Rules of Thumb for Air BnB

[Micah Watson]

I’ve been analyzing deals for a couple years now and have both a brrrr and a flip under my belt. I’m very familiar with the 70% rule, 1% rule, 50% rule, etc etc for rentals.

Are there any rules of thumb for analyzing an Air BnB? I’m interested in getting into the game but not sure where to start with analyzing how expenses, vacancy, etc

[Dave Spooner]

@Micah Watson I've considered it with a few and have gotten close, but haven't made the leap yet. There is a pretty sizable upfront cost and I prefer the low maintenance of a long term renter. I speak with a lot of other landlords pretty regularly, though, and generally hear pretty positive things.

A simple search on Airbnb can help you get an idea of competition and pricing. I'd say there are primarily two things I've heard that drive demand: tourism and corporate job market. If you feel like you check one or both of those boxes, you're probably in pretty good shape.