BEST Airbnb Investing Market 2021

Start Growing your
BNB Business Today!

Get inside access to our professional courses, hosting community, and much more!

What's up guys is James here and in today's video, I'm going to be talking to you about the best type of market to invest in for Airbnb investing right now in 2021. Now, you may have seen some similar videos, I just posted some new videos, if you haven't checked those out, then make sure you go back and check those out. I've talked about the best type of location to invest in the dust type of property to invest in 2021. But I also want to talk about the best type of market, so not this specific location. But the best type of market.

And what I broke it down into are three different types of markets that you can invest in three different types of, of investments with short term rental, I've broken down into three different categories. And I want to talk to you about each one of those three, and which one I prefer what my favorite one is for my investing right now and which one I am investing in right now. So make sure you stick around for this video that's we're gonna be talking about before I dive into it, I just want to remind you, there is a link in the comments or in the description down below.

That's going to help you to schedule a call with me. So you can click the link, you can get to my schedule page, you can select a time that works for you. For us to jump on a quick 15 minute chat, it will be you and I menu face to face mano a mano or a woman Oh, we are going to talk about investing in short term rental properties. So I'm actually gonna be working directly my business partner and I are working directly with a small small group of about 10 people coming up here, showing them exactly the step by step process for exactly how to start investing profitably, hyper profitably into short term rental properties.

We're gonna show everyone exactly what we've done all the different steps of the entire process from start to finish, so that we can help you to get your first or your next short term rental investment property in the next six months here. So if that's you, if that's something you're interested in, then click the link in the description down below and schedule a quick 15 minute chat with me, I'd love to hear more about what you're up to what you're looking to accomplish and see how we might be able to help. So with all that out of the way, let's start talking about the three short term rental market types that are out there and what my favorite one is, personally, for investing in.

Now, market type number one is the business travel market. This is where you're gonna be buying properties that cater towards business travelers. So there's namely going to be buying in urban centers where there's a huge amount of business going on, there's a whole bunch of office buildings, typically, and maybe a corporate headquarter or some major company, and you're going to be buying properties that cater to those business travelers that are coming into the area specifically for business reasons. So normally, this is going to be a studio or one bedroom property.

Normally, it's going to be a condo, because a lot of time in these areas, you're not finding a lot of single family homes, not always but that's kind of more typical is for to be a condo, and you're going to be buying a property that really the focus is just a location, location, location, that tends to be the number one factor for these business travelers, there are other things that are important, but location is super, super important because they want to be close to their office. And that's really the main priority.

Now this can be a good market to invest in. But I don't love it personally, just because condos aren't really my thing I like to own land, I like to be able to do some burning on the property, do some renovation on it. And I personally find the return on investment numbers that I'm looking at, they always tend to be better on larger properties, which just don't really lend themselves that well to business travel. So business travel can be good because highly passive and you're buying a condo usually. So it's a lot less maintenance you need to deal with the guests are typically very low maintenance, you tend to get a lot of repeat bookings for these types of guests.

So they're not all bad, but they're just not my absolute favorite, what I invest in one sure if the numbers made sense, but they often don't make as much sense to me as other market types. Now, the second market type is a tourist vacation rental, a tourist property. So this is where we're going to be looking at properties that cater specifically towards tourists and not necessarily business people, but people that are coming in for a vacation. And generally internationally is what I'm talking about. So that's generally going to be someone from at the very least at a state but likely out of the country who's coming in to stay.

And this is again, oftentimes going to be in a major urban center or a big tourist destination. Think about la they grew up Miami, think about New York, areas like that, that attract Oh of global tourism. And again, these properties can range from the one bedroom condo that caters towards couples all the way up to a three or four bedroom house in one of these major urban centers that caters to the whole family that's traveling in. Now these can be really good because you do get the advantage of buying in a densely populated urban area which a lot of people like because appreciation can tend to be good.

Now I personally don't really advise people to invest based on appreciation, appreciation in my experience should be viewed as the cherry on top because if you invest for appreciation, then you risk running into issues. If we Have another 2008. But that is one big advantage that you can buy in more populous areas. So that can be nice. And a lot of people do prefer that even if I don't personally. The other nice thing is that you can also expand out and buy these larger properties, which generally will have a higher ROI, because it can still cater really well to the tourist market.

There's a whole bunch of other advantages, those are the main ones in my experience. This is the tourism market. Now, the downside of the tourism market is one that I probably don't need to explain it to many people right now, for obvious reasons, a tourism market can be a little bit more risky if we have a repeat of 2020. So there's a something to consider there. If you have a lot of international travel coming in, then there are things that can happen that can block your international travelers from coming in. Now, the nice thing about investing in a tourism driven market is it typically you're also then investing in an area where the long term rents are higher.

So that's another nice thing about investing in a major urban center is that those long term rental rates tend to be higher. So you can usually use that as a decent backup plan for the property more effectively than you can with a more rural property. The other thing is that you do generally have the flexibility to pivot towards business travelers, things like that. So there is a bit of flexibility and who you can cater that property towards you tend to protect yourself against a lot of that downside with with a property that is the right property that you bought for the right price.

