Airbnb Rental Arbitrage in 2020: Where to Make Money Without Buying Property Dillon DuBois | Februar

Updated: Feb 19


https://www.airdna.co/blog/airbnb-rental-arbitrage-in-2020


This is the first page of the whole article at the website identified above.


  1. Since the 2009 recession, homeownership in the United States has, for many, felt more like a pipe dream than any feasible part of the American dream. A 2019 report from ATTOM Data Solutions has confirmed that this sentiment is no longer a hunch — it’s written in the data. Becoming a homeowner is now more difficult than it has ever been, making rental arbitrage now extremely appealing.Here’s where we stand: throughout the country, home prices are outpacing wages in 80% of the 755 counties analyzed. Renting a home is now more affordable than buying a home in the nation’s 18 most populous counties and 37 of 40 counties with at least 1 million people (93%).With wages and home values diverging in different directions, the investment real estate market is witnessing a significant sea change. Buying a home for the purpose of flipping or renting isn’t nearly as achievable as it once was.When it comes to short-term vacation rentals, however, buying a home is by no means a barrier to entry.

  2. What is Airbnb Rental Arbitrage? ‘Rental arbitrage’ is the act of renting a property long-term and then re-renting it on a short-term basis on platforms like Airbnb and HomeAway. Rental arbitrage is a business model that requires little investment, provides positive cash flow, and poses far less risk — and yes, it’s entirely legal.If you’re wondering how to start an Airbnb business or considering a move into Airbnb arbitrage, we’ve got you covered. Here are the best arbitrage opportunities in the United States.

  3. Airbnb Rental Arbitrage Methodology For this study, we leveraged long-term rental data from a 2019 report from the U.S. Department of Housing and Urban Development. We then aggregated AirDNA’s short-term vacation rental data for two-bedroom properties from nearly 3,000 counties and filtered for destinations with at least 100 active listings. The report — which is based on county-level data — ranks U.S. counties by the difference between short-term RevPAR and long-term, lease-style rental revenue.

  4. States With The Highest Potential for Rental Arbitrage Starting from a state-level view, below is a map highlighting the states whose counties have the highest average arbitrage potential. Counties in Hawaii top the list where short-term vacation rentals earn on average $3,079 more than than the cost of a traditional month-to-month lease.Other states following closely behind include Tennessee ($2,620), Wyoming ($2,492), Michigan ($2,353), Colorado ($2,341), Pennsylvania ($2,060), and Massachusetts ($2,059).

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