10 Rentals in 5 Years by Investing in Overlooked Airbnb Markets

Episode #952
When you think about short-term rental and Airbnb markets, what comes to mind? Joshua Tree, the Smoky Mountains, maybe Destin? We all know about the famous short-term rental markets, but what about the not-so-famous ones? You know, the unsexy markets where you book an Airbnb for a conference or when you’re going to see extended family? That’s right; we’re talking about everyday American markets like Cincinnati, Ohio. But surprisingly, these markets make some of the best investments for short-term rental investors like Jarrod Tucker and Yiwei Cheng.
Jarrod and Yiwei moved to Cincinnati for work shortly after catching the real estate investing bug. They knew they wanted to invest in real estate, but long-term rentals only came with measly cash flow that would never support their passive income goals. So, what’s the next best option? Short-term rentals! Unfortunately, Cincinnati isn’t known as a popular vacation getaway, but it didn’t have to be to support Jarrod and Yiwei’s cash flow dreams!
Now, five years after the start of their investing journey, they have ten rentals of their own and manage a couple dozen more for other investors. The question is, how do you make money with short-term rentals in an unsexy market? Jarrod and Yiwei walk through their tips for finding the right properties, keeping occupancy rates high, buying real estate when your DTI (debt-to-income) gets maxed out, and why you MUST separate yourself from the basic short-term rentals to reach your financial goals.
~~~~
Join BiggerPockets for FREE 👇
www.biggerpockets.com/signup?...
~~~~
Expand Your Investing Knowledge With the BiggerPockets Books:
store.biggerpockets.com/?utm_...
~~~~
Find an Investor-Friendly Agent in Your Area:
biggerpockets.com/agentmatch
~~~~
Find Investor-Friendly Lenders:
biggerpockets.com/findlenders
~~~~
Hear Dave and Henry On the “On the Market” Podcast:
link.chtbl.com/OTM
~~~~
Investing in Short-Term Rental Properties: A Beginner’s Guide & How to Get Started:
www.biggerpockets.com/blog/sh...
~~~~
Top 5 Short-Term Rental Markets For High Returns and Growth:
www.biggerpockets.com/blog/be...
~~~~
Connect with Jarrod and Yiwei on BiggerPockets:
Jarrod: www.biggerpockets.com/users/j...
Yiwei: www.biggerpockets.com/users/y...
~~~~
Connect with Dave:
BiggerPockets: www.biggerpockets.com/users/d...
Instagram: @thedatadeli or / thedatadeli
~~~~
Connect with Henry:
BiggerPockets: www.biggerpockets.com/users/h...
Henry: @thehenrywashington or / thehenrywashington
Show notes at: link.chtbl.com/BPRE
00:00 Intro
01:36 The Accidental Airbnb Host
08:07 Short-Term Rentals in…Cincinnati?
13:16 Are Short-Term Rentals Saturated?
19:25 Tips for Higher Occupancy
22:10 Scaling with High DTI (Debt-to-Income)
31:45 Advice for New Investors

[@duanemoores6272]

Hi Henry, We own 1 STR near the old Dog Patch theme park south of Harrison AR. You probably know Johnny Morris (of Bass Pro/Cabela’s ) has purchased the theme park land, and a lot of land around it. We also own another 11+ acres all within 25 minutes of what is to become Johnny’s newest conservation themed place. We are wondering about building more specific built vacation homes. I’m thinking we should wait until the park is closer to completion before building. If you have a moment what are your thoughts? Thank you for your time and great videos; always enjoy hearing your insights.

[@LarossaConstruction]

I've had such a hard time wrapping my head around STVRs. I get nervous straying to fair away from the warm, comforting 1% rule (7-8% Cap Rate). I can't get myself to buy something unless it has the "foundation" of a strong long term rental. What are your thoughts on that?

[@ramirorodriguez2327]

I listed my home for rent and was contacted by a company who is interested in Airbnb arbitrage. They agree to sign a 12 month lease and of course will Airbnb and manage the property for me. I currently dont have the time to manage the property as an STR. But would like to still collect rent payments. What has you experienced been for people who have done this or are currently allowing this in your properties? If I had a little more time I think I would try to run it myself but I’d like my property to be more passive and collect rent each month. What are your thoughts and experiences? Rob, I think you are my guy for this one!

[@johnclark4410]

I let a tenant run an arbitrage and it worked out great. I made sure he had all of the risk in the deal though. So in the addendum I put double deposit, max number of guests, he’s in charge of all maintenance except for major items like roof and hvac, and I don’t provide the washer/dryer.

[@tdjeh379]

Airbnbs disappeared in New York

[@Thedreadedstone]

3rd!

[@luciancurelusa6508]

Is anyone here investing in europe ? And if, where ?

[@papi944]

Belgium baby

[@luciancurelusa6508]

@@papi944 have you started ? Or new to this ?

[@lougtv753]

It amazes me how many americans live in this country and dont know about other states here except the one they live in. Ohio has like 5-6 cities and multiple pro sports teams. People really need to start doing their research.

[@elleofellemanagement526]

Ohio has more than that but 3 major cities are Columbus, Cleveland, Cincinnati

[@randynachreiner9620]

4th, and May the 5th be with you!!

[@jonathanmpagi1978]

2nd

[@MrJosh066717]

First!!

[@christran5822]

So hard to listen to someone where everything sounds like a valley girl with a question mark at the end of most words.

[@sintay8002]

Rude. Sounds like you need better listening skills, bud.

[@epg423]

The key is to 1. Exercise 2. Eat protein 3. Sleep 4. Clean teeth to boost endorphins, dopamine, serotonin etc. and then nothing will bother you. We'll not nothing but things will bother you less. I know I need to do these things because I get angry easily when I don't, which I typically don't make time for them

[@JJ-pl2tl]

Omg i hated listening to her. Thought it was just me.

[@MAD-DUKE]

@@JJ-pl2tl @christran5822 so what are you suggesting? That people should be vetted out of BP podcast because they have an accent?

[@jfarrar231]

The worst type of people. Every sentence is a question 🤦 I instantly stop talking/listening to those type of people.