AirDNA’s new feature: Airbnb Properties For Sale!

AirDNA is a data mining website that gives us access to data on how short term rental properties perform all over the world, it’s actually really cool. It allows you to look at pretty much any short term rental property all across the world and see exactly how much revenue they generate, what their average nightly rates are their occupancy rates. And you can also look at the aggregate data.

Unknown Speaker 0:24
What’s up guys, in today’s video, we’re gonna be going over a really cool new feature that AirDNA just launched. And for those of you who don’t know, AirDNA is a data mining website that gives us access to data on how short term rental properties perform all over the world, it’s actually really cool. It allows you to look at pretty much any short term rental property all across the world and see exactly how much revenue they generate, what their average nightly rates are their occupancy rates. And you can also look at the aggregate data to see how well three bedroom properties, for example, and a specific listing tend to perform. So obviously, super, super helpful and beneficial and valuable to short term rental investors, property managers, etc. Because it just allows us to run projections on properties really, really well. And see how our listing is performing help us optimise performance, there’s all these really cool things. So one of the really cool features that AirDNA recently launched is their for sale properties. Let’s jump onto the computer here and take a look. Basically what this is doing. You can see I’ve got the entire US market here loaded up. And there’s half a million properties that are loaded up into the for sale properties and in AirDNA here. And what you can basically now do is look at specifically, how much are they going for? What’s the asking price? How many days have they been on market, what’s their revenue or revenue potential. And so you can really quickly filter for properties that are actually going to give you good returns. If you’re an investor, this is super, super helpful. Now a couple things to be aware of about this tool. Number one, you can’t actually sort properties that effectively here, for optimising for return on investment. The reason for that is because they don’t actually have any kind of calculation in here yet, I’ve talked to their product team, and allegedly, it is going to be coming down the road. But they don’t have any way to sort by revenue potential relative to purchase price by doing like a ratio or percentage. And so all you can do is filter by, for example, price high to low bedrooms, square feet, how old the listing is, like how many days on market it’s been. So it’s still got some room to go in order to make it super, super user friendly for specifically finding the best investment properties. But it is still a really, really good tool nonetheless. Now, the other thing to be mindful of is that with this tool, this revenue is just a revenue projection, it’s their estimate. And it’s not always all that accurate to say the least. So you don’t necessarily want to go and buy a property just based on this actually, in fact, I would I would highly, highly recommend against that. You don’t want to go and just buy this property because boom, AirDNA says it’s gonna make $41,000 Because you really need to dig into that a bit more and do more due diligence. So think of this tool as more like a high level filtration system, as opposed to a you know, an all comprehensive property analysis system. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnb and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnb. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties. There’s actually another free training linked in the description down below as well, that will be a really great fit for you. So whether you want to invest in short term rental properties and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below. It’ll definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below. It’s really just going to allow you to quickly pass on or eliminate properties from your search. Because for example, let’s go into a more granular market. Like let’s look at, for example, Los Angeles. Right? Now if we look at Los Angeles, and we look at properties for sale come over here, we can see that

Unknown Speaker 4:55
let’s say for example, this property that is going to generate about $250,000 in revenue and says, which, you know, that’s great quarter million dollars in revenue a year who doesn’t want that, but the purchase price is $5.2 million on that, there’s just no way that the numbers are ever going to make sense on a deal like that. Take an example like this one as well, like this property does $87,000 a year in revenue is what they’re projecting and it’s selling for $2.8 million. Like the ratio there is absolutely insane. There’s just no way that after paying for mortgage paying for your property taxes, your utilities, your your cleaning, your maintenance, all these things, it’s actually going to pencil out, there’s no way so you can just quickly eliminate those properties from your search. Whereas this property that’s for sale for 588,000, and has revenue potential of 72,000, that those numbers look a lot better, maybe not quite good enough. But it obviously looks a lot better than a property that’s going to do marginally more an extra $15,000 a year, but costs, you know, five times as much to buy. So really, you can quickly filter properties. But then as you can see, if you dig into this one, let’s take a look. You know, I would say this property’s not quite Airbnb ready, right? If we look at it, there’s only two photos, it’s obviously pretty, pretty beat down. And so again, it’s not a foolproof system, it’s not like you can just buy this property and bring in $72,000 a year. But it is still a very useful tool for just filtering down your search results at a high level. So I find that really, really cool. I think it’s a great tool, that’s just going to speed up the analysis process. And make sure that you’re not overlooking any, any potentially really good deals. Now the other thing that’s cool here is obviously when you have a good listing, you can come through and you can actually look through all the photos of the listing. So I find that to be just super helpful, because you can just quickly look through it and see how the property looks, what kind of shape it’s in, see some more details. Now the next thing you can do is, I don’t know if there’s a if there’s a spot where they link out to it yet, which is kind of silly, but you can just look up this MLS ID, you can copy this, paste it over here. And then you can just pull up the actual MLS listing. In theory, maybe in practice, it doesn’t actually work.

