A simple 3 step process to find profitable Airbnb markets

0:00 over the past 12 months my seven Airbnb properties generated an average monthly cash flow of $485 each and none of this would have been possible if I didn't figure out how to find the right markets to launch my airbnbs so in this video I'm going to reveal the three exact steps that I used to identify the most profitable airb markets so that way you can replicate my success and start building your own thriving airb business if you don't know who I am my name is Preston I built an airb portfolio that generates $334,000 per month in net cash flow from just s airbnbs across multiple States but here's the thing My Success didn't happen by chance it was the result of a strategic datadriven approach to Market selection because choosing the right Market is absolutely crucial when it comes to Airbnb investing especially if you're using the Airbnb Arbitrage model now here's what many people do wrong a lot of these Airbnb investors make the mistake of jumping into a market without doing the proper research and Analysis so they might choose a location based on a personal preference or gut feeling only to find out that the market saturated has low demand or subject to strict regulations that can hinder the ability to operate a profitable airb business now as a result they often end up investing into subpart locations that don't generate the returns of hoping for now of course this can be incredibly frustrating and can even discourage people from pursuing Airbnb investing altogether but here's the good news it doesn't have to be this way by following a simple three-step process you take the guesswork out of Market selection also Focus your efforts on the most profitable opportunities so what is this three-step process let me break it down for you the first up is to identify

1:17 markets that are friendly to airbnbs and short-term rentals this means looking for cities and towns that have favorable regulations and have a strong tourism industry some key indicators that I look for are no strict restrictions on short-term rentals steady stream of visitors and tourists having a diverse range of attraction and amenities plus a growing population and economy by focusing on Airbnb Friendly Markets you're going to be able to operate your business with fewer regulatory hurdles and also tap into a larger pool of potential guests and then once you've identified some promising markets the next step is to dive into the data this is where tools like airdna come in really handy air DNA provides a wealth of information on airb markets including the occupancy rates average dayly rates Revenue potential seasonality Trends competition levels Etc by analyzing this data you can get a clear picture of how well different markets are performing and which ones offer the best opportunities for growth and profitability and then the final step is to evaluate the level of competition and saturation in each market now you might be asking yourself K presso what does that even mean it means that even if a market looks great on paper if there are already a ton of airb listings in that area it may be harder to stand out and track bookings now on the flip side if there are a few listings it could be a sign that there's not enough demand to support a profitable airb business so the key here is to find markets that have a healthy balance of demand and Supply you want to look for areas where there's enough demand to generate consistent bookings but not so much competition that you're going to struggle to differentiate your listing and to make this video even more valuable I don't want to just leave you with a information and not show you how to put this in real use so what we're going to do is we're going to dive into

2:33 the three underrated markets that offer great potential without breaking the bank keep in mind we're not chasing the highest possible returns here instead we're looking at affordable markets with solid fundamentals and room for growth first up is Mansfield Ohio now Mansfield might not be the first place you think of for Airbnb but the numbers tell an exciting Story one of the main metrics I look at similar to the 1% rule in long-term rental investing is the revenue to price ratio I personally like to look for anything that's 17 plus% so for example let's say a property cost $100,000 I want to see a minimum minimum of $17,000 in annual revenue in order for this property to meet my cash on cash and also cash flow returns just like the 1% rule it's not the end all Beall metric but it's a good indicator to me whether or not a property or Market is going to be worth exploring further and again keep in mind that these are General numbers across the market in order to get more granular about the numbers we're going to want to Deep dive into the specific properties to see how the property is going to perform now here's where it gets interesting Mansville occupancy rate is only 46% you might think that's a red flag but I see this as a massive opportunity with the right marketing and Property Management there's a huge potential to boost occupancy and also really maximize your Returns the average da rate is about $216 across the entire year the average revenue potential is $ 46,4 47 the seasonality score is 68 and the average home value is about $164,000 making it relatively affordable to enter the market now what I'm going to do is head over to airdna and show you how I use that tool and also show you what I like to look out for when I look at different properties and also look at

3:50 the highest performing properties in a given Market I figure out how I can use those elements and put them into my own listing so I'm here on airdna I'm going to head over to the manold market so what I like to do from here is I like to to the short-term rental listings and then I like to sort by Revenue so what this does it's going to list out the highest revenue potential properties and then from here I like to look at the different design the photography the different amenities that these properties have and also the location so for example this property has a pool it's generating $124,000 per year revenue and I like to take a few top performing properties so that way I can look for potential properties similar to this and that way I know how to compete with different properties within this given market and give us a good idea of what we need to put in our own property to perform to these levels as I say don't fix what isn't broken now what makes manille unique it's got a blend of history and pop culture the Ohio State Reformatory where the shashing Redemption movie was filmed here which is a major draw plus there's the Richland Carousel Park and the nearby snow tril ski resort for year round attractions the key is to tap into these unique selling points and Mark your airb be as a perfect base for exploring Mansville film history but also enjoying its outdoor activities now with the right approach you can significantly boost your occupancy rate and turn Mansfield into your personal Air beamy Gold Mine next up on the list is Waco Texas now Waco is our most established Market of the three I'm going to share today but it still offers plenty of opportunities so let's look into the numbers the revenue to price ratio is 20% the average augment rate is 50% average daily rate we're looking at $226 the revenue potential is a little bit

