JoshB29 / Airbnb-Apartment-pricepoint-analysis

Is it worth it to buy an apartment to Airbnb it out

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Airbnb-Apartment-analysis

Overview

This analysis was performed for a real estate investor to see whether a 5 bedroom apartment (with an asking price of ~$4 million) could be recouped using airbnb rentals. The investor wanted to know whether, if they bought the apartment for $4 million, at what price would the apartment have to be rented out to pay for the morgage. Assuming a 10-year morgage, this corresponds to a monthly morgage of about $33,000 dollars (4,000,000/(12*10)). This excludes, interest of course.

Data Scources

Listing for New York City were download from the insideAirbnb database (http://insideairbnb.com/) for listing as of May 2017.

Methodology

I calculated the mean nightly rate for apartments in Mnahattan for Manhattan and Brooklyn for apartments/home with 3 or more bedrooms. The final calculations are shown in the final report included in this repository.

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Is it worth it to buy an apartment to Airbnb it out


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