Best place to Buy an Investment Property??

Elena3238
Level 2
Copenhagen, Denmark

Best place to Buy an Investment Property??

Hi, 

 

I have been looking to buy an investment property which I want to turn into an AirBnB here in the US…but I am new to the market and I am not sure where to narrow down my search. 

I have been looking at places like Memphis, Oklahoma City and Milwaukee but as any US towns there are good and bad neighborhoods. 

To hosts that have properties in these cities, what are the good neighborhoods to look into and how often are you booked (setting aside pandemic conditions)? Thanks a lot 🙏🏼

9 Replies 9

@Elena3238   I'm not sure I understand your business concept here - who is going to be hosting your Airbnb?

I will have employees for this. All I want is to know if Memphis, Oklahoma City and Milwaukee are good cities to invest in and what are the best neighborhoods in order to be able to maximize profit. 😊

@Elena3238  have you been to all 3 cities? What did you think?

 

As a host, people are paying for you to know the area well enough to make recommendations to them. If you are paying someone else to do this and just hoping to profit, I would probably invest in something else. There is so much risk involved in owning a property internationally, let alone one which is somewhere you are unfamiliar with.

 

Memphis, Oklahoma City and Milwaukee are about as different as you can get from one another. Do you know the history of any of the cities? Major industries? Weather? Are you familiar with local issues and politics? Investing in a city in the US for ABB will require you to be very well versed in what the politicians and residents think about allowing short term rental. Its not merely a question of "is this neighborhood nice?" If it is, and ABB is allowed you can bet there will be competition. There may be a need for licenses, getting to know neighbors (some places require neighbors to sign off to allow you to operate, or require you to be on site.) You need to know about seasonal shifts in tourism, local attractions, taxes, laws, insurance, home owners associations, flood planes, etc.

 

I don't mean to be discouraging, but this line of questioning reveals a very uninformed outlook. You need to do some boots on the ground research and not just ask a bunch of other hosts. Its too big a financial commitment to trust to the lot of us.

Laura2592
Level 10
Frederick, MD

@Elena3238 it sounds like you are on the very beginning of your journey. I am asked at least once a week by friends about buying a place for an ABB. This is a thread I did some time ago. Hopefully it helps.

 

https://community.withairbnb.com/t5/Hosting/Buying-a-remote-property-to-use-as-STR-things-to-be-awar...

@Laura2592   That's an excellent resource.

@Anonymous  thanks! I just cut and paste it now.  I ger tired of saying the same thing  🙂

Dimitar27
Level 10
Sofia, Bulgaria

You can start with something relatively easy-become a co-host in your area.

Two listings can have a dramatically different potential even when they are in a same building.

I mean...0 vs 30 reservations per month...

Inna22
Level 10
Chicago, IL

@Elena3238 there is a website called airDNA. I think you can find answers to a lot of your questions there

Thank you so much! 😊