Unknown Speaker 7:20
Now, not really that great, but probably the easiest thing to do is going to be to just come over here, put in the address, and then I’m sure the listing will come up. So there you go, you got it on Redfin now. So there you go, that’s really cool. Now, the next thing you can do is look at the projected revenue, you can learn more here about how how that is calculated how they actually run that projection. And again, like I said, not incredibly accurate. And you have to bear in mind as well, that this isn’t taking into account any of the qualitative stats on the property. It’s just taking into account more quantitative stats about the property, like the number of bedrooms it has, the market score that it’s got, and our bathrooms, the amount of square footage. And so that’s why you end up with a property like, for example, this one having a really great revenue projection, because yeah, on paper, it’s a three bedroom, one bath with about 1000 square feet of living space, right. But qualitatively, it’s dilapidated, it’s rundown. And AirDNA software isn’t sophisticated enough at this point to actually know that. So very important to bear that in mind. Now, if we go in here, there’s more you can do than just looking at the photos. You can also look at the projection occupancy hourly rate, that’s cool. You could also now run a quick financial calculator and customise your estimate. So you can input things like property management fee, you might be paying, cleaning fees, property, taxes, maintenance, all these different things. And you can basically just figure out what your actual return on investment is going to be. And again, that’s again, not going to be super foolproof, you can also adjust this rental revenue number. Now this is, again, back of the envelope type math, I would personally recommend having a more robust spreadsheet like the one that we had in the description down below shameless plug, that’s going to allow you to run more accurate numbers, because for example, this doesn’t take into account your mortgage. So that’s a pretty big cost that you’re probably going to want to take into consideration. But obviously, because they want to be apples to apples, everyone’s going to have different mortgage rates, different percentage of the down payments, so I understand why they’ve set it up this way. But when you’re actually looking to invest, you’ll want a more robust spreadsheet than just this one.

Unknown Speaker 9:32
So you can see here, it gives you the cap rate, which would be a really a really useful thing to have on the main page of all the properties so that you could filter by higher cap rate, which would basically just tell you which properties have more revenue for less purchase price. So I’m sure that’s gonna be coming pretty soon. And then you can obviously just come down here, see all the property details looks like you actually can just click a button and open up the listings. So that’s really cool. I don’t know why that

Unknown Speaker 10:00
don’t have that kind of further up on the page. But that’s really cool, you can do that. And then you can go expected monthly revenue, kind of break it all down. Again, I don’t think that this stuff is, is really all that useful to like break down your revenue per per month over the next year. That’s not super revenue, because at this point, it’s still pretty speculative, we don’t really it’s not a really detailed analysis that we’re running here. And so you’ll want to do your own more detailed analysis before getting this granular, but it is just cool features and the more they improve this and make it more accurate, the more useful it’s going to become. So again, that’s basically what I wanted to show you guys here is just this for sale properties feature. I have a lot of faith that AirDNA is going to continue to make this tool better and better and better. They’re coming out with some really really awesome improvements to the software over the last month or so here. And so I’m really excited for the direction they’re heading and making this tool even better even more useful for us as investors and property managers. If you have comments, questions, thoughts, anything you want to share, let me know in the comment section down below. As always, if you like this video and you want to see more videos like this, I post two new videos every single week on this channel. So just hit that subscribe button to stay up to date with the two new videos we post every single week here all about Airbnb property management, investing everything to do with the short term rental world. And last but not least, if you did like this video, you got value from it, you found it enjoyable or if you just want to do me a solid help me out then just click the like button down below the video as well. It really does help to grow this channel. So I really do appreciate it and it shows me as well that you actually like this kind of content so I know what kind of content to make in the future. So as always, thanks so much for watching, guys, and I’ll see you in the next video.