Salem, Massachusetts
Today more than one million people visit Salem annually, generating nearly $140 million in tourism spending. Not only does this location come with so much rich history, countless of movies, books, and songs but it is also a beautiful scenic place. As a Bonus you will definitely be very busy in the month of October for the spooky season and can probably up price some of your nightly stays. Salem was founded in 1626 but is best known for its events that started in 1692 when a local physician diagnosed several teenage girls as bewitched, which resulted in the hanging of 19 persons and 1 being crushed to death. This was the last time anyone was hung for witchcraft which gives it one of its spooky factors that people love so much. Because of the history this city has had it is very popular for tourist and tourist need a place to spend the night. Giving your Airbnb a theme of “vintage” or even “ghostly” could really attract some people to stay in your investment property. People no longer want to just stay in a hotel, they want an experience and Salem, Massachusetts gives you plenty to work with.
Catalina Island, California
About one million people visit Catalina Island every year, arriving via ferry boat, or helicopter. Currently Catalina Island is generating over $11 million dollars per year in tourism spending, and its not even that big of a place. The majority of the spending happens in Avalon city. The rest of the island is still wildlife allowing the animals on the island to roam free. When you think about how the little island can generate $11 million per year, its actually rather impressive. You can probably walk to one side of the island to the other in about an hours time. Let me ask you this, where else can you feel like you own your own private island? A majority of the people leave at night and there's only a few people left to party the night away so by the end of the night, not only are the beaches and town empty but you get to do whatever you want. While visiting the island you can go hiking, gambling, scuba diving, mini golfing, sun bathing, biking, and did I mention all restaurants on the island are walking distance? Possibilities are endless. I would say the most popular time for the island is on the weekends, people stay for a quick trip arrive Friday and leave Sunday. If you personally want to use your Airbnb for your own vacations it wont be as crowded during the weekdays and nights. There are a limited amount of houses that are currently on the Island so there's only three to five options for sale at a time but you would be surprised how cheap you can buy your own little slice of island life.
Big Bear, California
Approximately 6 million people visit Big Bear per year, generating $300 million in tourism spending. I would say the two biggest things about big bear are its lake and snow boarding. Big Bear gets a great amount of snow every year to allow people to enjoy a winter wonderland for the weekend. There are plenty of shops, hikes, and just beautiful scenery to enjoy but the snow is a big winner for this location. Its one of the few places that generate snow in California. If you think about it, California just receives year round sunny weather, barely any rain, same goes for Arizona and Nevada so why not go to a Big Bear for a change of weather? Some people have never seen snow and Big Bear is one of the easiest ways to be able to achieve that dream. Not only do people want to go for the snow but they also want to feel that movie like cabin in the woods feeling, get away from the world and decompress a little form there normal day to day. There are so many cabins to choose from that still have the original cabin charm to it but there is also a lot of undeveloped land to choose from as well. Some people prefer a big square footage or a clean slate to start building there own Airbnb dream home and the prices do not break the bank. Big Bear the perfect place in the West to just get away and relax to be one with nature. Have your cup of coffee on on the porch to just stare at the trees or have monopoly night with your friends and the fireplace turned on.
Gatlinburg, Tennessee
Just under 13 Million people visit Gatlinburg Tennessee for its Great Smoky Mountains National Park, generating a whopping $953 million in tourism dollars. If you are ever tired of city life then Gatlinburg will take your breath away, not only is every inch covered in trees but this location is also referred to as the little mountain town. This park is very adventures by heart, there are a few interesting spots in the park that are a once in a life time experience. For one example, there is the Gatlinburg Skybridge that stretches almost 700 feet across the valley and has parts underneath you that are crystal clear glass so that it almost feels as though you are floating. Its also great for skiing, zip lining and all sorts of outdoor activities. Aside from the national park itself, the city itself is covered in beautiful olden day architectural buildings. There is so much more to go into detail for this beautiful city such as the space needle, the aerial cable cars, amusement parks, and if you are a lover of the night sky the stars will be as bright as you have ever seen them which is one of the benefits of living around a gigantic national park. Not only is there so much to do in this little mountain town but the building regulations are much simpler in my opinion compared to other cities. Gatlinburg has plenty of properties for sale that include multiple acers. It will not be uncommon to purchase a house on a four acer plot of land. Currently Gatlinburg allows people to build a house/residence per acer. When you go and buy that four acer lot now you have the possibility to own four Airbnb rentals all ran under the same parcel.
Tusayan, Arizona
Its one of the closest cities to the Grand Canyon receiving more then 5.9 million visitors per year. There is no clear static on how much this city makes per year but the Grand Canyon does make an estimate of $904 million dollars per year. Even if the city makes a fraction of that number, its still pretty darn good. When you go and visit the Grand Canyon and witness the views for the first time with your own bare eyes it almost looks like a computer wallpaper, it does not look real. Something that is not man made and just purely what earth decided to come up with is just too much to take in. The National park itself is gigantic and Tusayan is one of the closest cities to one of the entrances. This city is also special because it has an airport! Not only can you arrive to Arizona and just quickly get to your Airbnb stay. But you can also grab helicopter tours from this exact airport. People are constantly afraid of being late for their flights or traveling too far away from a destination they are not familiar with so airport cities are always the best to invest your Airbnb in. When people stay in Tusayan the only thing they’re really looking to do is visit the Grand Canyon so there's not to many other attractions and the city itself is just one big hotel stay for this main purpose. There are plenty of other entrances to go and arrive in the Grand Canyon but I especially picked this one for the airport reason! Remember its a simple town but its right next door to a $904 million dollar jackpot.
Now that you have seen these Top 5 places to potentially invest your money for your Airbnb business, let me go more into detail as to why I chose these places. The main reason is that the price tag of entry. Buying a property in these cities is still relatively cheap compared to other popular Airbnb destinations. Take Los Angeles for example, you would have to spend close to a million dollars for a property and if you are barely beginning your journey as a Airbnb business owner this could be very risky and very stressful. Lets say you buy that million dollar home in Los Angeles and your mortgage is now $5,000 a month and you can get $300 a night at 25 nights per month that only totals to $7,500 a month which means after the mortgage and costs to run the Airbnb your going to be left with about $2,000 a month.
Now don’t get me wrong, $2,000 a month is nothing to laugh at but you can get that with much less invested. You don’t need to buy a million dollar property in order to make $2,000. Lets talk about Catalina Island as an example, currently there are homes selling at $600,000 which makes the mortgage $3,800. At he same numbers of $300 per night at 25 nights per month that comes out to a total of $3,500 of profit per month already beating the $2,000 while also saving you $400,000 from having to be invested. The best part is that Gatlinburg, Tusayan, Salem and Big Bear are even cheaper than $600,000.
The average Big Bear home is about $350,000, Salem is $500,000, and Gatlinburg has enormous houses for sale in the $300,000 range. We have already talked about how many people go and visit these places and how much money each city generates in tourism dollars and now the most important part is that your barrier of entry is low as well! Sure New York, Seattle and Florida would all be great amazing places to have an Airbnb in but unless you have other reasons to invest there; the amount of payout you get for the amount you have invested does not compare. This is why I hope this article has helped you see that there are other cities to have an Airbnb that won’t break the bank and still bring in plenty of revenue! Good luck out there.
