AirDeed
Short Term Rentals and Airbnbs For Sale
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.
Convert House Into 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
- 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 then 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.
