You’ve provided so much value and really took time to break the numbers down, explain the process in an easy to follow structure and tbh are very transparent. Thank you for being such a genuine person. You are a nature with this teaching thing and have a very pleasant voice. Looking forward to growing my business and learning more from you. Thank you!!!!
Great detailed breakdown Michael! Perfect example of how Short Term Rentals are changing the game when it comes to achieving financial freedom with only a few properties!
Luv the info that you’re providing. Key factor here is finding the right property to invest in. Finding the right people to do the renovation, cleaning, property management, etc. How did you look for those?
Market research and networking with local Investors and realtors. Have you looked at Airdna before? Great starting point and they pull data directly from airbnb and vrbo.
How do you calculate projected CoC return before purchasing a property if you have no real estate experience or str experience yet and you want to see if the numbers work before an offer is made on a property?
I’m a little late to the show apparently since you posted this 8 months ago. But thank you for explaining everything thoroughly. I don’t care if I’m you last and only viewer please continue to make videos. They’re very inspiring and the give me something to look forward to in my future since I’m only 20🤣
Hey love the information, Im looking to purchase a few properties with my partner to Airbnb most likely, BUT most of these listings I see on Airbnb in my market hardly have any bookings, based off that the numbers just don’t make sense… our market is Greensboro NC Is this something you’ve noticed as well?
Great vid Michael. How much time would you say you spend managing these properties? How often do you drive out to check on the properties and how far away do you live from them? I’m interested in real estate and I’m not sure if long term rental or short term rental is the way to go
We live near two of them and live about 3.5 hours away from the other two. We automate most of the messaging with guests and our cleaners. So we normally don’t spend more than an hour or so per week. When issues pop up we hire handymen for most of the work unless it’s at one of the nearby properties and I have time to swing by and take care of it myself.
Great video. You crushed it. I was looking in the Blue Ridge area but my deal fell through and then I moved on to other areas and now it's blown up. I may have missed the opportunity up there.
@@melefante6 I've got to finish a remodel in Puerto Rico and then I'm going to focus my search on a house that is not in a hurricane zone for a change.
Can't wait for one day to be able to purchase a property. What are some good books to understand real estate more? Or is there any sources to help someone make a more educated decision around real estate?
Few of my favorite books: - rich dad poor dad - cash flow quadrant - millionaire real estate investor - buy rehab rent refinance repeat Get a free account on bigger pockets - free webinars and best place to network with investors from beginner to expert!
Do you hire a management team to take care of all of the renters at the Airbnb? And how do you find a cleaning crew? It’s so smart and I’d LOVE to do this I just don’t know how to start
We currently self manage! We automate most of the guest messaging and calendar syncing song YourPorter. You can find cleaners through Facebook, word of mouth, online searches, Turnoverbnb, etc
Michael have a follow up question for you. I am looking to invest in a rental property in Gatlinburg/Pigeon Forge area. I can't get approved for a loan on a cabin because I can't show enough income. So I would be looking at a cash buy on my first cabin. Is paying all cash for my first investment purchase a bad or good idea? Thank you!! Trying to learn this process.
If cash is the only option you can do that. Your monthly cash flow will be higher buying cash but the cash on cash return will ultimately be lower. You could always buy cash and then do a cash out refi down the road once you show income on the property. Another option would be to have someone either co-sign the loan or go in on the investment with someone that can qualify and have a lawyer write up a basic real estate partnership agreement
We don’t live close to this one. We live near a couple of ours. Just need to make sure to hire great local cleaners and when issues arise have a handyman or two on call
We paid someone to paint the house. My thought process is this: I will hire out the work if it will be more cost effective overall. Factoring in how many more days it would take me to do it myself, keeping in mind how much opportunity cost you are giving up with your average daily rate you could be charging and other holding costs. I’d like to get up and running as fast as possible. But overall it comes down to which option will provide the higher overall ROI
So when I’m evaluating properties I don’t account for cleaning fees because we charge guests the cleaning fees so I consider it a wash when evaluating properties. But when I record opex in book keeping I do account for cleaning fees as they occur and then the fees we collect from guests for cleaning are then included in our recorded revenue
No the sellers only brought in revenue around $65k/year. But I looked at what similar places were bringing in compared to the projected finished house after we made renovations and compared it to that. These numbers are actually very conservative - we are already breaking $100k cash flow for the year with a good bit of availability left on the calendar for this property:)
It was sold ‘turn key’ meaning it was furnished but we completely redid everything. Cosmetic rehab and refurbished the house so for us it was not turn key. Many of the houses in the mountains are sold turn key though which attracts a lot of investors because it can be less money out of pocket and less time to get listed on Airbnb
@@melefante6 I understand that. Your work is inspiring, I’ve been thinking of doing this same thing for a while and was just curious if you used Zillow or another platform for find it.
