BEST Airbnb Investing Locations 2021

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What's up guys, it's James here. And in today's video, we're going to be talking about the best Airbnb locations to invest in right now in 2021.

So if you are looking to invest in a short term rental, if you've been thinking about actually buying properties for short term rental, then I'd highly recommend you click the link down in the description below. To schedule a quick call with me, I would love to talk with you more about it. Because my business partner Riley and I are going to be working with a very small group of people over the next six months here, helping them to invest in their next profitable short term rental property. And we're going to be showing them exactly what we've done to be able to find a property that we got that generate over a 280% return on investment in year one, and is going to cashflow about $40,000 per year.

So if you want to learn how we did that, and you want us to help you to start investing in your own short term rental properties, then I highly recommend that you schedule a quick call and the link in the description down below. And I'd love to talk with you more about it. Because like I mentioned, Riley and I are gonna be working with a really small group of people over the next six months.

But you'll want to make sure that you click that link quickly and get a call scheduled as soon as possible, because we are going to be closing it down pretty soon here because we're limiting the size of the group that we're working with, because we are working with those people very closely in a small intimate setting. So if that's something you're interested in, then just click the link in the description down below. And I would love to talk to you more about it.

Now all that being said, let's start talking about the best Airbnb locations to invest in in 2021. Because I've got some really great insights to share with you. Now, I was speaking with someone pretty recently who was asking me, you know, what are the pros and cons of the of the area that you're investing in where I've chosen to invest. Now, for any of you who aren't familiar yet who haven't seen some of the other videos, the area that I am most actively investing in right now is actually an area that's in a cottage country a couple hours outside of Toronto, which is a major city here in Canada.

And we're actually working with investing partners as well in something that we call BMB capital, where we're actually working with investors to co own co invest in properties for short term rental, and I'm looking at other markets around the world as well. And so what I look for when I look for a market is a few things. So starting off with I like to find a place that is going to be Airbnb friendly from a regulatory and a taxation perspective. So on the regulatory side, I like to find areas that have established regulations around short term rentals. That's criteria number one.

So any area that doesn't yet have a stance on short term rentals, I see that as a bit of a red flag a bit of a wildcard, because I don't want to be on the losing end of it if that si decides when they do want to have an opinion about short term rentals that they're anti short term rental. So I always like to look for areas that already have established short term rental regulations. So I can rest assure that those are less likely to change in the future.

The other thing I really like to look forward to again, just lock in my position of being in a property that is going to be favorable regulation wise to Airbnb is for a long time is investing in markets that are reliant or dependent, at least to a certain extent on the short term rental industry. So I like to give the example of downtown Toronto as being a place that I don't really think is a great opportunity from a regulation standpoint, just because the industry, downtown Toronto is not reliant on short term rentals, really at all. There's a bunch of hotel lobby groups that would rather see people gone from the short term rental world, then see them stay here.

And so there's so much else going on in Toronto that there's just no real need in the overall economy here for short term rentals. Whereas if I invest in a property in an area, like coral lakes, that's just outside of Toronto in cottage country. Well, if you look at what happens in that area, the population almost quadrupled in the summertime. All the small businesses in that more rural location depend on the tourism industry depend on people coming and staying in that area booking Vacation Rentals in order for those businesses to survive, survive and thrive.

And so for me, that's a really safe bet from a regulation standpoint, because if they were to ban short term rentals in that area, then their whole local economy would really, really suffer. So it's very unlikely that would happen. Then I also like to look at where I'm going to be taxed most advantageous. Lee, this is especially applicable to anyone in the in the United States, you want to make sure that from state to state, there are going to be different differences and how you're going to be taxed on your income, you're going to have different areas that are going to charge a lodging tax or short term rental tax, other areas that charge different rates of tax for your income at the state level.

And so you always want to be mindful of that because at the end of the day, it's not about how much money you make. It's about how much money you keep and your taxes are really going to play into lowering or increasing that number that you're actually going to keep at the end of the day. Now once that stuff is set aside now once we figured out, okay, this is going to be an area that is friendly from a regulation standpoint, that it is also friendly from a taxation standpoint. Now we want to start really crunching some numbers and looking at opportunities.

Now, for me, I really like to be in a place that's also insulated in the types of guests it's attracting, we've seen recently that international travel can be pretty flimsy, it's not say that always is, it's just that there's another layer of risk if you're looking to accommodate people traveling internationally, because as we've seen, international travel can really grind to a halt in different situations. So I personally like to focus on areas that attract a lot of local and domestic visitors. That's why again, cottage country is a really great option for me.

