Investing in a Beach House Airbnb

I selected this location based off Virginia Beach’s rank in the article Best Cities to Buy Airbnb. Which claims the average annual profit is $33,208.

This would include part time listings, small condos, as well as large beach houses in the average. This is enough profit to make me interested in exploring further.

First stop on research is Airdna’s Market Minder tool. At this point, I am just using the free version to get a feel for the market to decide if I want to do further research in the area.

Airdna Research

I found a property that is listed at $710,000 on Zillow. It looks to be in good condition, ready to be a rental property. Looks like the sort of asset I would not feel bad about owning. Then I go back to Airdna to see what I could earn if this were a STR.

Next I Look to Zillow

Income:  $96,000 Gross Rental Income Expenses: $73,900 Net Profit: $22,100

What are the expenses?

If the annual profit is $22,100, the next thing I like to find out is what the cash on cash return would be. The cash outlay is a $142,000 down payment, and say $20,000 in furniture and other rent ready expenses for a total of $162,000.

The Return