Investing in Airbnb Sisters Oregon in 2022 seems like a good prospect. What does the data actually say?
There are many ways of making money in real estate. One of the most popular ones is investing in short-term rentals, also commonly referred to as Airbnbs. In light of recent developments in the real estate market, such as the effects of the COVID-19 pandemic, investors may hold back from putting their hard-earned money and savings into real estate.
However, the real estate industry was, interestingly, one of the industries that seemed to remain steadfast, despite other industries being brought to their knees. Home prices continued to rise, as some markets hit all-time highs.
This bubble is not about to burst. What does this mean for real estate investors?
You should constantly be on the lookout for information and tips to help you in your investment. If you’re interested in investing in Airbnb Sisters Oregon in 2022, this comprehensive guide is for you.
But first, let’s start by looking at the current state of the larger Oregon housing market.
Why Invest in the Oregon Housing Market
Oregon is a prime market, especially for investors looking for single-family homes. Over the past year, the housing market experienced changes and shifts that were quite different compared to other markets in the US.
The Oregon real estate market experienced an increase in housing prices in 2021. However, this increase was lower than the national average. This means that, although the prices were going up, properties still remained affordable.
This growth was mainly notable in areas that were previously not regarded as hot markets. It was mainly recorded in suburban and rural markets that are away from the metropolitan area. This can be attributed to the demand for rural secondary homes that was brought along by the pandemic.
Though at a slower pace, the demand for Oregon investment properties in rural areas is set to continue rising this year.
Here are some crucial data from Mashvisor to help us understand the Oregon housing market better:
- Median Property Price: $719,422
- Average Price per Square Foot: $367
- Monthly Traditional Rental Income: $1,678
- Traditional Cash on Cash Return: 0.98%
- Monthly Airbnb Rental Income: $3,181
- Airbnb Cash on Cash Return: 2.31%
- Airbnb Daily Rate: $244
- Airbnb Occupancy Rate: 50%
- Days on Market: 127
- Walk Score: 74
Related: Oregon Housing Market Forecast 2022—Should You Invest?
As you can see from the data above, investing in Airbnb in Oregon state is more profitable compared to owning a traditional rental. The Airbnb cash on cash return is higher than the traditional cash on cash return. Similarly, the Airbnb monthly income is higher than that for a traditional rental.
Most notably, the Airbnb occupancy rate is higher than average. This is an indicator that your Airbnb rental in Oregon will stay occupied for the most part of the year.
Why Invest in Airbnb Sisters Oregon
If you’ve never been to a small town referred to as a gem, then you need to visit Sisters, Oregon. Let’s look at some of the statistics that reflect the state of the Sisters real estate market.
In January 2022, property prices in Sisters were up by 45.3% compared to last year. And as of February 2022, the median selling price was $719,422. The average price per square foot was $367.
The sale-to-list price ratio in Sisters Oregon is 100%, meaning that properties sell for approximately the asking price. The Sisters real estate market is also regarded as a balanced market since the demand and supply of properties are almost the same.
On average, properties in the Sisters housing market sell after about 74 days on the market, up from 36 days last year.
Currently, there are 20 homes for sale in Sisters Oregon on the Mashvisor platform. The properties range from $349,900 to $2,150,000. This is a sign that you can invest in this housing market even when you don’t have a lot of capital.
What Brings Visitors to Oregon?
Visitors and travelers assure you of a consistent flow of guests in your short-term rental. As such, it’s important to start your Airbnb business in a tourism hub. You can also set up your Airbnb in economic towns or near educational institutions so that you can target traveling business people and students.
Related: How to Find the Best Area for Airbnb Investment
Luckily, Sisters Oregon isn’t short of tourism attractions. For starters, the town has a major outdoors appeal with its sunny and calm weather. It’s surrounded by some of the most beautiful nature and photogenic scenery.
Despite its small population, there are plenty of activities and attractions to keep your Airbnb guests entertained. Let’s break them down:
Hiking and Rock Climbing
Outdoors are the biggest attraction in Sisters Oregon. The Cascade Mountains has some of the best hiking trails, inviting you to explore the Western part of the city and marvel over the high-desert landscape background on the Eastern horizon.
If your Airbnb guests are ski lovers, Sisters Oregon will fulfill their desires. The Hoodoo Ski Area is one of the best ski resorts in Oregon. It is composed of about 800 acres of various terrains, with an average of 450 inches of snow every year. You can also enjoy other snowbound activities, such as Nordic skiing and tubing.
The Smith Rock State Park is one of the premier rock-climbing destinations in the US. It’s located less than 30 miles from Sisters. Professional as well as amateur rock climbers from all over the world flock to this destination for year-long sport and traditional activities. Safety is one of the main concerns of this sport. For beginners, there are several local guides who instruct and help newbies. As tourists take on the challenge, they’ll come across hikers, horse riders, and mountain bikers.
Iconic Waterfalls and Nature Trails
Oregon features some of the world’s best waterfalls. Luckily, some of them are located just a short and scenic drive from Sisters. The McKenzie River National Recreation Trail gives you an opportunity to enjoy the Sahalie & Koosah Falls. Both of these waterfalls are in the Willamette National Forest.
The Proxy Falls is another scenic waterfall that is accessible through a short drive on the McKenzie Highway. While the route is inaccessible during the winter season, it’ll lead visitors to a stunning waterfall during the summer. The cascading waterfall is within the Three Sisters Wilderness.
In the Deschutes National Forest, your guests will find the Tumalo Falls. It’s located approximately an hour’s drive from Sisters.
