Could you quantify the amount of time you need to spend maintaining this income? Namely time spent on the platform, communicating with guests, inspections or visits to the property, replenishing supplies, etc. I’m curious to see to what degree the business runs itself once you involve a partner like Airbnb to help you manage bookings.
@@CompCrasher86 it is a LOT of effort getting the property stood up and furnished if it is not turn key. Once it’s listed you can automate most of the messaging with guests, outsource any maintenance or handy work that needs to be done and also automate scheduling with cleaners. Also using tools like pricelabs helps automate changing prices daily based on demand in the given market! Most weeks we spend maybe and hour or two managing 3 properties
Do you buy properties that need fixing up and do it yourself? Or just get a property that's just needs furnishing and get it on the market? Seems like if you renovate that would cost you big as you are having to pay the mortgage while you do it
@@bb032197 depends how long the Reno takes. When you obtain a loan you usually don’t pay your first mortgage til the next full month. For example we closed on our last property in late January but first mortgage wasn’t paid til March 1. So it gives you time to do any rehab if necessary and furnish it. We have bought properties that were furnished turn key, bought new and had to furnish and also bought two joe that required a 30-45 day rehab and furnishing to get stood up. I think it all comes down to the numbers what where the best ROI is for that particular investment.
Man I am so happy that I saw your post on BP, than I got to follow your profile and now watching your videos is really motivating! I hopefully I get to connect one day in person 👍🏻keep up the great work, you video skills have come a long way !
Question before watching the video. Could you make a video analyzing the numbers to see if the buy makes sense? I'll say I'm interested in more turn key properties.
Yes I have done a few of the property evaluation of properties we ended up buying. I suppose a video evaluating a few different properties would be a good video!
@@nickl8192 on Patreon I share investment templates and deep dives on videos for Airbnb properties, how to find them, operate them, automate the business and some other personal finance videos as well. And some live streams
Usually larger properties yield a higher cash flow, but the important metric to consider is cash on cash return - how hard each dollar invested is working for you. I will say that I’d rather have larger properties because it takes just about the same exact amount of effort to manage as a smaller property does! But some smaller properties do really really well.
Thanks for the video! This was very insightful. Quick question- what % did you put down for your properties? And do you buy houses low and remodel or buy high that’s ready to go?
Thank you! We have bought one at 20% down, two at 15% down and one at 1% down. We have bought one that was new but was empty and had to furnish, one that was turn key, and two that needed remodeling and furniture. Each came down to the numbers and selecting the best option at the time :)
@@melefante6 Thank you!! I’m really interested in starting this process. I’ll be signing up for your 101 course. Have you considered doing live mentoring courses? That way we could ask questions as you go through each process?
@@MultiMediaMaggie I have thought about that yes and will look into doing that in the future! I’m working on an Airbnb investing course right now as many people seem really interested in that as well! Thanks so much for the support!
What goes into opex? Is that all Airbnb and cleaning fees? Also based on your p&I you have a lower payment on the mountain house then the first one? Is that right I’d assume the mountain house is your most expensive
For opex - basically everything it costs to operate the property (taxes, insurance, utilities, cleaning costs, incidentals, maint and repairs, etc.) We do have a lower payment for the mountain house - Our int. rate is 2.875 on the house vs the nashville property you are referencing is a 4.99 int rate :O We are in the middle of refinancing to a better rate. At the time of acquiring the Nashville property, my credit was not as solid as it is now and also fed hadn't lowered rates to the level they have been the past few months. But you are correct, the mountain house we purchased for $550k and the Nashville prop mentioned here was $495k purchase price.
What questions do you all have? What areas are you interested in investing into a short term rental property?
Could you quantify the amount of time you need to spend maintaining this income? Namely time spent on the platform, communicating with guests, inspections or visits to the property, replenishing supplies, etc. I’m curious to see to what degree the business runs itself once you involve a partner like Airbnb to help you manage bookings.
@@CompCrasher86 it is a LOT of effort getting the property stood up and furnished if it is not turn key. Once it’s listed you can automate most of the messaging with guests, outsource any maintenance or handy work that needs to be done and also automate scheduling with cleaners. Also using tools like pricelabs helps automate changing prices daily based on demand in the given market! Most weeks we spend maybe and hour or two managing 3 properties
Do you buy properties that need fixing up and do it yourself? Or just get a property that's just needs furnishing and get it on the market? Seems like if you renovate that would cost you big as you are having to pay the mortgage while you do it
@@bb032197 depends how long the Reno takes. When you obtain a loan you usually don’t pay your first mortgage til the next full month. For example we closed on our last property in late January but first mortgage wasn’t paid til March 1. So it gives you time to do any rehab if necessary and furnish it. We have bought properties that were furnished turn key, bought new and had to furnish and also bought two joe that required a 30-45 day rehab and furnishing to get stood up. I think it all comes down to the numbers what where the best ROI is for that particular investment.
Thanks again for the transparency and encouragement!
Thank you!! :)
Man I am so happy that I saw your post on BP, than I got to follow your profile and now watching your videos is really motivating! I hopefully I get to connect one day in person 👍🏻keep up the great work, you video skills have come a long way !
Thank you for dropping this comment!! So great to connect with others that have similar aspirations!!
Question before watching the video. Could you make a video analyzing the numbers to see if the buy makes sense? I'll say I'm interested in more turn key properties.
Yes I have done a few of the property evaluation of properties we ended up buying. I suppose a video evaluating a few different properties would be a good video!
@@melefante6 Awesome! Also could you tell me what your patreon goes over?
@@nickl8192 on Patreon I share investment templates and deep dives on videos for Airbnb properties, how to find them, operate them, automate the business and some other personal finance videos as well. And some live streams
@@melefante6 Appreciate it, going to try to join soon!
Great video! I am also thinking about getting into the Airbnb space. Would you say larger properties that sleep more people net higher profit?
Usually larger properties yield a higher cash flow, but the important metric to consider is cash on cash return - how hard each dollar invested is working for you. I will say that I’d rather have larger properties because it takes just about the same exact amount of effort to manage as a smaller property does! But some smaller properties do really really well.
Thanks for the video! This was very insightful. Quick question- what % did you put down for your properties? And do you buy houses low and remodel or buy high that’s ready to go?
Thank you! We have bought one at 20% down, two at 15% down and one at 1% down. We have bought one that was new but was empty and had to furnish, one that was turn key, and two that needed remodeling and furniture. Each came down to the numbers and selecting the best option at the time :)
@@melefante6 Thank you!! I’m really interested in starting this process. I’ll be signing up for your 101 course. Have you considered doing live mentoring courses? That way we could ask questions as you go through each process?
@@MultiMediaMaggie I have thought about that yes and will look into doing that in the future! I’m working on an Airbnb investing course right now as many people seem really interested in that as well! Thanks so much for the support!
What goes into opex? Is that all Airbnb and cleaning fees? Also based on your p&I you have a lower payment on the mountain house then the first one? Is that right I’d assume the mountain house is your most expensive
For opex - basically everything it costs to operate the property (taxes, insurance, utilities, cleaning costs, incidentals, maint and repairs, etc.) We do have a lower payment for the mountain house - Our int. rate is 2.875 on the house vs the nashville property you are referencing is a 4.99 int rate :O We are in the middle of refinancing to a better rate. At the time of acquiring the Nashville property, my credit was not as solid as it is now and also fed hadn't lowered rates to the level they have been the past few months. But you are correct, the mountain house we purchased for $550k and the Nashville prop mentioned here was $495k purchase price.
:)
:p