Investing in real estate, like any other investment, comes with its fair share of rewards and risks. A real estate investment’s success usually depends on its location. And while sunny Florida is one of the top states to purchase property for investments, should an investor consider investing in Airbnb in Sebring FL? Read on to find out.
Investing in Airbnb in Sebring FL: What Real Estate Investors Should Know
Folks looking at investing in Airbnb in Sebring FL – or any place for that matter – should always put in the hours and do their homework. A successful short-term rental business venture requires more than just enough money to purchase a property in a location that regularly gets an influx of tourists. That’s just a small part of it.
If you’re seriously considering going into real estate investing for vacation rentals, you need to gather as much information about the market you’re looking into. Sure, you need to find out if the area offers enough touristy activities and attractions in a year to keep your property booked most of the time. You also need to find out essential real estate market information to ensure you’re getting enough bang for your buck.
In the past, it usually took weeks and months to gather information about a certain property, but thanks to modern technology, it only takes a few minutes now. An online real estate marketplace platform like Mashvisor makes information gathering and data analysis a breeze. With its different real estate tools and updated data, investors can now make wiser decisions in a lesser amount of time than it used to take.
Its Airbnb calculator, in particular, is a big help for investors who want to invest in vacation rental properties. Mashvisor’s users take advantage of the tool to help them locate the most profitable properties that line up with their investment goals. It also gives them the necessary data to analyze how much profit they can make on it. It becomes a game-changer in the real estate industry, making out-of-state investments a lot quicker and safer for everyone involved in the process.
Related: Where Should You Invest in Airbnb Rentals in Florida?
Sebring, Florida: The City on the Circle
Sebring is located in Highlands County in the heart of the Sunshine State. Also known as The City on the Circle due to its historic downtown district’s design, Sebring offers plenty of things to tourists and visitors, and even in-migrants.
It may be a small city – with a population of about 10,500 residents – located in an underdeveloped part of Florida, but that doesn’t necessarily mean it’s a bad thing for the locals and real estate investors. On the contrary, people who want to get away from the hustle and bustle of everyday life and avoid the large city crowds typically associated with Florida’s more touristy and commercial attractions will fit right in. If you’re visiting Fort Myers, Fort Pierce, Orlando, or Tampa, you can swing by Sebring and stay for a few days because it is less than a hundred miles away from the said cities.
The Different Sights and Sounds of The City on the Circle
Although Sebring is not like the other bigger and more crowded Florida tourist spots, it is equally wonderful and inviting. The following are some of the things that make investing in Airbnb in Sebring FL worth it:
1. Sebring International Raceway
If there’s one thing Sebring is truly known for, it is the Sebring International Raceway. Daytona isn’t the only Florida hot spot to host NASCAR. Sebring’s own race track is quite different and very distinguishable from Daytona, especially with its tight turns and challenging switchbacks. It began operating in the 1950s, which makes it one of the oldest race tracks in the US.
2. LEGOLAND Florida Resort
LEGOLAND Florida Resort is one of the biggest attractions near Sebring. The theme park is located in Winter Haven, about 38 miles from Sebring. Visitors can easily visit LEGOLAND by taking a taxi or a rental car or going on one of two daily Amtrak trips to Winter Haven.
3. Fantasy of Flight
Military and aviation buffs will go crazy when they visit Polk City’s Fantasy of Flight. It is home to a massive collection of outstanding restored warplanes from pre-WWI, WWII, the Vietnam War, and the present. The site even houses more functional military aircraft in its fleet compared to other countries’ air forces.
4. Value Golf Capital of America
The City on the Circle is somehow considered a hidden gem in the Florida golfing scene. It is, after all, known as the Value Golf Capital of America. Golfers and enthusiasts can choose among several excellent courses, including Golf Hammock Country Club, Harder Hall Country Club, Sun ‘N Lake Golf Club, and River Greens Golf Course.
5. Freshwater Lakes
Sebring offers a few freshwater lakes that are perfect for watersports and lakeside activities. You can spend some time fishing on Lake Huntley or Lake Istokpoga. You can also enjoy a quiet meal in restaurants that offer a great view of one of the lakes, such as Island View Lakefront Restaurant and Pub or Chicane’s at the famous Inn on the Lake.
6. Museums and Parks
Sebring is not only known for its race track, golf courses, and lakes. It is also home to some of the finest museums and parks in Florida. The Avon Park Depot Museum lets visitors gather a unique insight into the city’s past, while the Highlands Museum of the Arts showcases some of the region’s best artwork and art history.
Several parks can also be found in Sebring, including Highlands Hammock State Park (Florida’s first-ever state park), Kissimmee Prairie Preserve State Park, and Avon Park, among others.
7. Spook Hill
For those who are a bit more adventurous and are looking for a supernatural experience, Spook Hill can provide hours of hair-raising and spine-tingling adventures. Located near Lake Wales, many believe the area to be haunted. An epic battle between spirits supposedly took place on the hill, which somehow gave the place certain abilities to bend the laws of physics, where things seem to levitate and cars roll uphill.