Now, the third type of vacation rental market or short term rental market, if you will, is vacation homes. Now this is my personal favorite type of property to invest in have a market to invest in is when you're catering to people on vacation. So a little bit different than tourism. Now we look at tourism, I'm talking about going people, you know people coming in from abroad traveling to major urban destinations versus that vacation rental market or something like Florida, where people are going and vacationing every year for a couple weeks, they're not out there exploring a new city getting to know a new country, they're just going down there for a regular family vacation.

Now, that means that typically you're not in a major urban center, typically you are in somewhere more remote, more rural, I should say is probably a better way to describe it. Oftentimes, you're catering more to domestic travelers, you're usually catering to people from the same areas, you're not getting people from all different parts of the world coming in, you know, if you have a property in Florida, you're probably getting mostly people from New York and from Ontario, from Canada coming down the same thing every year, you tend to get a lot of repeat bookings from those types of properties, which is really nice.

If you have tourists coming in from abroad, they're generally not making an annual trip out of that. So you're not going to get as many repeat bookings, as you would with a vacation rental. And that's one big advantage. The other big advantage is that because these more readily located properties are rural, you tend to be able to get them for better prices, you're not paying that premium to be in an urban center. Now the other advantage there is that you can then make a much, much better ROI on some properties by buying the right property that cost very little back and bring in a tremendous amount on short term rental as an Airbnb.

Now, the downside of that market is that because it's more rural, you typically have less of a backup plan to follow on to with the long term rental market, because long term rentals tend to be much, much lower price, and in much less demand in these types of markets. So you got to make sure that you have different backup plans in place to protect yourself in the worst case scenario. Personally, no matter what type of market I'm investing in, I always make sure that our worst case scenario is breaking even each month on the cash flow for the property, we never want to be in a position where we're risking losing money on cash flow, because that could lead us to having to sell the property at the wrong time.

If the property costs money to own, then it could force you to give you no other option, especially if you're growing a really large portfolio, you could have to sell that property when the market is not great for selling the property. And then you could lose money selling the property. That's where a lot of people got into trouble back in 2008. Whereas if you make sure that even in the worst case, conceivable scenario, you're still going to be at the very least breaking even on your cash flow, you know that you can hold that property indefinitely. It's not really causing a financial strain for you.

So you're going to hold it and weather the storm and sell only when and if the market is hot. So that's where you're really going to win long term real estate is by being able to control when you sell and hold properties long term. Because we know that over the lifespan of real estate North America, the market has been going up. Now I don't have a crystal ball to say that that's always going to happen in the future. But if we look at history, it's indicated that hey, long term real estate is gonna go up even if it does take short term dips. So we want to make sure that we can weather those storms and hold long term.

So that goes for any different market. My personal favorite right now is these big rental markets just because the opportunity I'm seeing is really, really right there. We're getting really great deals on great properties and making a killing on the ROI side of things. And they cashflow incredibly, incredibly well. But you do need to make sure that you're buying properties with the right backup plan in mind. That's the main thing that I like to look at with these types of properties. Because a typical long term rental strategy often doesn't make a great backup plants, you have to have other tools in your tool bag. So that's my thoughts. That's my opinion. That is my expertise.

So if you like it, give me a like button hit that like button, give me a thumbs up. If you have thoughts on it, pop it in the comment section down below. I'd love to hear from you what your favorite has been? What's your bread and butter? What do you love to invest in? What would you want to invest in? Let me know in the comment section down below. As I mentioned the beginning of the video, if you're interested in investing in Airbnb, if you want to work with me to invest in short term rental properties, you want us to hold your hand and show you the ropes of exactly how to find the right deals, analyze and figure out exactly what your ROI is going to be and go and pull the trigger and execute on the best possible deals out there on the market right now.

Even when everything is going crazy, we're still finding deals. So if you want to learn how to do all that right through to how to renovate the property and get the property up and running and optimize performance on Airbnb, then just click the link in the description below. Schedule A quick 15 minute call with me, I'd love to discuss how we can help and work together with you to make that happen. We're working with people helping them to bring on properties, own properties that are going to be cash flowing 3040 $50,000 a year.

So it really doesn't take much at all to completely replace your income. If that's something you want to do, then just click the link down below and schedule a call with me. I'd love to talk to you more and see how we can make this work for us to work together make that possible for you. So again, schedule a call on the link down below. And last but not least, if you are not yet subscribed, then do it. Just do it. Just do it. Just take a second hit that subscribe button, subscribe to the channel because we post two new videos every single week, every week for almost a year now probably over a year now post two new videos every week, delivering you guys as much value as I possibly can.

That's my goal with this channel is to keep on delivering value and talking about all things Airbnb, short term rental, everything you guys want to know that can help you guys on your financial journey. So just be sure to hit that subscribe button so you stay up to date with the channel and stay up to date with all the content we put out. That's all for today folks, I will see you next