Buying A House For Airbnb or Purchase Existing STR?

This is one of the first questions that new short-term rental investors ask themselves. A lot of younger investors are interested in buying a house for Airbnb instead of looking for existing rental homes already on the sharing websites. However, this isn’t always the best option and we will go through the pros and cons of both.

Turning A Home Into An Airbnb

Pros

Blank canvas to build your STR vision
Cheaper than established Airbnb or VRBO
More property options

Cons

Harder to Finance
No potential bookings
May need to lower prices in the beginning to steal market share
Need to find third party contractors for servicing rental

Buy Established Short-Term Rental Property

Pros

The purchase comes furnished and decorated
Third-Party Contractors already built-in
Easier to get financing

Cons

More Expensive
May not be your desired property or area

Both roads to becoming a short-term rental investor can be profitable but the path is definitely bumpier when you are starting fresh. However, this is like any new business starting fresh, and many have succeeded without buying an already established income-producing investment STR. In fact, many investors have failed when buying an established Airbnb and not properly managing it only to see their investment perform poorly. If you do your market research and properly manage your property you can succeed when buying a house for Airbnb. 

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