Does your vacation rental make a good AirBnB investment?
In 2012, Jon Wheatley bought a $40,000 condo in Las Vegas so that he could rent it out on Airbnb. Wheatley looked at the rates of similar condos on the site and he decided that his could pay for itself.
He bought it then invested 3 weeks and $10,000 on furniture and renovations. After a year of renting it out he made $13,000 in profit.
The financial benefit to an Airbnb Investor is clear. They can make more money from short term rentals than long term leasing. Airbnb announced it is partnering with some of the largest U.S. lenders to allow host income to be used in mortgage applications.
The company partnered with Fannie Mae, Quicken Loans, Better Mortgage and Citizens Bank in its latest initiative to consider home-sharing as a tool for earning extra income when it comes to refinancing a home.
Rise of the Airbnb Las Vegas Investor
The company’s co-founder Nathan Blecharczyk said;
“At Airbnb, we’ve been able to help many reimagine the home as an asset, a destination, and a contributor to the community, Today, some of the nation’s largest financial institutions understand that Airbnb is an economic empowerment tool that can generate important income for families, and they are working to recognize this.”
It’s a great opportunity for a small AirBnB Investor to get into the market utilizing the business model in Las Vegas.
When owners apply for a refinance, they can include their proof of income from Airbnb in the application. The new partnership will allow lenders to consider the income for refi.
Many continue to question Airbnb, saying it could be disrupting the housing market. Many argue the prospect of being able to rent homes short-term keeps them from putting their home on the market.
However, under this new partnership, the mortgage industry will be working together with Airbnb to benefit homeowners looking to refinance their home. The initiative was developed to identify new ways of utilizing income and make it possible for homeowners to maximize their investment.
The project is part of Fannie Mae’s work to find new, innovative ways to expand the availability of affordable mortgage credit.
Property management companies are devoting themselves exclusively to assisting AirBnB Investors. On upkeep & maintaince so it’s easy to see why this market is quickly becoming more appealing in Las Vegas.
For more information on AirBnB in Las Vegas:
Here’s what some of the lenders say about their new partnership:
Quicken Loans CEO Jay Farner said;
“We are very excited to be collaborating with the leader in home-sharing and tech-driven property rentals.
Technology is at the heart of everything we do at Quicken Loans,
so it is a natural fit for us to partner with one of Silicon Valley’s most innovative companies,
Airbnb and Quicken Loans are firmly aligned to drive innovation in the real estate industry to dramatically improve and simplify client experience,
as well as saving homeowners time and money,”
And Better Mortgage CEO Vishal Garg commented:
“We are proud to be working with Airbnb and Fannie Mae,
to make it easier for hosts to reinvest in their most important economic asset, their home,
Better Mortgage can now digitally underwrite the income and offer hosts better home financing options than previously possible.
We believe this new product could allow hosts to capture substantial interest cost savings relative to a traditional mortgage,”
To have your own vacation property that is appreciating while also producing an income is a prudent investment lease contact me