How to Invest in an Airbnb While Your 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.
There are plenty of reasons to think about investing in a short-term rental property out of state.
Local Vs. Out of State
When thinking about short-term rentals and Airbnb, people usually jump to thinking about great vacation destinations.
While this is true, there is a huge demand for vacation destinations and excellent properties in those locations.
Do not discount the fact that people are traveling to places within 50 miles of you.
Now that we have the idea that there is not a workable business model for Airbnb near you out of the way,
why would you look out of state? There could be plenty of reasons.
You may want to diversify your investments, having an asset in another local could provide a level of diversification that can help you rest easy.
A much better reason is for the economics of it, you get to cherry-pick markets that fit your criteria.
How to Select a Market
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.
Unfortunately, these factors are usually at odds with each other,
so it will be a balancing act to figure out which factors have the most weight for you personally.
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