How to Find The Right Property for Airbnb in Any Market…

what's up guys it's james here and in today's video we're going to talk about how to find the right property for airbnb in any market now in an upcoming video i'm actually going to be revealing to you guys how we're able to find the best possible markets uh for airbnb in all of the world and all of canada and all of the us and spoiler alert it's because we spent over 10 000 on airbnb data from air dna and we got their best places to invest report we've got access to the top of the line

report on the absolute best places to invest your money in short-term rental properties so if you're interested in working with our team to help you find the best places for you to invest help you to succeed with short-term rental investing then the first step is checking out the link in the description down below and checking out the free training that we put together and the free analysis spreadsheet that we're gonna give to you just for checking that out and for signing up for that training if you're interested after that you will also be able to

schedule a free one-on-one strategy call with our team where we can help you to brainstorm and strategize so that you can successfully invest in short-term rentals whether you are just starting out and brand new whether you've been thinking about maybe dabbling into the short-term rental space converting some long-term rentals starting to invest in short-term rentals or whether you're a full-blown short-term rental investor and you want to be able to scale your portfolio more effectively more profitably anything wherever you're at on the spectrum there make sure that you check out the link in the description down

below access that free training make sure you get in touch with our teams we would love to help you invest successfully in short-term rental properties that being said let's go ahead and start talking about specifically how to pinpoint the best properties in a market for airbnb now there is a bit of a nuance to this a lot of people i see going out there and think that just any property in a given location will perform well on airbnb but that's really not the case i've seen people make the mistake of buying a property that ultimately

they spent x amount on and for that amount they could have gotten a way better property without spending any more money they could have gotten a way better property they would have performed way better on airbnb and gotten them way better returns and i'm talking you know 20 30 50 even 80 percent more that they could have gone have they just picked the right property and so what you need to do first off is do your research on your market now again if you want to learn exactly how the step-by-step process there's a link in

the description to a free training on that but i'll give you the bird's eye view here is it basically you want to get data that's going to be your biggest friend when you're trying to figure out which types of properties and which property specifically to purchase in a given area and in that data you're going to be able to find some sort of hidden secrets now the first one is you're going to be able to figure out which types of properties in general perform the best so for example if you're in a like let's say

we've got a i've got a member that i work with in upstate new york and so there's a few different options i've got another member in trembla and there's a few different options four types of properties is it going to be by the mountain is it going to be by the water you know is it going to have a big backyard is it going to be in a subdivision what type of property in the sort of setting of the property that's going to be your first stop when you're looking at the data figuring out which

types of properties tend to perform the best once you've gotten that figured out the next step is going to be to find what i call the gap now the gap is basically a phenomena let's call it that i've found to exist in short-term rental performance where the uh the cost increase in purchasing a larger property does not go up multiple way so it's not like when you buy a two-bedroom property it's gonna cost you twice as much as buying a one-bedroom property nor is a four-bedroom property going to cost you twice as much as a

two-bedroom property right you'll generally see a small increase but it's not going to be proportionate it's not going to be doubling in price as you double in size because obviously you've only got one roof still you've only got one hvac system you've only got one whole you know water system so you don't have to duplicate all of those big fixed expenses with buying a property now the other thing that i've realized in tandem with that and this is what i call the gap is that oftentimes you will get a multiple by increasing your bedrooms on

airbnb but it really usually happens in one specific jump and that's what i call the gap so for example what i mean by this let's just get very real so you can understand what i'm saying here is that if you look at any given area there's going to typically be if you look at the data a gap where the amount of earnings you can make the amount of bookings you can get in a given year jumps dramatically as soon as you get that one extra bedroom so you might see okay well one bedroom properties perform

okay and two bedroom properties perform a little bit better three bedroom properties perform a little bit better than that but then whoa as soon as you get to that fourth bedroom suddenly the numbers really spike and the cool thing is like i just mentioned the property value is not going to just spike so what's gonna happen is that you're gonna find it varies by area but you're gonna find that usually somewhere between three and six bedrooms you're gonna see a big spike in how much the listing can bring in in a given year and you

will not see that same comparable spike in the property purchase price and so what that results in is by buying those properties that exist in the gap or after the gap that is going to give you an outsize return on your investment because your revenue is going to be way higher but your purchase price is not going to be substantially higher than buying a slightly smaller property by one less bedroom and the reason for this is pretty simple and in different areas there's always going to be different levels of demand for different types of properties

but what i always like to tell people is that when you buy a larger property you're opening yourself up to a greater portion of demand and as you increase the size of your property there's less and less competition for the demand in that sort of space of property so what i mean by this is that if you have a five bedroom property you know let's say that it can accommodate 10 people well you can now accommodate groups of 1 2 3 4 5 6 7 8 9 or 10 all of them if you have a

four bedroom property you cannot accommodate let's just say you cannot accommodate those groups of nine or ten and so you don't have as much demand for your property but the cool thing is and the reason that the gap exists that big spike is that if you have a very small number of properties in a given area that can accommodate groups of nine or ten then obviously the numbers are going to really shoot up for those properties that can because there's this demand without any supply the other cool thing is that as you increase in size

you generally just get more revenue because larger groups are willing to split the cost among themselves and so they can justify a much higher nightly rate that they're going to spend on the property so that is my number one tip now obviously you want to start with finding the right type of property and then if you combine that with knowing the numbers and being able to identify the gap in your specific market then you're going to really be cooking with fire you're really going to be able to find the best properties like i said i've

seen people go and just not realize this and go and buy a four bedroom property and when they could have just spent a little bit more or even gotten a five bedroom property for the same exact amount of money and gotten way way better returns and they just didn't realize it and so if you want to maximize your returns you really want to get the best possible cash flow the best possible returns and really kick-start that compounding effect of building your long-term wealth then you want to make sure you use your money on the best

possible property and the way to do that is by understanding your numbers understanding exactly what type of property you look for what markets are best to operate in all that sort of stuff really just knowing your numbers before you actually do the deal so again if you want to learn more about exactly how we invest so successfully in short-term rentals or you want to work with our team directly to have us help guide you through the process and really hold your hand to make sure that you don't make any mistakes you don't forget anything and

that you really make sure you cut your your timeline to success in half then make sure you check out that free training that's linked in the description down below and make sure you reach out to our team because we would love to work with you and help you invest successfully in short-term rentals i hope you got value from this video i hope you found it insightful if you did let me know in the comment section drop a like on the video it really does help me to grow this channel and reach more people and be

able to help more people so please hit that like button if you did enjoy this video otherwise have a great rest of your day and i'll see you in the next video [Music] you