AirBnb Rental in Philly

[Matthew Carfaro]

Hi All,

I am a new real estate investor in the Philadelphia area and I was wondering if anyone is doing AirBnb Rentals. I have looked into the market and originally was going to house hack a duplex with a long term tenant in the other unit but I have been looking into the viability of AirBnb. If you are currently using this strategy I would love to talk. I would like to know what areas you are renting? What zoning/legal problems oyu have run into? What are your occupancys like? Thanks for the help BP community!

[Ryan McLaughlin]

Hey Matthew, I've done some Airbnb here in Philly. Airbnb comes with higher margins than a traditional tenant but with MUCH more management and stress. I managed a great 2/2 in Brewerytown and dropped it right before Covid. Juice wasn't worth the squeeze. I also built a short term rental unit into the basement of my home in Manayunk. That has proven to be the smartest thing I've ever done. 

Even here though, I have switched away from an Airbnb model in favor of longer term rentals and I'm currently in the process of seeking a variance to make it a legal duplex. I have a strategy that will make my primary a cash flow monster when I move out but that's after lots of experimentation. Airbnb is enticing and you're on the right track but I wouldn't count on it as a long term model. It's flashy in the beginning and quickly loses it's luster. My two cents. Would love to hop on a call with you sometime if you'd like to discuss more in depth.