EP 112: Investing Q&A: Investing with Friends? Thoughts on AirBnB Properties?

I think we can agree that buying an Airbnb investment property has crossed all of our minds
…at least once!

Now, sure… I get it. There’s something fun about the idea.

There’s also the potential for great cash flow.

However,

This is a strategy where the consequences of being naïve can be devastating.

Now, look.

If you’ve been considering this strategy, you need to understand that…

An Airbnb strategy is completely different to the typical “buy and hold” properties that most investors are used to.

Short-term rentals can be an incredibly active strategy with a lot of volatile variables,
Having the right knowledge and the right team could be the difference between success and failure.

So, to give you an example of some of the differences…

Let’s start with finances

I’m sorry to say that financing an Airbnb property will be a much more difficult task than a typical property…
Often resulting in the sacrifice of a higher deposit and a lower borrowing capacity.

Now, before you start damning the responsible lending policies… (I don’t blame you btw 😅)
Take a second to look at it through the bank’s eyes.

1. Airbnbs offer no guarantee of income
2. They’re most common in tourist locations
3. Not to mention that we’re currently in a recession!!

Anyway, I’m sorry!
Maybe I’m being a bit harsh here… 😇

However, recently I was asked for my thoughts on Airbnb and short-term rentals.

To tell you the truth,

I’ve also seen a lot of people do incredibly well with this strategy despite the challenges.

So, luckily for you…

In this week’s Q&A podcast episode, Grant and I will be breaking down our full thoughts on short-term rental strategies and whether we’d consider adding one to the portfolio anytime soon!

DISCLAIMER:
All information we share is NOT financial or investment advice and is purely intended for entertainment and educational purposes only. Always seek professional advice before acting on any financial decision