Pros and Cons of Buying Existing STR Properties

Description

So, you’re looking to buy a short-term rental property but nervous about its potential to make money.

What if you could buy a STR that’s already doing well on Airbnb?

Alex Breen is Founder of BnB Buyer, a biweekly newsletter and website where you can find existing short-term rental properties that are on the market.

On this episode of Get Paid for Your Pad, Alex joins me to explain how he identifies properties that have a STR history for BnB Buyer and which markets have good deals on existing short-term rentals right now.

Alex walks us through the advantages of buying an existing STR versus a home without a history on Airbnb and discusses the downside of limiting your search to existing short-term rentals.

Listen in for Alex’s insight around trends in the STR market in the last 12 months and learn how BnB Buyer can help you de-risk the process of buying short-term rental properties for your portfolio!

Topics Covered

How Alex’s own search for STR properties inspired the creation of BnB Buyer
How Alex identifies properties that are good candidates for Airbnb or likely to have a STR history
The advantages of buying existing STRs vs. homes without a history on Airbnb
Why selling an existing STR as a business adds value to the property
Why Alex hasn’t seen a significant price difference between existing STRs and comparable properties in the same area
How most properties on BnB Buyer bring in 15% to 20% gross revenue to purchase price
The disadvantages of limiting your property search to existing short-term rentals
Alex’s insight around trends in the STR market in the last 12 months
Why real estate prices have come down a little (but not enough to offset interest rates yet)
What markets Alex suggests for finding good deals on existing STR properties