I have a friend who is thinking about buying a low-end $380K property in a tourist town and letting it through Air BnB who will also property manage for 15%. The nightly rental seems to be around $150 on average and Air BnB gave indications that he should expect 50% occupancy, which would be a 7% gross yield. With all outgoings (interest on 100% loan,insurance,management,utilities) it seems to around 4K -ve.
Does this all sound reasonable for an Air BnB investment? Does anyone have any experience with the pro's and cons?
Cheers
Does this all sound reasonable for an Air BnB investment? Does anyone have any experience with the pro's and cons?
Cheers
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