Daydreaming about buying an Airbnb investment that becomes a cash flow machine so that you can play more weekday golf? Me too.
So I hit up our city’s biggest Airbnb nerd, Emir Dukic, CEO of Rabbu, the ‘Zillow for Airbnb investment properties.’
Hot right now: “The best Airbnbs are in locations people want to visit (for N.C. think the mountains, lakes, beaches, and fun cities like Asheville) coupled with features and amenities that photograph well (think Instagram-worthy),” explained Emir. “You can go over the top with amenities like a pickleball court, putting green, or a hot tub, but often fun decor and furnishings – like a tasteful mural wall – will do.”
Example: When I asked Emir for an example of a great investment and he pointed out 133 Last Resort in Black Mountain, NC. His friends at Savvy Real Estate in Asheville did the deal.
Deal breakdown:
- Purchased for $625K in June of 2023.
- Invested $450K in renovation and design.
- Went live in April 2024 on Airbnb.
- After 1 month on Airbnb, they generated over $135K in bookings and are on pace for $300K in revenue for the year.
- Property re-appraised for $1.375M.
Hot right now: 3 interesting North Carolina Airbnb investment properties on the market right now, according to Emir.
Lingo note: “Gross yield” is the annual revenue divided by purchase price. The rule of thumb is that anything >10% Gross Yield has a good shot at cash flowing. If you get into the 15%+ range then you are looking at an attractive ROI on your investment.
(1) TBD Rocky Mountain Rd in Boone, NC
- Price: $355K
- Projected revenue: $63K
- Gross yield: 17.7%
- Emir’s take: “Despite the devastation left by Helene, I’m still very bullish on the NC Mountains for STRs. Anything in the stretch between Asheville and Boone will remain popular. I love this opportunity because the home instantly grabs your attention with its unique architecture and design. It’s in Boone so you’ll have year-round demand between people visiting for fun or to attend an event at App State.”
(2) 119 Upper Grassy Br Rd in Asheville, NC
- Price – $705K
- Projected Revenue – $108K
- Gross Yield – 15.3%
- Emir’s take: “It’s almost impossible to meet a Charlottean (or North Carolinian, for that matter) that doesn’t love visiting Asheville. Asheville is one of the few cities in NC that has strict regulations against short-term rental, so finding a property in the area that allows them is rare. This property has been an active Airbnb and with some investment into the furnishings, design, and amenities, it could thrive.”
(3) 101 Trinitie Dr in Kitty Hawk, NC
- Price: $1.4M
- Projected Revenue: $211K
- Gross yield: 15.1%
- Emir’s take: “This property checks off all the boxes that you want for an uber-successful Airbnb. It’s within a stones throw of the water yet still has a pool and hot tub. It has 6 bedrooms so can accommodate large groups of people and was recently renovated. While the $1.4M price point is not for everyone, the potential for >$200K of booking revenue certainly is alluring. Just make sure to get a good property manager which can be harder to find at beach locations.”
Advice for first-time buyers: “Buying a property, putting in Ikea or Facebook marketplace furniture and setting a flat nightly price doesn’t work,” Emir shared. “Short-term rentals can still be extremely profitable but supply has grown over the last few years. There is more competition. To be successful you need a team to help buy the property (agent, lender and data tool like Rabbu), get it ready for guests (interior designer, handyman) and operate the property (clean, communicate with guests, update prices daily, maintain the property).”
Emir’s 15 biggest observations on short-term rental investing in 2024:
(1) Rising interest rates have slowed down new acquisitions, pushing investors to focus on maximizing returns from existing properties.
(2) Cash flow is now more critical with many investors prioritizing steady income over property appreciation.
(3) Tech-driven property management is essential, with automation tools for pricing, guest communication, and turnover becoming standard.
(4) Remote investing is rising as more investors manage properties in distant markets using technology and local teams.
(5) Regulations around short-term rentals are getting tighter. However this is a positive as long as they don’t overstep. This allows the asset class to become more professionalized and creates industry sophistication.
(6) Big markets are experiencing more compression on their returns. leading investors to explore secondary markets where peaceful getaways draw more travelers.
(7) Niche properties like eco-friendly, pet-friendly, or themed stays stand out, catering to guests seeking unique experiences.
(8) Traditional lenders are getting stricter about financing short-term rentals forcing borrowers to work with STR focused DSCR lenders (they can be found on Rabbu.com).
(9) Direct booking platforms are gaining traction, potentially allowing hosts to reduce dependence on Airbnb and vrbo. But beware, the grass isn’t always greener. There are some inherent risks involved with this strategy.
(10) Mid-term rentals (30–90 day stays) are gaining popularity as they offer a balance between short-term profits and long-term stability, appealing to traveling professionals and digital nomads.
(11) This shift from short-term to mid-term rentals is creating a hybrid model where investors can tap into both markets depending on the season or demand.
(12) Demand for sustainable properties is growing, with investors retrofitting rentals to appeal to eco-conscious travelers.
(13) Professional management companies are now targeting smaller investors, offering full-service solutions for those avoiding day-to-day operations.
(14) Travel influencers are helping rental owners market their properties, especially those with unique features or special experiences.
(15) Furnishing a property to stand out is more important than ever with guests prioritizing aesthetics and amenities when choosing where to stay.
New to Tiny Money? Join 4,989 Charlotte execs and subscribe to my 1x/wk newsletter.
