Best markets to invest in Airbnb

[David Rutledge]

Hi everyone,

I have a number of long term rentals and I am looking to purchase another 3 properties that I want to use as STR on airbnb. I have converted a few of my long terms into STR and have been really happy with the results.

I am looking at a number of different markets to make this model work and I was wondering if I could get some insight from anyone who has some knowledge or experience doing STR in these areas.

The areas I am looking at are:

Davenport, FL, Tampa, FL, Memphis, TN, Chattanooga, TN, Gaitlinburg area, TN,due to the affordable prices and year round visitors

Indianapolis, IN, Kansas City, MO, Detroit, MI for the very affordable prices but I am unsure how these markets would perform year round.

I am also looking at college towns Columbus, OH, Ann Arbor, MI, Waco, TX to take advantage of year round attraction of the universities in these markets.

I have spent hours looking at different reports and opinions on these markets from Airdna and other experts but I would love to hear from people who are actually investing in these areas and have an intimate knowledge of what is going on from the perspective of an investor.

I live in CA and will be buying out of state. The main things I am concerned about are:

1) the affordability of the market (I would like to buy multi family properties for between 100K - 250K) 

2)Seasonality of the market (I would prefer there not be a huge difference in occupancy between the highest and lowest months)

3) regulations, I want to stay away from markets that have very strict regulations on STR like Nashville, Orlando etc..

Any type of insight hat I could get would be very much appreciated.

Thanks everyone.

David

[Conner Bland]

@David Rutledge Indianapolis STR's perform decently year round in the Downtown, Broad Ripple, Fountain Square and Mass Ave areas. There's a hotel shortage right now in Indy which is helpful for STR's with events like Big Ten Championship, NCAA Tournaments, Convention Season and the Indianapolis 500, but there is a huge push for building more hotel accommodations downtown right now, so STR's in Indy might not be a great long-term solution. See link:

https://www.visitindy.com/indianapolis-planner-new-developments

One market to take a peek at if you haven't yet is Asheville, NC. HUGE NOTE - you HAVE to buy outside the city limits. There's a full ban on non-owner occupied STR permits inside city limits. They are also very limited geographically in how much hotel building they can do because of limited space and mountainous terrain, so both of these things keep the accomodation supply from massive year-over-year increases that drive down your prices like we're seeing in Tennessee and Texas. There's also rarely a dip in tourism in Asheville, so demand stays very strong no matter the economic environment. You can purchase small 3/1 bungalows right outside the city limits for $250k-$300k and I know first hand that operators can generate $5,000 - $7,500 per month in gross rental incomes.

Might be worth some analyzing!

Best