Related: How to Estimate Airbnb Income Before Buying a Rental Property
Is Sebring, FL a Good Location for an Airbnb Investment?
Making money in real estate investing requires a good understanding of the market and a well-crafted strategy based on the market data. While the Florida real estate market is generally a healthy one, each location has its own strengths and weaknesses that every investor should consider, especially if you’re looking at vacation home rentals in Florida. The main question that needs to be answered now is how stable is the Sebring real estate market? Is it strong enough to generate a positive cash flow and good return on investment for an investor?
Using Mashvisor’s most recent data, Airbnb in Sebring FL shows a pretty decent performance. Let’s take a look at each of the details below and how they fare against the data from December 2021.
January 2022: $299,619
December 2021: $320,806
In just a month, median property prices significantly decreased by a little over $20,000. Several factors influence the change in data, but the general trend for real estate properties is they appreciate over time. Investors can take advantage of this downward trend to purchase a suitable property to convert into a vacation rental.
Average Price per Square Foot
January 2022: $172 per sq. ft.
December 2021: $181 per sq. ft.
One of the reasons why the median price decreased over the past month is the decrease in the price per square foot of a property. And because real estate properties tend to appreciate over time, as previously stated, the price per square foot will also gradually increase regularly. It means now is a great time for investors to purchase property at lower prices.
Days on Market (DOM)
January 2022: 55 days
December 2021: 49 days
The higher the Days on Market figure, the more of a buyer’s market it becomes. The slight increase in average DOM indicates that the market is slightly weaker now than in December. It signifies that it is a good time to start thinking of buying property for Airbnb in Sebring FL.
January 2022: 91 listings
December 2021: 75 listings
With the relaxation of travel restrictions in the past year, Airbnb demand is finally showing some growth. Airbnb in Sebring FL, and the Florida housing market in general, is gradually regaining the momentum they lost, showing how much difference a month can make.
Daily Airbnb Rental Income
January 2022: $158
December 2021: $162
Despite the increase in demand for Airbnb in Sebring, the daily rental rate is going down a bit due to several factors. Prices tend to go up during peak season when local tourism is at its busiest and most profitable. In the same breath, prices also tend to go down during off-peak seasons to help owners and hosts get bookings. Sometimes, hosts set custom prices for certain periods. And then, there are times when prices are driven by the law of supply and demand.
Airbnb Occupancy Rate
January 2022: 49.45%
December 2021: 44.23%
The occupancy rate for Airbnb in Sebring FL slightly increased in the past month. As travel restrictions continue to ease and with the busiest months of the year in Sebring coming up, expect the occupancy rate to continue to go up over the next few months.
Monthly Airbnb Rental Income
January 2022: $1,653
December 2021: $1,272
Despite the slight reduction in daily rental rates, Airbnb rental income went up significantly in just four weeks. Perhaps it’s because Thanksgiving all the way to mid-April are some of the best months to visit the city. Regardless, a monthly rental income range of $1,200 to $1,600 isn’t bad at all.
Airbnb Cash on Cash Return
January 2022: 3.28%
December 2022: 1.8%
One of the most important metrics real estate investors should check to see is the cash on cash return. While most experts and industry insiders agree that good cash on cash return is between 8% and 12%, many of them are also on the same page that properties that yield those numbers are hard to come by. A 3% return is already considered a decent number by many experts and investors, so the jump from 1.8% to 3.28% in just one month is a very good indicator for the year 2022.
Related: What Is a Good Cash on Cash Return?
January 2022: 69
December 2021: 69
The walk score for Sebring remains at 69. According to Redfin, a score ranging from 50 to 69 means a city is somewhat walkable in that certain errands can be done on foot while others require a car to accomplish.
The numbers show that investing in Airbnb in Sebring FL might be a good short-term rental strategy. If you’re an out-of-town investor, it is recommended that you look for a reputable property management team to keep your Airbnb income property running smoothly. As long as you’re able to keep the place booked for the most part, it will be a nice addition to your real estate portfolio.
On top of all the numbers that seem to justify investing in Sebring, what are some other reasons why investors should consider investing in this part of the Sunshine State?
What’s the Verdict? Is Sebring FL a Good Place for Airbnb Investment?
The updated and accurate data provided by Mashvisor all indicate that investing in Airbnb in Sebring can be profitable, especially if you come up with the right strategy. All the different tourist attractions and unique experiences offered by the city are expected to constantly bring in tourists from all over the country.
At the end of the day, the choice will still be yours to make. If the numbers and all the information you gather line up with your investment goals, then Sebring FL is a great place to start. As long as you’ve performed your due diligence and covered all your bases, it won’t be difficult to make the wisest investment decisions.
If you are considering investing in real estate, then investing in a property for Airbnb in Sebring FL might be right up your alley. Just remember to put in the work and gather as much information as you can about the local market before you take the dive. Check out Mashvisor and see for yourself how countless investors are making the wisest investing decisions by utilizing the site’s up-to-date and accurate data along with its Airbnb calculator and other tools.
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