Airbnb vs. Long-Term Rental: Which Makes More Money?

When buying your first rental property, everyone gives you the same advice: play it safe, get a long-term tenant, and collect the rent. But that same house, run as an Airbnb, can often make two or three times the cash flow. So which investing strategy should you actually use for your first deal?

Welcome back to the Real Estate Rookie podcast! Today, we’re settling this debate once and for all: short-term rentals or long-term rentals? We both grabbed a real, middle-of-the-road property from our own portfolios, put them head to head, and broke down the three things that actually matter for rookie investors: the money, the workload, and the risk.

Ashley’s long-term rental might have the edge when it comes to ease of management, but Tony's short-term rental tax loophole gives certain investors a way to (legally) slash their tax bills by thousands. There is no one-size-fits-all answer here. But by the end of this episode, you'll know exactly which strategy fits your investing goals!

Find Investor-Friendly Lenders:
http://biggerpockets.com/findlenders

Tony:
https://www.biggerpockets.com/users/tonyr75?utm_source=youtube&utm_medium=description&utm_campaign=none

00:00 Intro
01:03 Short-Term vs. Long-Term Rentals
05:14 Comparing the Numbers
12:33 Running Each Property
22:46 Weighing the Risks Involved
29:05 MASSIVE Tax Benefits
35:02 Which Strategy Is Right for YOU?