The Best Place to Buy an Airbnb in 2022

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What's up guys, it's James here. And in today's video, I'm going to talk about the best places to buy a short term rental property or an Airbnb, a vacation, rental, whatever you want to call it in 2022, I did another one of these videos last year, and people seem to really enjoy it. So I'm going to do a video again this year with my thoughts on the absolute best markets to invest in the best area to invest in one buying properties. And so let's just jump right into it. Before we get started, I just want to remind you, there is a link in the description down below for our free training on exactly how to invest successfully in short term rental property. So if you're interested in buying Airbnb is buying vacation homes, and replacing your income earning massive cash flow, and building long term wealth through vacation rental investing, I highly recommend it. And I highly recommend you check out the free training and the link in the description down below. It's also gonna give you a free tool to analyze properties and help you get started. So just check it out. Again, link in the description down below. Now let's just jump right into it. And let's talk about the best markets to invest in. As far as I can see, I'm going to talk about specifically Canada in the US. But a lot of these principles can be leveraged in the exact same way in just other markets outside of Canada, the US, there are a lot of markets internationally that look great as well, I specifically am just gonna be focusing for this video on Canada, the US. But again, I also take these kind of strategies and apply them elsewhere as well. short term rental investing is certainly by no means limited to North America. So the trend I'm seeing right now in the market is that we're starting to see a lot of travel continuing to go towards properties that are outside of major urban centers. So we're still not seeing a lot of international travel, this will vary a little bit depending on where you are. But for the most part, international travel is a lot more limited than it was pre pandemic, pre everything that's going on in the world right now. So what you're going to be relying on is domestic travel. Now, domestic travel, that is kind of a flight away is starting to pick back up again. So you know, we're seeing people flying from the East Coast to the West Coast a lot more often now than we were last year. So that's a good sign. And so a lot of nature destinations, in general, people are looking to get away to places that aren't necessarily an urban center. Because again, with the restrictions on business business being closed, it really takes away a lot from urban centers, you got to think a lot of people when they do visit urban centers, they're going for shopping, they're going for food, they're going for nightlife, and all those things are pretty limited in a lot of different areas. If you happen to be in an area that is without restriction, those areas tend to be doing a lot better. So think about, for example, Austin, Texas, or Florida, there's a lot of tourism going that way right now. So those markets are very good look for areas that don't have as many restrictions. And ideally have some other draws from some other attractions. So I mentioned Austin, Texas, actually a place that I visited just last year and paid an arm and a leg to get an Airbnb there, and was checking out the real estate market while I was there, it's a very strong market, one of the really big draws there, right now specifically is the lack of limitations around what you can do. There's a lot more variety of things you can do to entertain yourself in Austin compared to a lot of other places in North America. And one of the things I really like about Austin as a market as well is that there's constantly something going on, there's all kinds of events that happen. So long term. I'm quite bullish on Austin. But for the short term, it's not one of the best markets that I've found, just because there are markets that do really, really crazy numbers. And those ones tend to be the areas that are outside of a major urban center. And so when you're thinking major urban center, I think about for example, a Toronto or a Montreal or Vancouver, if you're in Canada, or think about a New York City is a big one, obviously, think about LA think about a lot of big cities. I mean, there's a ton of them all throughout the states, it doesn't have to be just a you know, an LA a San Diego, San Francisco and New York, whatever it might be in Miami, there's tons of large city centers throughout the US because the population is so much larger. And so because of that there are a lot of people that are in that urban center that want to get out and go and you know, go and travel, right, but there's just not as many international travel options. So that's why we're seeing that domestic travel outside of those areas is really strong. Again, this is even more so the case when you're dealing with areas that are more heavily restricted. So outside of Toronto or outside of New York, you're seeing a lot more demand for areas that are you know, sort of two to three hour drive away. Because the more restrictive the city is, then the better that the peripheral markets tend to do, because people have more reason to want to get out of that urban center and just explore, you know, just spread their legs.
I myself, you know, being based in Toronto for a chunk of the year. I don't really enjoy it when it's really just a suburb with great takeout as far as everything is concerned with the pandemic and all things being locked down. So having an opportunity to get out of there is really valuable. And that's not just me, that's the case with a lot of people. So rule of thumb, I like to look for large urban centers that have restrictions that Are that have a good kind of draw to something within two to three hours away. So for example, the area that I'm investing in right now is the kind of cottage country area outside of toronto, toronto is heavily restricted right now. And the vacation rental market that's about two to three hours away. And cottage country is really appealing for me, to me for a couple of reasons. Number one, was it right now, with everything going on, there's just a lot of draw to that area, it's really challenging and a bit of a pain for Canadians to travel internationally, even just jumping on a plane, a lot of people just are kind of hesitant to do so. So being able to drive a couple hours and get away to a bit of an escape a bit of a staycation that's really appealing. So our properties are doing really, really well in those areas right now. But obviously, I'm going to be investing these properties. For more long term, I'm looking at every investment I make as a 10 year play. And so I want to make sure that the in the market up there is going to be sustained over a long period of time. And so what I liked about those areas is a lot of those areas were already experiencing growth. So the cottage country area outside of Toronto was still experiencing steady year over year growth every single year, even leading up to the pandemic. And now after it's just been accelerated even more. And the reason for that is because the population is growing quite a bit in Toronto. So the more people that there are in Toronto, the more people that are going wanted to go outside. The other thing is urban sprawl is just kind of going further and further. So the real estate value has a lot of potential to increase dramatically over the years. So I think there's a lot of potential there. But that's certainly not the main reason I'm investing there. So look for areas and again, you can use air DNA drawn analysis on specific areas. But look for areas that are within a couple areas, a couple hours story drive of a major urban center, the more locked down that that major urban center is right now, the better those areas will tend to do those periphery areas will tend to do in the short term in the long term, obviously, that's not going to have as big of an impact. So you want to make sure that you're looking for areas that have steady year on year growth even before the whole pandemic. So look for 2018 and 2019. And see make sure that there is still a good year on your growth. And then obviously, if the urban center is growing in population every year, that tends to be a good sign. Because it's going to mean that more people are going there more people are going to be wanting to kind of go and do their staycations in those areas. So that's my take on the areas that I find most interesting that you can also check out sites like err DNA, there's a link down the description below to check us our extension. It's a Google Chrome extension that helps you gather data from air DNA more effectively more easily. So I'd highly recommend checking that out as well. All kinds of different markets. The reality is there's a ton of markets right now that are going really well. short term rental overall, the industry is growing massively right now. So there are a an abundance of areas that work really, really well and they're seeing really great return numbers, these just a few that I personally have been looking into the most, the most over the last kind of year here and the ones that I'm the most bullish on right now. But it's not to say that other different markets are not good for investing. These are just my personal choices. So I hope this has been valuable to you. Again, if you want to learn the ins and outs of every single step of the process for investing in short term rental properties, then I highly recommend you check out the link in the description down below. It's a free training again, completely free all you need to do is just put in your name and your email sign up for the training will give it to you completely free. We're also going to give you a copy of our property analysis spreadsheet that's going to be completely free as well. It's gonna be sent right to your inbox so you can use it for yourself to analyze deals in whatever area you want to look into. All that said, I hope you liked this video. If you did, give it a thumbs up make sure you subscribe and I'll see you in the next video.