How to Invest in an Airbnb From Out of State

[{"selector":"#anim-a0a53ed7-c2a8-4b68-8471-6fcf3dffa04f","keyframes":{"opacity":[0,1]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-17f06d52-cb85-4442-a4fd-1f4b64c7a29c","keyframes":{"transform":["translate3d(0px, -99.3561%, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-419a98bf-4b77-42b4-a749-04bffbb33f9c","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7afdfa1b-1026-4fc8-bc32-9a070b1400e2","keyframes":{"transform":["translate3d(0px, 285.49704%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

There are plenty of reasons to think about investing in a short-term rental property out of state.

[{"selector":"#anim-59f9b71d-6b7b-4e7f-93b0-f04bef4db8d7","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-f403514c-97bc-482a-bdfd-29ac55c0a083","keyframes":{"transform":["rotate(-41deg) translate3d(0px, -68.33437%, 0) rotate(41deg)","rotate(-41deg) translate3d(0px, 0px, 0) rotate(41deg)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-817c523c-b460-4f22-a5e9-a3febc70aba0","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Learn more

You may have just gone on a vacation and decided the people who own the place you are renting were making a killing.

Local Vs. Out of State

[{"selector":"#anim-59c8c2be-075a-48b5-8427-1a30cc0d3960","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-e0b2afd6-068d-47d7-b7ad-18cafb6de486","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d1192df9-32de-4e2d-b71e-c389869f4ed5","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8c0a9f15-614b-41b1-b1b3-f70f1f597457","keyframes":{"transform":["translate3d(-115.87301%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-a4a35864-407b-4571-a150-4d78afa4132f","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-25dbb46b-ab6f-4c11-8ebc-d98552959e2c","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-0dde3f00-f7de-4d96-ba2b-72f18dc9a6a5","keyframes":{"transform":["translate3d(99.72603%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] A much better reason is for the economics of it. If you are in an area where housing is in high demand and prices are in high demand, but the short-term rental outlook is average, it will be hard to make money there. When investing out of state, you get to cherry-pick markets that fit your criteria. Learn more

How to Select a Market

[{"selector":"#anim-3f49c36c-f9b6-4cea-9898-f71692e3de60","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-62a39b7a-32d0-4846-ad4b-dfad5d44169a","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c5d42410-b993-4b64-92f4-9c107cea23ae","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-26516383-f9f9-4d89-bbf9-8b160da2e7cd","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-aa249c08-1529-4446-b57c-e50c0a0afc3a","keyframes":{"transform":["translate3d(-116.19048%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-136d0aef-f400-423a-b9ea-c629f64cfbd8","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-87d376af-119f-42fb-b5cd-4d5151ed470c","keyframes":{"transform":["translate3d(-115.50632%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] From a purely financial perspective, you will want to choose a market with strong rental demand, low demand for property, and good prospects for property price and rental demand growth. Learn more

Airbnb Expenses

[{"selector":"#anim-7eebedc6-b18b-4a06-baca-69100d2b9e82","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-519d7b8a-012b-40e7-9300-d95e5b038b20","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-339bc8cc-6678-4bbc-9ae0-26d8590101f2","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-fb8bb7d5-2182-43a6-8670-bb0bd6cf4fb3","keyframes":{"transform":["translate3d(-115.55555%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2e1ccf74-7386-4fa2-8d6e-678ff8f22552","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-df286334-4815-4a67-a444-e7abd117c0df","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-80fd77f4-a08a-4625-aed9-1a6cc5f23e0f","keyframes":{"transform":["translate3d(99.72603%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Here are the main expense categories: - Mortgage - Property Taxes - Utilities - Insurance - Cleaning - Maintenance - Furniture - Linens Learn more

Airbnb Revenue

[{"selector":"#anim-9908c4c8-3a4a-4341-8c43-4b20477ab246","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-d605ece5-897e-42ed-89f0-46550632b33f","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-df5ccdf8-0675-4c08-952b-8919e9b1b22c","keyframes":{"transform":["translate3d(100.00000%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c8a7a506-4a3d-4ef0-b2a5-6a09f6933c1b","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-1310bc5f-f30c-4c67-8ece-cd6fbdbcc24c","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-2cce09a7-9de3-49d7-9753-622131992149","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ee028360-7832-44c2-86b0-c6e4241f365c","keyframes":{"transform":["translate3d(-114.92064%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] There is a rule of thumb that a good Airbnb should make 3x the long-term rental rate. You can find an estimate for the monthly rent on Zillow or Rentometer. Learn more

The Revenue Calculation

[{"selector":"#anim-98c658df-12cc-4220-a7ee-eadd9c3f5689","keyframes":{"opacity":[0,1]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-dc4dc587-537c-4a0e-8df7-743e9e4a4cb1","keyframes":{"transform":["translate3d(-115.18988%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":100,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-716acbd5-b3e0-476a-9537-e53fbb468da2","keyframes":{"opacity":[0,1]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-ef8d6d61-aaa8-40c2-aa81-c3dbffcbdaef","keyframes":{"transform":["translate3d(-115.2381%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-c315ab78-94ab-4cf4-8692-fc1989cf766a","keyframes":{"opacity":[0,1]},"delay":200,"duration":2500,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] [{"selector":"#anim-8448046c-4036-4f2e-8ab8-7189590177ea","keyframes":{"opacity":[0,1]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-7042a5f9-12c2-4223-8e54-f55a9eaaaebd","keyframes":{"transform":["translate3d(99.72603%, 0px, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":2000,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Short term revenue boils down to this equation: Revenue = ADR (Average Daily Rate) X Occupancy Learn more

Swipe up to learn more about How to Invest in an Airbnb From Out of State

[{"selector":"#anim-4867908e-cb3f-43bc-8f60-6a063c086a07","keyframes":{"opacity":[0,1]},"delay":200,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] [{"selector":"#anim-44b93358-8b33-48ee-a3b8-26a3cda423b2","keyframes":{"transform":["translate3d(0px, -130.33593%, 0)","translate3d(0px, 0px, 0)"]},"delay":200,"duration":1500,"easing":"cubic-bezier(0.2, 0.6, 0.0, 1)","fill":"both"}] Learn more

How to Invest in an Airbnb From Out of State

There are plenty of reasons to think about investing in a short-term rental property out of state.

You may have just gone on a vacation and decided the people who own the place you are renting were making a killing.

Local Vs. Out of State

Local Vs. Out of State

How to Select a Market

How to Select a Market

Airbnb Expenses

Airbnb Expenses

Airbnb Revenue

Airbnb Revenue

The Revenue Calculation

The Revenue Calculation

Swipe up to learn more about How to Invest in an Airbnb From Out of State

More Stories

For more posts like this visit thefrugalexpat.com