By Sief Khafagi
Real estate investing has long been one of the best ways to build wealth. Today, thanks to proprietary platforms such as the one created by Techvestor, investors can unlock even more financial freedom through short-term rentals, says Sief Khafagi, the co-founder and managing principal of Techvestor.
“Thanks to advancing technologies, short-term rentals are rising in popularity, both from a tourist’s perspective as well as an investor’s perspective,” Sief Khafagi explains. “It used to be easy to turn a profit from short term rentals. Today, with more competition and supply, one must stand out. That’s what we do, driving the performance of our portfolio for the hundreds of investors we work with.”
Through its proprietary platform, Techvestor has been allowing investors to earn significant passive income in short-term rental properties, helping them create a wealth-building strategy for themselves.
Here are some reasons why these rentals are so attractive.
Many short-term rental properties are located in desirable locations. They are normally in regions that are attractive to tourists or are frequented by out-of-town visitors quite often.
The location of these properties alone makes them more attractive from a search standpoint, which is one of the most important factors in real estate investment today. With more potential eyes on your property, there’s a better chance that it will be occupied and not left vacant.
“Vacancy can be extremely expensive, so it’s always in your best interest to limit it as much as possible,” Sief Khafagi explains. “Short-term rentals in desirable locations will naturally have lower overall vacancy rates than long-term rentals because of the demand.”
As long as the property is located in a desirable region, the demand for the property will be there year round — even in the typical tourist “off-seasons.” For example, homes in a beach town will still be in high demand outside of summer months, providing investors with potential cash flow all year long.
In those peak summer months, though, investors can take advantage by charging much higher rates, which helps to maximize your income potential. On average, Sief Khafagi says that investors could earn as much as four times the amount of cash flow from a short-term rental compared to a long-term rental.
In addition to the higher income and cash flow, short-term rentals through Techvestor provide tax benefits and appreciation to investors as well.
Over time, the value of the property will increase at the same time that you are making income on it. This is one of the biggest benefits of real estate investing as a whole, particularly in the short-term market.
Sief Khafagi knows this well, as Techvestor has created a 16-point strategy and software that allows it to acquire, prepare, and manage properties from start to finish — including maintenance, design, management, and renovations. The company has raised more than $60 million to date and owns more than 120 short-term rental properties.
“Short-term rentals are a great way to build wealth,” Sief Khafagi said. “By investing with Techvestor, you also don’t need to worry about the day-to-day tasks associated with upkeep, tenant attraction, and improvements.”
About the Author
Sief Khafagi is an entrepreneur, real estate investor, and co-founder of Techvestor, a remote proptech company. With more than a decade of experience in real estate and technology, Sief Khafagi and his team use industry-leading data insights to scale their short term rental portfolio alongside their investors.
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