1 or 2 Bedroom AirBnb?

Question

Hello everyone! I would like to invest in a short term rental (Airbnb) property in Miami Beach. I’m trying to decide if I should purchase a 1 or 2 bedroom condo. Which would be more profitable?

Looking forward to hearing your thoughts and personal experience.

Tim Coffey · Answer

Here is my take, but know I just started mid-October so I am not a pro. I have a 2 BD 1BA apartment over my workshop. While I do not have the beds for a large family or group of friends, my place had been very busy with singles and couples looking to get away by themselves, seeking options other that hotels when in town for work, small gatherings of friends that cannot afford a larger place.

To me, I have more options and I don't have to wait on a larger group for a payday.It is also up to how you manage. I self clean and I do not want to clean up after 8 or more folks.

Also, though, location is part of the equation. I am around wedding venues, wineries, hiking trails, mountains, etc. My place would not be a destination for families who want to pool their resources for a larger place where they can stay together.

Brooklyn McCarty · Answer

Heads in beds equals more money.

However if you can only afford a 1 bedroom, there’s nothing wrong with that. Little properties can perform well too.

Joe Biscaha · Answer

@Roxan Wais-Shirley First, Take a look at the Miami Beach STR map. Most condos do not allow short term rentals. The condo buildings that do allow STR are mostly going to be condo-hotels (think W Hotel, Roney Palace, 1 Hotel, etc.) and these buildings do not qualify for conventional financing. Most investors who buy STR properties in Miami Beach pay cash.

Michael Baum · Answer

Hey @Roxan Wais-Shirley. Here is some info on Miami. Lots of restrictions - https://www.miamigov.com/Plann...

You are going to do better in an area where STRs are legal.

Mario I Fernandez · Answer

1 or 2 bedrooms will work since Miami Beach and Miami are very busy for STR.

Particularly I would stay out of Miami Beach since they have some restrictions and for sure they will have more in the future.

Anywhere around Miami Beach would work as well and you will have less restrictions on STRs.

Tyler Winget · Answer

1 and 2 bedrooms work well in different markets. Checkout BiggerPockets' tool with AirDNA rentalizer - https://www.biggerpockets.com/...

Luke Carl · Answer

More beds = more money. But you need to look into Miami first it is a known NoStr

Zach Edelman · Answer

Would definitely consult Air DNA on this one if you have an account and see how revenue estimates, occupancy, highest performing properties, etc. compare between 1 bedroom vs 2 bedroom condo's in Miami Beach.

Jon Martin · Answer

A similar thread popped up a few weeks back, and some posters shared some interesting data that the 1 bedrooms have better COC return (IIRC that was the metric used) than 2s and 3 bedrooms. The nice thing with a 1 bedroom is you can be more competitive with both your base price and your cleaning fee. Lots of couples and single travelers end up booking 2 bedroom houses even if they only need one bedroom because they want the amenities that typically come with it. I wouldn't write them off.

Brian Barch · Answer

to me, both can appeal to a couple, but only the 2 bed is going to also capture small families.  Obviously the price difference matters here as well.

1 or 2 Bedroom AirBnb?

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