Airbnb Tip for U.S. Real Estate Investors: Find the Highest Occupancy Neighborhoods in Your City

Airbnb Tip for U.S. Real Estate Investors: Find the Highest Occupancy Neighborhoods in Your City

– Hey, what’s going on? This is Seth from
and in this video, I’m just going to really quick show you a couple of tricks you can use if you’re in the market
for an Airbnb rental and you’re not sure what parts of town or what neighborhoods have
the highest occupancy rate, so like what areas should you be buying in if you want to make sure that property is occupied as frequently
and as often as possible throughout the entire year. Because a lot of times if you just sort of buy where you
think it’s going to be good, you’re just sort of going on your gut, but if you have some actual data to use and you can get some real time information on other properties and
how their numbers look, that can be infinitely more helpful than just buying a property
based on what you think is going to perform well. The tool that I’m using here
is a system called Mashvisor. There’s other websites that
do similar stuff to this but this is the one
I’m most familiar with. I’m just going to show
you how this one works. All you’ve got to do is type in whatever city you’re looking at. For example, I’m going to type in my city, Grand Rapids, Michigan, just as an example and then it brings us to a search page that looks like this. First thing you want to do if you’re just looking
for a high-level overview on what areas of your
town have the best numbers for what you’re looking for, so for example the best occupancy rate for Airbnb properties specifically, you can go ahead and click on this thing and explore the data. There’s number of different heat maps that you can view with this system. For example, Airbnb occupancy rate. Let’s click on this one. What it’s going to show us here is, as you can see, a heat map and if you observe this little
key or legend down here, it shows us that all
the areas that are red have the lowest or the
worst occupancy rate and the areas that are green have the best occupancy rate. Just from this we can see, there’s sort of like
different pockets of town that do pretty well, specifically when it comes
to that single measurement of the occupancy rate. This doesn’t tell us
the cash-on-cash return or how much income each
property is producing; none of that stuff. It’s only occupancy rate. If that’s what we care the most about, we can go ahead and zoom into this and start exploring things
a little bit further. As we can see here, this part of town there’s a bunch of different properties we can click on, if we click
on this thing right here that says 23, it’ll bring this in and we can see all those
properties individually. When we just hover over these, it will show us right off the bat, what the cap rate is and
the cash-on-cash return for the purpose of Airbnb rentals. It also shows us what those numbers are for traditional rentals. There’s actually like several
different data sources that this information is pulled from. I’m not going to tell you
it’s guaranteed to be accurate but in my own experience
of using this site, it’s surprisingly accurate. I think it’s definitely worth your while to verify all the numbers before you actually make
a purchasing decision. For the most part, it
does a pretty good job of pulling in some
fairly reliable numbers. This is basically just telling us that this part of town has a
pretty high occupancy rate. If we click on any one
of these properties here, it will open up a new window and we can look closer
at some of the numbers. Right here, for occupancy rate, it’s telling us that
this particular property is occupied 62 percent of the time. Or you can convert this
to days of the year and you can see it’s occupied
226 days of the year. Pretty helpful to know and obviously if you want to go back and look at any of these other properties, you can see all the
exact same information. This one for example is
occupied 76 percent of the year and this one over here, this one is also occupied
62 percent of the year. It just kind of gives you an idea of what the numbers look like
for a few of the properties in this pocket of town
that does particularly well in terms of the occupancy rate. That’s good to know. Let’s say you want to
look at something like the rental income from Airbnb properties. They’ve got a heat map for that as well. If you click on that heat map, it will give you some
different information and you can zoom in here and, as you can see, the
areas that are green, those are neighborhoods
that produce higher income for those Airbnb properties and the areas that are
red have lower income. Just based on any one of these maps, I don’t think that’s enough
to make a conclusive decision because there’s a lot of other
things you have to look at and consider as well, but when you consider the
income, the occupancy rate, the Airbnb cash-on-cash return, which is another heat map
that you can take a look at, and then obviously opening up each property and looking closer at it to make sure that all of
the numbers and inputs actually make sense, it’s a pretty helpful tool that can just very quickly
point you to the areas of town that are most ideal for
this particular type of real estate investment. Instead of spending hours
and hours and hours searching all over place, analyzing hundreds of properties, all just to find out that most of them are a not a good idea, Mashvisor does a really
good job of cutting out a lot of that wasted time and eliminating a lot
of those junk properties and just drawing your attention to the ones that are most likely going to be a better investment
for this particular use or whatever use you have in mind. If you look at these heat maps closer, you can also do the exact same thing for traditional rental properties. If you’re not looking at Airbnbs, but you just want to
buy a long-term rental to lease out to a tenant
for 12 months at a time, that kind of thing, it can do all the same stuff for a traditional rental property, if that’s what you’re interested in. I just thought these heat maps
were kind of a genius idea. Whoever thought this up, just because it makes
it really, really easy to focus on the things that matter and are better investments and kind of ignore the
things you shouldn’t be wasting your time on anyway. If that looks helpful to you, I’m going to have an
affiliate link to Mashvisor beneath this video. It’s,
pretty simple. You can actually get a 25 percent discount on your first payment through them, if you go through that link. I just wanted to mention that. I thought it was pretty helpful. I thought it was pretty cool. If you’re in the market for
either a traditional rental or an Airbnb, whatever
market you’re looking at, this could be something
that could save you a ton of time and make
your life a lot easier. If that sounds interesting to you, definitely check it out. Thanks for watching, best of luck.

4 thoughts on “Airbnb Tip for U.S. Real Estate Investors: Find the Highest Occupancy Neighborhoods in Your City

  1. Be careful with investing in Nashville. The local politicians have basically shut off opportunities for new short term rental investors.

  2. Title is wrong. It's not for investors. It's for US investors, one of only 200 countries in the world. No reason for anyone else to watch this.

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