I've been thinking about RE investing lately and am looking in the Catskill region. Is zip code 12414 are good area for Airbnb? What are the regions that is good for airbnb rentals? I saw a house for sale, turnkey for $500k and ready for airbnb listing but hesitant b/c I feel like when things go back to normal, prices in Catskills will come down a bit.... Open to suggestions / advices.
This is my first step in RE investing and only have around 150 to 250k to invest.
Are there better areas / states to invest vs Catskills? It doesn't have to be airbnb or residential - can also be commercial and I might be able find some friends to come into the deal as well. Thanks for any leads or advices!
I dont know much about airbnb hosting, however, some general pointers. First off, ask yourself what sort of investor do you envision yourself being; actively involved, pass it to a management company, micro managing etc. I believe airbnb/short term rentals are very hands-on. There are management companies that do it for you though. I would search that zip code and see what short term options are available, if theres not much there, chances are demand isnt great. If there are rentals, check the comps. See how much others are renting theirs for and take and average (remember different times rates fluctuate). Now work backwards, how much would purchase cost, down payment, closing, taxes, repairs, lawn maintenance, w&s, insurance etc cost annually. How many rentals would you need to cover and make a decent return. Be mindful, with airbnb, housekeeping is a rolling number, as with every rental theres more housekeeping costs. Then see if it makes sense in your mind. I did this exercise with a few people and they realized the properties they were looking at made no sense at the end of the day.
I wouldnt jump into commercial unless you know what you're doing. Start with residential to minimize risk exposure. Other option is becoming an LP (limited partner) on someone's deal.