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Sara the Nurse

Airbnb or Rental

Post-Grad Home Purchase

BJ Grayson, Melat Demeke, Nima Taghizadegan

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12,761,421

This number is the potential monthly earnings for all 2 bedroom listings in Austin, TX

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Conclusions

Analytical Insights

Introduction

TABLE OF CONTENTS

01

02

03

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Introductions

01

Context, Legal and Data Sources

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Context

  • Nurse attending school in Dallas

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  • Inheritance: $85k

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  • Invest in Short-term or Long-term rental?

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Image source

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Our work

Assess:

  • Neighborhoods
  • Price
  • Minimum Occupancy

Determine:

  • How these factors affect the daily price of the rental
  • Explore Maximum Return
  • Compare to long-term return

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Legal Considerations

  • STR Required by Airbnb
  • STR = Short Term Rental License
  • Granted by City of Austin
  • Not owner occupied license = Type 2 license
  • License must be obtained annually
  • Cost is $864 to apply for license

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DATA - Short-term Rental: Inside Airbnb

  • 14,861 Airbnb listings

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  • 3443 2-bedroom listings

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  • Avg price of all listings: $269

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  • Avg price for 2-bedroom: $219

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Assumptions on the dataset: Here

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DATA - Long-term Rental: Zillow

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  • $1950 per Month for 2 bedroom

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  • Rental prices are falling

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Analytical Insights

02

Data, Data, and more Data!

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All 2 bedroom listings in Austin, TX

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Average Price per Neighborhood

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Average Price per Neighborhood

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Initial Observations

Price per Neighborhood (Downtown)

Best neighborhoods identified:

  • 78701: Central Austin near downtown

at $334.54/night

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  • 78702: East Austin near downtown

at $235.23/night

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  • 78704: South of Downtown Austin

at $248.83/night

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Average Price per Neighborhood

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Optimized Observation:

Price per Neighborhood (non-downtown)

Best non-downtown neighborhood:

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  • 78723: Windsor Park

at $180.15/night

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Occupancy Rates for all 2 bedrooms

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Occupancy Rates for Windsor Park

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Conclusions

03

Our Recommendation and Next Steps

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Primary Recommendation

Beautiful Windsor Park

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2 bedrooms 3 bathrooms

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All appliances included

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6211 Manor Rd APT 129 Austin, TX 78723

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The Details

  • Mortgage: $265,000 or $1897 per month
  • Includes:
    • HOA fees
    • Property tax
    • Insurance
  • Cleaning costs: $100 per cleaning

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  • Airbnb STR license: $864 annually

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$180/night

2 night min

-$100 cleaning fee per stay

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2080

2600

minimum Potential monthly earning for Sara’s 2 bedroom listing in Austin, TX

average Potential monthly earning for Sara’s 2 bedroom listing in Austin, TX

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Priceless.

With our recommendation, you don’t have to worry about your mortgage while studying

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References

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THANKS

Do you have any questions?

​

fakeemail@fakedataco.com

+1 555-555-5555

fakedataco.com

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