For Investors by Nvestors

The classic cliché about real estate investment holds true when looking for a vacation rental property: location, location, location. The profitability and income potential of your holiday rental business is highly dependent on the location where you purchase your investment property or launch your Airbnb rental arbitrage business. In addition, you need to ensure your rental is not in a region suffering from an oversupply of similar properties. So, how can you find the best locations in the United States to rent out your home short term?

 In the last several years, the rental housing market has been hit by a succession of crises that have affected the whole real estate industry. Investors' attitudes and behaviors have been influenced by a number of factors, including the COVID-19 epidemic, the hottest housing market in decades, and the recent spike in mortgage interest rates. However, the real estate market appears to be leveling out, which bodes well for anybody thinking about purchasing rental property in the future months.

 A Federal Reserve president has blamed short-term rentals for contributing to the current housing crisis.

 A DSCR loan is underwritten using property-level cash flow as opposed to personal income, unlike a consumer or owner-occupied home mortgage but similar to a commercial real estate mortgage. Debt-Service Coverage Ratio, often known as DSCR, is a metric used by lenders to assess a borrower's capacity to repay a loan based on the property's monthly rent. To calculate the DSCR divide the monthly rent by the monthly principal, interest, taxes, insurance, and association dues to arrive at the DSCR, a more straightforward way to assess cash flow (PITIA). 

Investing in Airbnb rental properties can be a lucrative addition to your real estate portfolio. With high passive income possibilities and a large market of possible renters, it appears to be a sure bet. However, with its growing popularity comes added competition. Maintaining consistent Airbnb bookings has become more challenging as more properties get added to the market.

Landlords have had a challenging year, to say the least. With layoffs and furloughs affecting huge swaths of tenants, evictions moratoriums, and rents dropping, it would seem like a good time to stay on the sidelines for the time being.