Tim Hubbard: How to Invest in Airbnbs with Confidence | AirDNA

What if you could work just 27.5 hours per month?

That’s reality for Tim Hubbard, founder and owner of vacation rental company Midtown Stays

Along the way, Tim’s dabbled in long-term rentals, multi-family units, and more—all of which have contributed to his personal investment philosophy. He recently joined our STR Data Lab podcast to discuss his tips and tricks for investing in Airbnbs with confidence (which you can apply to your own business ASAP).

#1 - Build a backup plan 

Vacation rentals—like any real estate investment—come with risks, but that doesn’t mean you can’t mitigate those risks. It’s important to identify your biggest potential pitfalls and come up with a plan B, Tim says. Even if things initially don’t go as expected, you still need to generate cash.

“I have a backup plan for most properties that I invest in, and that is to put a long-term tenant in there,” Tim says. 

This is a tentpole of Tim’s investment strategy. He invests not only in properties that make good STRs, but that could also meet the needs of longer-term tenants.

“I like finding a market that has good fundamentals just in general for a real estate investment,” Tim says. “And if something changes in the future or whatever happens, I can always go back to that long-term tenant.”

What does Tim consider “good fundamentals”? Unique properties, convenient locations, and STR-friendly neighborhoods.

#2 - Delegate and outsource

Tim is living proof that managing your short-term rentals (STRs) doesn’t have to be a full-time job. He works less than 30 hours a month on his 60 properties. How does he do it? Delegation. 

“The really cool thing about short-term rentals is that if we set up a way to manage them, we pretty much manage them the same way no matter where they are,” he says. 

Tim’s found trusted property managers and housekeepers, many of whom have become long-term partners. He also works with a third-party receptionist team to handle guest communication. 

“If we've chosen the right property and it's a good investment, we're earning a lot more than we are with other traditional real estate investments,” Tim says. “We can afford to pay other people for all the additional help.”

#3 - Trust data to make confident investments

Tim loves investing in centrally located midtown properties because they’re profitable for STRs and long-term rentals alike. But he encourages hosts to develop their own Airbnb investment philosophy. Is it all about sheer ROI, or do you have specific interests when it comes to locations and property types?

If your goal is to make enough passive income to travel the world, you’ll have a very different approach to your STRs than if your goal is to own a vacation home that you can enjoy while also generating passive income on the side.

“Investing comes down to data,” Tim says, “and [AirDNA does] a really good job at making that data accessible.”

Listen to the full episode with Tim, or check out our guide on how to manage your Airbnb like a bona fide business.