Short-Term Rental Investments Aren’t as Easy as You Hear on TikTok
Skift Take
A Florida real estate investor emphasizes that the purchase price and revenue extraction are crucial for making money from an Airbnb investment.
Taylor Jones, a Florida real estate investor, tells us the key to making money from an Airbnb you invested in is the purchase price for the property — and how much revenue you can extract from the property.
While that may seem like an elementary point, it is often overlooked. “It’s all about what you buy it for,” Jones told the Short-Term Rental Report. He admittedly has skin in the game, running Techvestor, which helps people passively invest in short-term rentals.
He tweeted the other day about a 6-bedroom home in Indio, California that was up for sale for $1.6 million. “This Airbnb made $194,000 in revenue last year,” Jones wrote. “If you buy it for the current asking price, you’ll LOSE MONEY.”
He broke down how he calculated that the home at that sales price would mean negative cash flow of $21,683 for the year, assuming a 25% down payment, 7.75% interest rate, 40% in operating expenses, and an 18% property manage
