![]() ![]() Is this building part of a larger project? If it is part of a larger project, is the larger project not working? I would be more interested in the surrounding neighborhood than 5 – 10 minutes from major attractions. Then I wonder if these units were rented as apartments if those rents would support the returns on the project. ![]() I would ask a local commercial banker if they finance a six-unit apartment project the same way they would finance an Airbnb. When an investor changes course so early in the life of a project, is it a red flag event? Why sell a new cash-flowing project now? Also, they base the projections on a 35 percent down payment.Here are some questions to consider as you perform due diligence on the offering: Bed and breakfast operators have been around for many years, Airbnb’s reservation system organized them under one banner. Monty’s Answer: While there are differences in operating an Airbnb instead of apartments, I see Airbnb as a different operating model rather than a new category. What is your opinion about Airbnb projects as an investment? There are numerous significant attractions within 5-10 minutes by car, but Airbnb is a new category. ![]() The six units generate an eight-percent cap rate. We have invested in other commercial property types, but this would be our first bed and breakfast. Reader Question: We are a four-person group wanting your opinion on topics to consider when buying an Airbnb investment. ![]()
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