Have you bought an "Airbnb Business?"

[Katie Fiola Jones]

Hi everyone, 

I am considering the purchase of an Airbnb property. The seller is offering the property fully furnished and with the Airbnb business. It has only been operated as an Airbnb since December.  

I just wanted to see if there are others out there who have purchased Airbnbs and continued to run them as an Airbnb business. How does that work? Would you recommend it? 

Also, another layer to this - I haven't run an Airbnb business before - and the property is also out of state. 

I was also considering using it for traveling nurses or something along those lines. 

[Ethan Cooke]

@Katie Fiola Jones - I run a furnished rental business in the SF Bay Area. I don’t own any of the properties, and I get good cash flow from them.

What is your main goal in owning an AirBNB property? Given the opportunity you have, it sounds like a passive cash flow play. If you know the local RE market and the local AirBNB market very well and the price is right, then buying a property might make sense. But if not, I recommend that you start by renting a property, furnishing it and subletting it as a furnished rental. This will give you experience with the business and operational aspects of running an AirBNB property. You’ll learn what it takes to make money in a particular market, and your financial risk will be very low compared to buying a property.

Good luck!

[Eric P.]

Originally posted by @Katie Fiola Jones:

Hi everyone, 

I am considering the purchase of an Airbnb property. The seller is offering the property fully furnished and with the Airbnb business. It has only been operated as an Airbnb since December.  

I just wanted to see if there are others out there who have purchased Airbnbs and continued to run them as an Airbnb business. How does that work? Would you recommend it? 

Also, another layer to this - I haven't run an Airbnb business before - and the property is also out of state. 

I was also considering using it for traveling nurses or something along those lines. 

Some things to consider: How does occupancy project for the rest of the year? Be careful if you only have a few months of data. Also how does the asking price compare to other properties in that market? If the seller is asking more, you can buy a cheaper property & turn it into an airbnb (seller can ask a little more if furniture is included, etc). Also are you ready to manage a remote property? You'll need to learn how. Finally, is STR legal in this market? Many things to consider - take your time & do some research!

[Paul Sandhu]

If you have to ask a lot of questions, then running a STR from out of state is probably not for you. Or at least it is not going to be worth your time.

[Aaron Bihl]

@Katie Fiola Jones  if buying the property I would want to make sure that it would also make sense as a long term rental,  I would also be sure to look into the regulations for the city its in.  I know in my city permits are required for STRs and they are not transferable and many of the units that have been grandfathered in wouldn't meet the requirements on the new ordinance.  Just something to think about.

[Katie Fiola Jones]

@Eric P.

Thanks for your feedback. It is appreciated! 

We do have one rental property out of state right now - a duplex. But it isn't an Airbnb. 

It makes me wonder why they are selling the airbnb so quickly after renovating it and getting it rented. 

[Katie Fiola Jones]

@Aaron Bihl

I actually found out that the Airbnb side doesn't have a full kitchen. I think we're going to let this property pass because it doesn't have great long term potential. 

[Account Closed]

@Katie Fiola Jones

Starting Airbnb Business is one of the best ways to make money in real estate. I think you should give it a shot. But make sure you do some heavy market research and due diligence before you commit to a property or sub market.

[Katie Fiola Jones]

@Account Closed

Thanks Jason. Do you have any OOS Airbnbs? 

[Nate Fanara]

Originally posted by @Paul Sandhu:

If you have to ask a lot of questions, then running a STR from out of state is probably not for you. Or at least it is not going to be worth your time.

 Everyone starts from somewhere.

[Paul Sandhu]

@Nate Fanara Sometimes it's better to takes small steps when venturing into something new, as opposed to taking a giant leap.  It's easy to take a step back.  It's not easy to take a giant leap back.