Jaren Sustar: Invest in Airbnbs with Facts, Not Feelings | AirDNA

Jaren Sustar was once a college baseball player obsessed with putting in the time it takes to succeed. These days, instead of the baseball diamond, he pours his grit and work ethic into the short-term rental (STR) landscape.

Like the 19-inning game he once played, Jaren’s experience with real estate investing has been long but rewarding—and has given him financial freedom. (He was once $10,000 in debt and, today, has a portfolio of over 20 STRs.)

Jaren recently joined us on the STR Data Lab podcast to share what he’s learned and what he thinks new investors should do to get started—no matter the economic climate.

How to invest in Airbnbs—with a plan

There’s no sugar-coating it: Real estate investing does come with some level of risk. Jaren learned this early on when his first rental property barely broke even. He says having a data-backed strategy from the beginning would’ve helped him reduce risk and make more informed decisions.

“It taught me … I really need to create a foundation,” Jaren says. “[I] dug in and really got in and had a mentor in my corner, learned everything I could about real estate, specifically long-term rentals at the time.”

That mentor helped Jaren understand the importance of data, purchase his first STR in 2018, and eventually scale his portfolio to over 20 properties by early 2021.

Use systems to scale your Airbnb business

Many Airbnb hosts aren’t just hosts; they’re also full-time employees or business owners. Jaren oversees several businesses and still works a day job, which is why he suggests that every investor delegate and automate as much as possible.

“You just have to find that time, be intentional, know your why, and then as you start to build through it … how can I systematize this?” Jaren says. “Can I offload some things and … progress through it as it grows?”

Systems allow you to scale without becoming all-consumed by the Airbnb grind. Trusted vendors like property managers and housekeepers, technology like smart locks, and automated guest communication can all take the burden of day-to-day management off of your shoulders. Trust us: Remotely managing your Airbnbs isn’t nearly as daunting as it may sound.

Prioritize facts over feelings

Interest rates have risen since 2020’s record lows, and many novice and veteran investors are unsure what that means for their portfolios. But Jaren says increased interest rates could actually present an opportunity. 

“In theory, we should see some price corrections happen over the coming year,” Jaren says. “I bought two properties this month that sat for over 30 days, offered $40,000 under asking, and people took [the offers].”

Having accurate data intelligence behind him also helps Jaren feel more confident in his investments. He’s no longer winging it; he’s basing his decisions on accurate and agnostic data.

“We can put together these data-driven, logical, emotionless decisions and say, ‘OK, its interest rates are a little higher, but we've got it at this price. … And we know based on data, the occupancy rates and the rents per night are going to be here, so we can feel comfortable moving forward,’” Jaren says.

Listen to the full episode with Jaren, or dive into our 5-step guide to Airbnb real estate investing.