5:07 lower than manold Ohio at $347 41 and again keep in mind this is just average numbers across the entire Market the seasonality score we're looking at 63 and the average home value is $172,450 now you might be wondering why I'm recommending a market with so many listings and here's why wo's popularity means that there's a proven Demand with only 50% occupancy there's still room for newcomers to succeed like I said the average home value is about $172,000 which is is relatively affordable for the potential returns and with the highest average daily rates among our three markets visitors are willing to pay more for Quality accommodations we're going to head over to air DNA again we're going to do the same exercise that we did for Mansfield we're going to head over to the St listings we're going to sort by Revenue again and as you can see if you have a top performing property you can absolutely crush it with your airbnbs some of these properties are generating several hundred thousands of dollars per year in revenue and so what you're going to want to do again is to find top performing properties see where they're located see how they do their design the amenities and everything in between the photography to see how they're standing out now wos withal is multifaceted so for example Magnolia Market thinks that chip and Joanna gains of the fixer upper Fame is a major draw you also have Baylor University that brings in a steady stream of visitors you also have the Texas Ranger Hall of Fame and the Dr Pepper museum that offer unique tourist experiences now with so many listings you have to ask yourself how can you stand out maybe you can offer a fix upper inspired design or you can even partner with local attractions for special packages the key here is to tap

6:24 into Waco's popularity while offering something unique the third Market is Roswell New Mexico if you're looking for more predictable in come then this might be your answer the revenue to price ratio is strong at 22% the average augment rate is also the highest at 63% the average daily rate is a little bit lower at $18 but the average revenue potential is one of the highest at $40,000 the seasonality score is great at 80 which also reflects in the average occupancy rate and the average home value is about $185,000 the seasonality score here is crucial it tells us that Roswell has consistent demand throughout the year not only during peak season so this translates to more reliable bookings and also steady income and again same exercise we're going to head over to airdna sore by Revenue so if you sore by Revenue you can take a look at all the top properties so the biggest thing you want to do here is take out a piece of paper or even Excel spreadsheet and you want to write down all the unique amenities the design the photography and also where the properties are located to see how you can apply that into your own properties now cool thing about Roswell is for its alien lore but there's more to this Market we have the UFO Museum and also the research center that draws sci-fi enthusiasts year round there's a Bitter Lake National Wildlife Refuge that attracts nature lovers you also have the New Mexico Military Institute that brings in a steady stream of visitors for events and graduations and again your marketing strategy is going to be crucial here so you want to lean into the alien theme if you want but also highlight the roswell's natural beauty and also educational attractions by appealing to a diverse range of visitors you can maintain that high occupancy rate and maybe even push it higher as you can see by following this simple three-step process and using tools like

7:41 airdna you can quickly evaluate the potential of different markets and make data driven decisions about where to invest now we're going to talk about how we can put this three-step process into action the first thing is start by making a list of potential markets that interest you look for cities and towns that have strong tourism industry and also a growing economy the second tip is to use tools of airdna to gather data on each market you also want to pay attention to key metrics like Revenue to price ratio seasonality and also the revenue potential that we already went through tip number three is to evaluate the competition level in each market you can check this by looking at the number of existing airb listings you also want to look for markets that have a healthy balance of demand and Supply tip number four is once you've narrowed down your list to a few top contenders you're going to want to dig deeper into the regulatory environment and also the local market conditions make sure there are no red flags that could hinder your ability to operate a successful airb business now if you want to dive deeper into these strategies and tools that I use to find profitable airb markets and also build a thriving airb business put together a free training where I walk you through the strategies and tactics you need to succeed with Airbnb whether you're starting with Arbitrage or going straight into purchasing now in this training you're going to learn the top five indicators of a profitable airb Market how to use airdna and also other tools to analyze Market potential I'm going to go through my proven strategies for creating standout listings and generating consistent bookings how to negotiate win-win deals with landlords how to automate your operations how to scale your portfolio quickly all without needing to buy a single property I'm also going to go through case studies of successful Airbnb Arbitrage properties in different markets if you want to get

8:57 instant access to this free training you can click the link in the description below now let's quickly recap the three-step process for finding profitable airb markets number one is to identify airb Friendly Markets with favorable regulations and a strong tourism industry number two is to analyze Market data using tools like airdna to evaluate key metrics like occupancy rates average daily rates and also the revenue potential number three is to evaluate competition and saturation to find markets with a healthy balance of demand and Supply by following this process you can use data to guide your decisions and you can take the guesswork out of Market selection and focus your effort on the most profitable opportunities remember building a successful Airbnb business starts choosing the right market so don't skip out on this crucial step take the time to do the research and Trust the data it can make all the difference in your success if you found this video valuable please make sure to smash that like button and subscribe to the channel for more airb investing content thanks for watching I'll see you next time