for a decade.

    Will this repeat? I don’t know I am just stating what it was like before covid which I think is a blip and threw the market into something that is not sustainable and not something I would consider to be the norm.

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  • Michael PorchePro Member
    OP
    Rental Property Investor · Boise, ID · Member since 2017 · 220 posts · 101 votes
    4y
    Quote from @Chris Seveney:

    @Michael Porche

    I would be careful of Shenandoah Virginia - having invested there pre covid people couldn’t give properties away in that area. From 2008-2018 real estate was awful. You could buy condos for $25k (which we did).

    I do not believe that market for STR's is sustainable.


    Good to know! So far we have a pretty strong ROI from Shenandoah. I dont know about the resale value in the future, but its been good thus far

    1Reply
  • Michael PorchePro Member
    OP
    Rental Property Investor · Boise, ID · Member since 2017 · 220 posts · 101 votes
    4y
    Quote from @William Anderson:

    Add the Mississippi Gulf Coast to that list.  Our prices are lower than any on your list Michael.  We have 12 casinos and lots of beaches.  The area is conservative and most cities permit vacation rentals.  I regularly help people find properties that will meet their financial needs.  Our prices are going up as and interest rates are up as well.  This is putting some strain on an investor's ability to buy a property and use it 100% as a vacation rental.  The market for vacation homes that are rented when the owners are not in residence is good and they can make financial sense.

    I recently purchased two 10-year-old houses within walking distance of the beach for $127k each.  Turned them into vacation rentals and they are generating great income.  I sold a rehabbed house a little further from the beach but close to clients who converted it to a vacation rental, and they paid $198,000.  They told me it is getting good rental traffic.  Just some things to consider.


     William! Would love to talk and see what you got going on down there

    0Reply
  • Michael PorchePro Member
    OP
    Rental Property Investor · Boise, ID · Member since 2017 · 220 posts · 101 votes
    4y
    Quote from @Tim McKelvy:

    We have a lot of AirBnBs in our market here in NW Arkansas. Bella Vista has over 250 miles of mountain bike trails so we have lots of visitors just for that. Then we also have the University of Arkansas in Fayetteville, there are a lot that are filled during football and basketball season. The only downside is a lot of the local municipalities are starting to limit how many STR can be in each city etc.


     I like this, haven't heard too much from this side of things

    0Reply
  • Serena Liao
    Investor · VA · Member since 2021 · 14 posts · 1 vote
    4y
    Quote from @Chris Seveney:

    @Serena Liao

    People couldn’t give properties away even in 2019 before covid and they would sit on market for 6-12 months. Like I said we bought a condo for $25k and sold it during covid for close to $100k. Now $25k was a steal but it was sitting on the market. Why did this happen? Because during 2004-2007 people were buying and paying crazy prices because real estate will never go down. Many of these were 2nd homes or rentals and they then sat vacant for a long time and people could not afford two homes. They had a huge spike in inventory for a decade.

    Will this repeat? I don’t know I am just stating what it was like before covid which I think is a blip and threw the market into something that is not sustainable and not something I would consider to be the norm.

    Thanks for sharing. There was a recent sold, 340K for 900sq ft riverfront A frame with a small yard… crazy 
    0Reply
  • Lucie Tighe
    Property Manager · Tampa, FL · Member since 2022 · 147 posts · 66 votes
    4y

    Florida is a great market, we have several locations across the state that are doing great.

    0Reply
  • Brian G.
    Rental Property Investor · Los Angeles, CA · Member since 2013 · 1k+ posts · 1k+ votes
    4y

    @William Anderson what is the expected annual gross revenue on the $127k properties you mentioned?

    0Reply
  • Cassidy BurnsBusiness Member
    Investor · Alexandria, VA · Member since 2016 · 859 posts · 460 votes
    4y

    I believe that the Shenandoah Valley (Massanutten, Wintergreen, Luray, etc.) with it's proximity to NOVA and Washington DC is going to be a great long term market.  Covid has caused a lot of DC city clients of ours wanting a getaway.  Some want to own, most don't.  Which means that you will have high income earners as tenants.  

    @Michael H. Cook has a great article on the Shenandoah Valley regulations, I'll let him resurface that feed. 

    [email protected]540-960-1507
    3Reply
  • Eric Yu
    Real Estate Agent · Seattle, WA · Member since 2019 · 243 posts · 246 votes
    4y

    Can +1 to Shenandoah! Spent a lot of time trying to get a deal in McGaheysville. Great cash on cash there, but I'm not sure how the appreciation will be there. 

    1Reply
  • William Anderson
    Rental Property Investor · Mississippi Gulf Coast · Member since 2022 · 206 posts · 168 votes
    4y

    First year about $40k gross.  

    0Reply
  • Michael H. CookPro Member
    Real Estate Agent · Staunton, VA · Member since 2018 · 56 posts · 61 votes
    4y

    Thanks @Cassidy Burns here is the BP link to that article:

    https://www.biggerpockets.com/...

    2Reply
  • Tim McKelvy
    Real Estate Agent · Fayetteville, AR · Member since 2022 · 7 posts · 4 votes
    4y
    Quote from @Michael Porche:
    Quote from @William Anderson:

    Add the Mississippi Gulf Coast to that list.  Our prices are lower than any on your list Michael.  We have 12 casinos and lots of beaches.  The area is conservative and most cities permit vacation rentals.  I regularly help people find properties that will meet their financial needs.  Our prices are going up as and interest rates are up as well.  This is putting some strain on an investor's ability to buy a property and use it 100% as a vacation rental.  The market for vacation homes that are rented when the owners are not in residence is good and they can make financial sense.

    I recently purchased two 10-year-old houses within walking distance of the beach for $127k each.  Turned them into vacation rentals and they are generating great income.  I sold a rehabbed house a little further from the beach but close to clients who converted it to a vacation rental, and they paid $198,000.  They told me it is getting good rental traffic.  Just some things to consider.


     William! Would love to talk and see what you got going on down there


     Absolutely happy to chat anytime-I'll try and reach out this week.

    0Reply
  • Ricardo Hidalgo
    Real Estate Agent · Member since 2019 · 569 posts · 257 votes
    4y

    The homes In Navarre on the North side that are 5-10 minutes from the beach are doing really well for air bnb. I have a client that grossed $14,000 in 45 days with operating expenses of 5,000!

    0Reply
  • Kevin Holmes
    Member since 2022 · 3 posts · 0 votes
    4y

    @William Anderson I would be interested in properties similar to what you described in that area.

    0Reply
  • Matthias Pieplak
    Rental Property Investor · Salisbury, MD · Member since 2021 · 18 posts · 7 votes
    4y
    Quote from @Chris Seveney:

    @Michael Porche

    I would be careful of Shenandoah Virginia - having invested there pre covid people couldn’t give properties away in that area. From 2008-2018 real estate was awful. You could buy condos for $25k (which we did).

    I do not believe that market for STR's is sustainable.

     @Chris Seveney - Hi Chris,
    Why do you think STR's are not sustainable in this market? When reading the thread the discussion evolved around property values. What about supply and demand for nightly stays? I wonder if the area has strong marketing initiatives? Virginia certainly has been rising in popularity in general, which would confirm what @Cassidy Burns has shared.

    0Reply
  • Chase Hoover
    Real Estate Broker · Staunton, VA · Member since 2019 · 194 posts · 216 votes
    4y
    Quote from @Matthias Pieplak:
    Quote from @Chris Seveney:

    @Michael Porche

    I would be careful of Shenandoah Virginia - having invested there pre covid people couldn’t give properties away in that area. From 2008-2018 real estate was awful. You could buy condos for $25k (which we did).

    I do not believe that market for STR's is sustainable.

     @Chris Seveney - Hi Chris,
    Why do you think STR's are not sustainable in this market? When reading the thread the discussion evolved around property values. What about supply and demand for nightly stays? I wonder if the area has strong marketing initiatives? Virginia certainly has been rising in popularity in general, which would confirm what @Cassidy Burns has shared.

    I may be a little biased as an STR broker and investor in the Shenandoah Valley, but I don't see any reason for hesitancy here. The fuel of this market is having multiple metros within a short drive - DC/NOVA within 1.5-2 hours, Richmond 2-2.5 hours, VA Beach 3-3.5 hours, not to mention smaller cities like Charlottesville and Roanoke (both 1-2 hours).

    When folks in these areas want a mountain vacation, they come here.  Try to book a cabin in the middle of fall (leaf changing season), I dare you!  Luray, Massanutten, and Wintergreen have been established vacation rental destiantions for generations.  Their economies rely heavily on tourism, and they support short-term rentals.

    Our management partner manages nearly 100 quality STRs around the Nelson County/Afton/Staunton areas and they have not noticed a slowdown at all this year.  If you have a quality rental with a quality listing (top 10% of rentals available), you're going to do very well.  If you have a crappy house, a crappy listing, or aren't using dynamic pricing, you're going to struggle.

