A business model where individuals rent properties on long-term leases and then sublet them on short-term rental platforms like Airbnb and VRBO for a profit.
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Glossary Term: Real Estate Investing
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Identifying properties with potential for profit by leasing them long-term and subletting them as short-term rentals on platforms like Airbnb and VRBO.
A strategy where hosts purchase or rent properties in areas with lower property prices but high short-term rental demand, aiming to maximize profits.
Earnings generated from a short-term rental property with minimal effort or active involvement from the host, typically through automated systems and outsourced management.
Earnings generated from a short-term rental property with minimal effort or time investment from the owner, often achieved through property management services.
Purchasing and operating short-term rental properties in locations different from the investor’s primary residence.
A metric used by investors to assess the potential profitability of a short-term rental property, calculated by dividing the projected annual rental income by the monthly mortgage payment.
Real estate purchased with the primary intention of generating income, such as through renting on platforms like Airbnb and VRBO, rather than for personal use.
Real estate purchased or utilized specifically for the purpose of generating rental income, including short-term rentals listed on platforms like Airbnb and VRBO.
Specialized financial advice tailored to short-term rental owners and investors, focusing on areas like tax optimization, revenue management, and investment strategies.
Online platforms where individuals can raise funds from multiple contributors, potentially used for financing short-term rental property purchases or renovations.
A financial metric used to evaluate the profitability of a rental property, calculated as the annual pre-tax cash flow divided by the total cash invested.