Sep 13, 2022
One of the first things most
people think of when they think of renting their property on Airbnb
is “Someone is going to destroy it!”
Yes,
this is possible but it’s very unlikely. The truth is, I actually
think that long term
rentals can be much
more risky than short term rentals. I’ll explain
shortly.
I’ve been investing for over 12 years and throughout the years I have not been particularly biased towards any one specific type of real estate to invest in. I started my career as a commercial real estate broker working exclusively with investors and different real estate investment options.
The small team I worked with
completed over 2 billion (with a B) in real estate transactions
including everything from shopping centers, to warehouses, to
apartment buildings.
There are many, many different niches of real
estate to invest in and we can take it one step further. Within
each “sector” of real estate lies even more sub-niches. Short term
rentals are just one sub-niche of the residential housing
sector.
You may say… hey Tim… short-term
rentals are part of the hospitality sector! They are for vacations!
But the fact is, people are living in short-term rentals
now.
So which type of real estate is the best to
invest in? Short answer; it depends. It depends on your risk
profile and what your experience is
But
to make things simple, this week we will break down and compare
just two different niches: Short-term rentals vs. Long Term
rentals.
I own both and continue to invest in both so
feel that I can provide you some great insight in this week’s
podcast. Let’s discuss the pros and cons between the two
including: