Show Notes
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!
In This Episode We Cover
Real properties with real numbers from Tony and Ashley's portfolios
Why measuring your cash-on-cash return is crucial when comparing these strategies
How much time it actually takes to manage a long-term or short-term rental
The biggest risks to consider before committing to either strategy
How to potentially slash your tax bill by thousands with the short-term rental loophole
And So Much More!
Check out more resources from this show on BiggerPockets.com and https://www.biggerpockets.com/blog/rookie-744.
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