Many real estate investors here in Phoenix have turned to vacation rentals like Airbnb for cash flow. If you're considering this kind of investment, consider these four points.
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Many real estate investors here in the Phoenix area are making big returns using Airbnb and VRBO.com. If you're thinking about using an investment property to use as a vacation rental, there are four things to keep in mind:
- Location: Phoenix is a destination city, so you want the property to be close to destination attractions like golf tournaments and other sporting events or things that attract winter travelers. Winter is the 'hot' season for vacation rentals.
- Zoning and/or HOA restrictions of the property: Some HOAs don't allow vacation rentals, so check with a property's HOA and the city's zoning codes beforehand to make sure you can use it as a vacation rental.
- Management: You'll want to have a management company in place to take care of it for you so you don't have to deal with tenants coming and going constantly, or the cleaning and turnaround that comes along with it. A management company will handle the bookings, cleaning, and management, making your life as the investor and owner much easier.
- Exit strategy: Like with any investment, think about the end goal you're shooting for. Personally, I'd be focused on the cash flow and eventually liquidating the property to move the money elsewhere. Having a property in a prime location will appreciate over time, setting you up for success in the long run.
Having a property in a prime location will appreciate over time.
If you have any other questions about investment properties and the benefits of vacation rentals, give me a call or send me an email soon. I'd love to speak with you!