For most visitors, a trip is never complete without sampling the local cuisine and dining scene. For those who want to experience the real taste of Sisters, there are several eateries and food outlets all within a walking distance.
Sisters city takes pride in the breakfast and coffee specialties. Your guests can visit places like Sisters Coffee Company and Sisters Bakery in the morning to sample their beverages and pastries. During the day, they can visit Angeline’s Bakery and The Cottonwood Cafe.
For lunch and mid-afternoon snacks, they could check out the Sisters Meat and Smokehouse. This eatery features fresh-cut sandwiches and an adequate deli selection. The eatery also has a cool and trendy place for your guests to sit down.
If your guests look forward to experiencing Sisters’ night scene, restaurants like Chops Bistro and Rancho Viejo are places worth considering. They can visit these places by themselves or with a date. Also, reservations are not a common thing in Sisters, so you could recommend your guests to explore the area and let their senses guide them.
Events and Festivals
Most visitors also look forward to enjoying the community experience in any city. Sisters is famed for its never-ending celebratory mood. Once the winter ends, festivals and events fill out the weekend calendar throughout the year. These events make a visit to Sisters more worth it and memorable.
One fun event not to miss in this city is the Sisters Rodeo and Parade, which always happens on the second weekend of June. Sisters Outdoor Quilt show is another special one-of-its-kind event, where over 1,300 decorative handmade quilts are displayed. It always takes place on the second weekend of July.
Other events include antique car shows, Wild West culture, square dancing, and Hawaiian Cuisine.
These tourism activities and attractions show that you can remain assured that your Airbnb Sisters Oregon will receive a constant flow of guests throughout the year.
Airbnb Sisters Oregon Ordinances
The city of Sisters describes a short-term rental as a residential dwelling unit, or a habitable section of the dwelling unit, occupied by a person or group of people for rent for a period of less than 30 consecutive days. A short-term rental is also a vacation rental approved under city regulations. Short-term rentals don’t include commercial properties, such as hotels and motels.
All existing and new short-term rental owners must obtain a short-term rental operating license for each vacation rental property they own. This is a type of business license. The business license costs $105 quarterly, plus a supplemental fee of $100 per unit.
The license is renewed annually by submitting a complete renewal application and paying the fees.
All Airbnb Sisters Oregon owners must collect and remit Transient Room Tax. This tax is the primary proof of use.
To maintain your short-term rental permit and operating license in Sisters, you must adhere to the following:
- Obtain and renew the operating license annually within the required period.
- List the property as a short-term rental at least once every 12 months. This is verified annually as you provide proof of use (payment of Transient Room Tax) while renewing your operating license.
- Pay applicable Transient Room Tax.
How to Invest in Airbnb Sisters Oregon in 2022
If you’re already convinced that investing in Airbnb Sisters Oregon is a lucrative opportunity this year, you should be careful in your home buying process. While it’s not that complicated, you need to carry out your due diligence to maximize the return on investment potential. Here are some tips to get you going:
Related: How to Evaluate an Airbnb Investment
Work With a Budget
Setting up the financial aspect of your investment is one of the most important steps. You don’t want to pay a high price for a property that leaves you with no option but to take a similarly high mortgage or charge an unrealistic nightly rate. The amount you pay for your property will determine whether you can generate a positive cash flow.
Setting a budget helps you invest in a property within your ability and avoid the risk of defaulting on a mortgage. Set a realistic budget and stick to it. Here’s what you need to include in your budget:
- Buying Price – How much do you want to spend on acquiring the property?
- Closing Costs – Include the fees associated with closing the deal (usually 2% of the buying price).
- Repairs – Some properties you buy may need a few repairs to match market standards. Have a budget for repairs and remodeling to make the property more appealing.
- Licenses and permits– We’ve already seen that you need a license to operate an Airbnb business in Sisters Oregon. Add these fees to your budget.
- Miscellaneous– Set aside some cash for the property management agency and other unforeseen expenses that may arise.
This process may seem a bit tedious especially if you’re a beginner. However, Mashvisor’s Airbnb Calculator will help look at the financial aspect of your Airbnb investment property to avoid any surprises. This tool uses the latest Airbnb market data and trends to help you when conducting Airbnb analysis.
Do an Efficient Property Search
Before searching for the property, you need to establish the property type you desire to buy. This will be influenced by your location and the kind of guests you want to host. If you’re located in the city, you can buy a condo or studio apartment, while if you’re in a rural area, it’s better to purchase a single-family home.
If you’re targeting families and large traveling groups, they’re more likely to stay in a property with a number of bedrooms. Couples and solo travelers will book a studio apartment or a one-bedroom Airbnb.
If you’re still not sure of the property type, use Mashvisor Neighborhood Analytics to figure out the most ideal property type and the number of bedrooms for your location.
After that, you can start the actual search. This is where Mashvisor Property Finder comes in handy. This tool will help you find Sisters investment properties and also narrow down your search using the following metrics such as property type, budget, cash on cash return, cap rate, rental strategy, and location.
Mashvisor not only teaches you how to invest in real estate, but it also has tools that use AI and machine learning algorithms to help you find properties that match your criteria.
By this stage, you’ve already seen the potential investing in Airbnb Sisters Oregon has. This investment will help you generate passive income and achieve your investment goals. However, you shouldn’t just invest blindly.
Mashvisor tools are here to help you make smart investment decisions and avoid making grave business mistakes. Schedule a demo here to learn more about what our tools can do for your business.