    I'd never buy condos for STR, but you can still buy condos in some of the ski resorts for sub-$100k if that's your thing. Single family homes and cabins are going to continue to appreciate just fine. I doubt it'll ever be 2021 Gatlinburg style apprecaition, but it'll continue to follow Virginia's overall real estate trend for sure.

    Or, keep out of our market and let us keep buying great deals!

    2Reply
  • Chris SeveneyBusiness Member
    Moderator
    Investor · VA · Member since 2015 · 21k+ posts · 19k+ votes
    4y
    Quote from @Chase Hoover:
    Quote from @Matthias Pieplak:
    Quote from @Chris Seveney:

    @Michael Porche

    I would be careful of Shenandoah Virginia - having invested there pre covid people couldn’t give properties away in that area. From 2008-2018 real estate was awful. You could buy condos for $25k (which we did).

    I do not believe that market for STR's is sustainable.

     @Chris Seveney - Hi Chris,
    Why do you think STR's are not sustainable in this market? When reading the thread the discussion evolved around property values. What about supply and demand for nightly stays? I wonder if the area has strong marketing initiatives? Virginia certainly has been rising in popularity in general, which would confirm what @Cassidy Burns has shared.

    I may be a little biased as an STR broker and investor in the Shenandoah Valley, but I don't see any reason for hesitancy here. The fuel of this market is having multiple metros within a short drive - DC/NOVA within 1.5-2 hours, Richmond 2-2.5 hours, VA Beach 3-3.5 hours, not to mention smaller cities like Charlottesville and Roanoke (both 1-2 hours).

    When folks in these areas want a mountain vacation, they come here.  Try to book a cabin in the middle of fall (leaf changing season), I dare you!  Luray, Massanutten, and Wintergreen have been established vacation rental destiantions for generations.  Their economies rely heavily on tourism, and they support short-term rentals.

    Our management partner manages nearly 100 quality STRs around the Nelson County/Afton/Stauton areas and they have not noticed a slowdown at all this year.  If you have a quality rental with a quality listing (top 10% of rentals available), you're going to do very well.  If you have a crappy house, a crappy listing, or aren't using dynamic pricing, you're going to struggle.

    I'd never buy condos for STR, but you can still buy condos in some of the ski resorts for sub-$100k if that's your thing. Single family homes and cabins are going to continue to appreciate just fine. I doubt it'll ever be 2021 Gatlinburg style apprecaition, but it'll continue to follow Virginia's overall real estate trend for sure.

    Or, keep out of our market and let us keep buying great deals!


     My initial comment was based on owning an asset there prior to covid and I would ask any realtor what was the market like from 2010-2018. Granted its not 2018 but what my point is besides the start of covid, this area was not a hopping place to go even though its not far from DC.

    I personally do not believe its sustainable and was driven up by the fact people were stuck in there homes for over a year and could find a place to get away and go outdoors. 

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  • Kingsley Thomas
    Member since 2021 · 34 posts · 29 votes
    4y

    Chris, 

    Where do you think DC people will travel to?  As far as drive-to markets.  Especially in winter.

    1Reply
  • Michael H. CookPro Member
    Real Estate Agent · Staunton, VA · Member since 2018 · 56 posts · 61 votes
    4y

    I agree with the majority of what @Chase Hoover said, Virginia may never be the hottest market in the country but there are a lot of great assets to be had , just have to know the correct submarkets of the Shenandoah area since it is so large.  1.765M visitors to the the SNP on average since 1962; not a bad track record, especially as DC/NOVA populations continue to grow.

    2Reply
  • Michael PorchePro Member
    OP
    Rental Property Investor · Boise, ID · Member since 2017 · 220 posts · 101 votes
    4y
    Quote from @Lucie Tighe:

    Florida is a great market, we have several locations across the state that are doing great.


     Love it! I actually am looking to do some buying in your hood. More for personal reasons. Lets connect. I'll be out there in a few months

    1Reply
  • Michael PorchePro Member
    OP
    Rental Property Investor · Boise, ID · Member since 2017 · 220 posts · 101 votes
    4y
    Quote from @Michael H. Cook:

    I agree with the majority of what @Chase Hoover said, Virginia may never be the hottest market in the country but there are a lot of great assets to be had , just have to know the correct submarkets of the Shenandoah area since it is so large.  1.765M visitors to the the SNP on average since 1962; not a bad track record, especially as DC/NOVA populations continue to grow.


     Whats your story??

    0Reply
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