Taking out an Arizona Airbnb loan may seem like a risky prospect. However, it doesn’t take much beyond knowing how to post a listing to make money using the platform.
In the early days, peer-to-peer marketplaces for home-sharing and rentals were little more than couch-surfing sites. Born out of necessity due to market conditions, these sites thrived because homeowners needed to generate extra income to make ends meet and travelers needed less expensive accommodations. Ergo, most of the rentals listed were either a single room in an occupied home or just a sofa in someone’s Livingroom.
These options still exist, but as the market has improved, peer-to-peer rentals developed too. Nowadays, people not only rent out second homes, but purchase properties with the express intent of renting them out. Data from Savilles concludes the average second home brings the owner a cool $21,000 per year in rental income and most people use a mortgage or Arizona Airbnb loan to fund the initial purchase. Interestingly, the average home is rented out just 17 weeks per year as well, meaning you could easily use yours as a vacation home as well or increase marketing to improve your revenue stream. If you do the math, it works out to $1,235 per week or over $64k annually if you’re fully booked.
The catch: you need to select a property that will rent out and you need to market it well in order to increase your ROI. The good news is, Savilles also researched what people are looking for in their short-term rentals, so it’s easy to pick a place that will get booked and stay booked.
Coastal locations, towns/ cities, and mountains are your best bets as you shop for a property, according to Savilles, and your guests will prefer detached villas/ homes, apartments, and townhomes, in that order. Guests also look for basic features, such as broadband internet and air conditioning while booking, and if you’re in a coastal area, they want easy access to the beach. If your property doesn’t already have special features, it may be worthwhile to use your Arizona Airbnb loan to add them, so demand for your property increases. Not all features will give you ROI, though, so spend wisely. For example, guests aren’t generally looking for golf courses, marinas, and access to water sports, nor are they over-eager about sports facilities, gyms, extra land, and home automation systems. That’s not to say these features aren’t beneficial, but they aren’t as likely to increase your bookings or allow you to charge more as cultural activities and good parking.
The secret to making money with an Arizona Airbnb loan is to keep your space rented out and get the most from each rental. Spend time crafting the perfect ad that demonstrates which features the property has as well as its proximity to local attractions and transit. Be sure to include photos and experiment with the wording. When the property starts off with good features, generating income with it is nothing more than good writing skills.
Level 4 Funding LLC
Arizona Tel: (623) 582-4444
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About: Dennis has been working in the real estate industry in some capacity for the last 40 years. He purchased his first property when he was just 18 years old. He quickly learned about the amazing investment opportunities provided by trust deed investing and hard money loans. His desire to help others make money in real estate investing led him to specialize in alternative funding for real estate investors who may have trouble getting a traditional bank loan. Dennis is passionate about alternative funding sources and sharing his knowledge with others to help make their dreams come true. Dennis has been married to his wonderful wife for 43 years. They have 2 beautiful daughters 5 amazing grandchildren. Dennis has been an Arizona resident for the past 40 years.
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