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Apartments VS Houses, Which one is best for Airbnb?

airbnb arbitrage short term rental Oct 12, 2023
House and apartment

Are you considering starting your Airbnb business but finding yourself stuck at the very first question, houses or apartments? 


It's a crucial decision that can significantly impact your Airbnb income.


In this blog, we'll dive deep into this dilemma, drawing from personal insights and experiences to help you make an informed choice.


The Case for Houses

Let's begin with houses. 


Generally, houses have the potential to generate higher revenue, making them an attractive option for many hosts. 


However, before you rush to buy that suburban dream home, consider the associated costs. Houses often come with higher rent, utility bills, and operational expenses. 


Furnishing a house can also be a hefty investment, typically costing twice as much as an apartment.


On the bright side, houses are relatively easier to acquire. 


Many are owned by small-scale investors who are open to collaborating with fellow entrepreneurs. 


Building relationships within this market segment can prove fruitful.


The Apartment Advantage

Now, let's talk about apartments. Personally, I'm a big fan of apartment rentals because they offer significant scalability. 


In a well-chosen building, you might secure up to 30 units within three months. 


Apartments also boast lower furnishing and operational costs on a per-unit basis, making them financially appealing.


However, it's not all smooth sailing with apartments. 


Acquiring them can be more challenging due to increased competition and dealing with national property managers. 

The Verdict


So, what's the bottom line? Here's my recommendation:


  1. If you plan to operate five or fewer properties, generating around $100,000 in annual cash flow, houses are a solid choice. 


They provide a sturdy foundation for starting and growing your Airbnb business while keeping operations manageable.


  1. However, if your ambition is to build a thriving business and achieve seven-figure annual earnings, like I have, then apartments should be your focus. 


While it might require more time and effort to get started, the scalability of apartments offers a superior long-term business model.


In the world of Airbnb, success is achievable with either houses or apartments. 


What matters most is your personal goals and aspirations. Building a profitable Airbnb business requires patience, perseverance, and a clear vision of where you want to go. 


Whichever path you choose, I encourage you to do thorough research to determine what's best for you.


Remember, your Airbnb journey is unique, and the right property choice can set you on the path to success. 


So, go ahead, explore your options, and embark on this exciting venture with confidence!



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