Michael Griffin discusses the best strategy to buy investment real estate for Air BnB.
Listen to the interview on the Business Innovators Radio Network:
https://businessinnovatorsradio.com/interview-with-michael-griffin-founder-of-wealth-by-real-estate/
One of the best strategies to buy investment real estate for Short Term Rentals (STRs) is researching and comparing different markets. It’s important to identify regions with a demand for short-term rentals, such as popular tourist destinations and areas with high concentration of business travelers, Investing in areas likely to have heavy foot traffic can increase homeowners’ chances of attracting more guests. Additionally, it’s wise to determine if any laws limit STRs, the amount of days you can rent, and how many people can occupy your property at any time as a short term rental.
People should also consider the type of rental they want to purchase: a single-family home, condo, Townhome, etc. Single-family homes typically offer greater potential for profits due to their size and ability to charge more as they typically have more bedrooms. Still, they come with higher maintenance costs due to the increased responsibility of caring for a property. Condos or townhomes offer you less maintenance but having neighbors sharing walls and the size of the properties can limit you greatly.
When finding the right property, it’s helpful to look for features that will attract guests – proximity to attractions or amenities such as public transportation, and highways are key. It’s also important to consider the potential for appreciation — investing in an area where home values are likely to appreciate over time can be beneficial in the long run. Finally, people should calculate related expenses like insurance and taxes to ensure their investment is profitable. With careful research and analysis, it’s possible to find an ideal real estate investment for an Air BnB business.
Michael explained: “Once you have identified the ideal area and type of rental, it’s important to inspect the property thoroughly before committing. Look for any signs of major issues such as mechanical, sewer, roofs, electrical and plumbing that need to be fixed or replaced, as this will add up costs down the line. Additionally, consider installing safety features such as fire alarm, smoke detectors, and exterior security cameras to protect your investment from potential damages due to accidents. If the property has older appliances or fixtures, replacing them with newer models could also help improve the appearance and make the space more attractive to potential renters.”
Investing in real estate for a STR business can become a lucrative venture with long-term benefits. By carefully researching different markets, using the right strategies for finding ideal properties, and implementing effective marketing plans, owners can increase their chances of success and maximize profits from their investments.
About Michael Griffin
Michael Griffin began his real estate career in 2002. He’s helped hundreds of buyers and sellers, & personally invested in many residential rentals and fix and flip properties throughout the Denver metro area. He’s helped many property investors create wealth through real estate, educating them along the way to ensure they had the tools necessary to succeed in property investing. Michael is owner or partner in several other types of businesses including a construction company, Restaurants, Staging and STR turn key setups, Car Sales.
Together over the past 6 years, Michael and his wife Brianna have successfully completed almost 300 fixes and flips, and acquired over 30+ million in real estate including long-term, short-term, and commercial rentals. Approximately 175 of these transactions were in 2021 and 2022 alone. They own 7 types of real estate businesses together including: brokering, fix and flip investing, property management, staging, wholesaling, investing courses, and a title company. This past year they launched Wealth By Real Estate which offers online courses for anyone looking to invest in real estate. You can find them on Instagram, Tic Tok, Youtube, and Facebook and look out for their new podcast. @WealthByRE
Learn More: https://wealthbyre.com/