Or if you're in different parts of the world, mountain cabins tend to be about the same, you tend to get a lot a lot of local traffic, and sometimes a good mix of international as well, which can be nice beach houses, I mean, these sort of vacation homes, where you can think of a family going to kind of get away from the city for a bit, those tend to be really good options for domestic travel, I also want to look for properties that are larger, that are good for larger groups. So that kind of precludes me from a lot of different markets.

Because, you know, in downtown Toronto, it's just not really that desirable, relative to the cost of the home, you know, the cost of a three bedroom home goes up substantially from you know, three bedroom, four bedroom, what have you. And there is more demand for those properties, but not equal to the amount of additional that you're paying and the price.

Whereas if we go out into somewhere more rural, which is where I personally prefer to invest, then you're getting a real discrepancy in the prices, that you're actually able to command on the revenue side of things, how much you'll be able to earn, but you're not seeing a huge discrepancy in price when you actually go to purchase the property. So set in really simple terms, I'm not going to pay a huge premium, when I jump from a three bedroom property to a four bedroom property, the purchase price, what I'll pay for that property is not very far different.

But how much can I actually make on Airbnb with a four bedroom property versus a three bedroom property quite a bit more money, because it attracts larger groups, I can accommodate more people so I can access more of the demand and increase my rates. So I like to focus on areas that support really great numbers, that the numbers just make a ton of sense on those larger properties, because that's where I found the best ROI to always be. Now as far as specific locations to invest in, I recommend looking somewhere relatively local to you just because you'll tend to know that area well.

Or if it's somewhere that you vacation too often, there's really no advantage to being super close, I would actually argue there are some disadvantages to being very close to your investment properties, that tends to lead people to take on a more active engaged role and to let the investment property suck up a lot more of their time they need to so actually advocate for investing in a property where you can't it's very inconvenient for you to actually get there, because it's gonna really force you to put the systems in place to turn this investment passive the way that it really should be. So investing in somewhere that you are familiar with, though, is a really, really great strategy.

So if there's an area that you vacation to a lot, or an area that is relatively local, maybe a couple hours away that you really like and you're familiar with, you know, the area, you know, the types of people booking there, that can be a really great option as well. Personally, throughout Canada, I'm looking mostly at cottage country outside Toronto, that's really our bread and butter. Right now, there's some other interesting markets in Canada, but I like to stay focused because again, also once you build up your Power Team in that area, your cleaning team, your renovation experts, your maintenance people, you really want to leverage them on multiple properties, as opposed to buying a whole bunch of properties in different areas and having to build that power team in all these different areas.

Now in the United States, there's a really interesting opportunities down there. I'm looking at areas like Texas, certain parts of Texas like Galveston can be really interesting. From a tax perspective, it's really really strong, you're not paying nearly as much tax as you are in other states. Also, I really like the market in Gatlinburg, Tennessee. If you're been looking into Airbnb investing, then you've probably seen it come up quite a bit. It is getting pretty, pretty pricey now, but getting into it a couple years ago would have been fantastic. And if you can find the right deal, which is a big part of investing in any market, then there are still some really good deals to be found in Gatlinburg as well.

So there's all kinds of interesting markets, but just at the mention of Galveston and Gatlinburg, you're probably thinking, no, those aren't the Top of Mind cities that you would have expected me to say, you know, I'm not mentioning places like New York City, la Miami, that big hot cities that a lot of people think are gonna attract a lot of that tourism. The reason for this is that in those cities, the rates for buying a property tend to be astronomically high. The real opportunity in investing in short term rentals comes from finding that arbitrage that discrepancy between the home price and what you can get on Airbnb.

There's Plenty of properties in these smaller areas that I've mentioned, they can bring in at 100 120, even $150,000 a year in bookings, which is crazy when you consider that you can purchase homes in some of these areas for as little as half a million dollars, sometimes even less, right. And so if you can buy a property that is going to bring in, you know, a fifth or a quarter of what it's worth every year in gross bookings, that's going to be a knock out of the park when that's where you're going to get huge cash flow numbers, huge return on investment.

And that's where with even just one or two properties, you can be completely independent financially, you can quit your job on just one or two properties and start doing this full time. So again, if you want to learn exactly how to do that, and you want to work with myself and my business partner Riley to do that, then just click the link down below in the description. And you can check out you can set up a quick call with me, I'd love to chat more and see how we can help you to become financially independent owning properties and investing in properties through Airbnb.

So again, just check that out. If you like this video, if you got value from it, then just click that like button, give this video a thumbs up it really helps me out tremendously with the channel are growing very quickly right now. So if you want to jump on and hit that subscribe button, we crossed over 1000 subscribers recently and I would love to have you as part of our channel as part of our family here. I'm going to be posting two new videos every single week here talking about all things Airbnb and short term rentals. So if you want to stay up to date with that, then be sure to click that subscribe button. Make sure to give this video thumbs up if you liked it and I'll see you next time.