@@simpdaddy5 got it I think I read your question too fast! We have actually found this one through our realtor that we work with. But we do search on sites like Zillow often
It depends on the loan. If it is an investment property loan no, but if it’s a secondary home loan you are supposed to be using it for your personal pleasure a certain amount of the time. I would clarify with your lender as I am not sure if the exact amount of days
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Feel free to drop your comments/questions below! What other areas are you all investing in? What do you have most interest in?
Such awesome and detailed information. Extremely helpful and valuable info as always. Thank you!
@@josephriccaldo5200 thank you Joseph!!
Wow you explain everything so clear! I’m going to binge watch all of your videos!!!
Thank you Sonia! I appreciate the kind words and you taking the time to watch!
Your videos are very helpful, keep the content coming!
Thank you so much!
Ok. Finally got CoC on the third time through 🙃. Excellent video and stoked we’re here from TikTok before you blow up. Well done.
:) thanks for the positive feedback and glad you enjoyed!
You’ve provided so much value and really took time to break the numbers down, explain the process in an easy to follow structure and tbh are very transparent. Thank you for being such a genuine person. You are a nature with this teaching thing and have a very pleasant voice. Looking forward to growing my business and learning more from you. Thank you!!!!
Thank you!
Great detailed breakdown Michael! Perfect example of how Short Term Rentals are changing the game when it comes to achieving financial freedom with only a few properties!
Thanks hunter!!
Thanks for your video. I hope I can apply this concept 😁
Incredible video Mike! Congratulations on your success! I hope to be like you one day.
Luv the info that you’re providing. Key factor here is finding the right property to invest in. Finding the right people to do the renovation, cleaning, property management, etc. How did you look for those?
Market research and networking with local Investors and realtors. Have you looked at Airdna before? Great starting point and they pull data directly from airbnb and vrbo.
How do you calculate projected CoC return before purchasing a property if you have no real estate experience or str experience yet and you want to see if the numbers work before an offer is made on a property?
I’m a little late to the show apparently since you posted this 8 months ago. But thank you for explaining everything thoroughly. I don’t care if I’m you last and only viewer please continue to make videos. They’re very inspiring and the give me something to look forward to in my future since I’m only 20🤣
Thank you!!
Hey love the information, Im looking to purchase a few properties with my partner to Airbnb most likely, BUT most of these listings I see on Airbnb in my market hardly have any bookings, based off that the numbers just don’t make sense… our market is Greensboro NC
Is this something you’ve noticed as well?
Great vid Michael. How much time would you say you spend managing these properties? How often do you drive out to check on the properties and how far away do you live from them? I’m interested in real estate and I’m not sure if long term rental or short term rental is the way to go
We live near two of them and live about 3.5 hours away from the other two. We automate most of the messaging with guests and our cleaners. So we normally don’t spend more than an hour or so per week. When issues pop up we hire handymen for most of the work unless it’s at one of the nearby properties and I have time to swing by and take care of it myself.
Wow that’s awesome! Appreciate the reply back
@@johns3844 :)
This is one of the best analysis and thought out strategy to reach FF quickly ! Nice work ! What’s your thoughts on the south Florida beach market ?
Hi! Thanks for the info. Where do you get your spreadsheets?
Hey! Thank you for watching. I built these over time myself actually
I loved this! Thank you for this analysis!
Thanks Henry!!
Great video. You crushed it. I was looking in the Blue Ridge area but my deal fell through and then I moved on to other areas and now it's blown up. I may have missed the opportunity up there.
I think there is still a ton of opportunity and will continue to be. Keep hunting for the right deal!
@@melefante6 I've got to finish a remodel in Puerto Rico and then I'm going to focus my search on a house that is not in a hurricane zone for a change.
How is the market in Blue Ridge? I know there are 52 townhouse coming soon for short rental.
Great content. Congratulations on the new property. Question - who do you use for financing?
Thank you! For the Gatlinburg Area I have had a terrific experience working with MIG (Mortgage Investors Group) out of Knoxville.
Love the shirt too!
:)
Can't wait for one day to be able to purchase a property. What are some good books to understand real estate more? Or is there any sources to help someone make a more educated decision around real estate?
Few of my favorite books:
- rich dad poor dad
- cash flow quadrant
- millionaire real estate investor
- buy rehab rent refinance repeat
Get a free account on bigger pockets - free webinars and best place to network with investors from beginner to expert!
Nice video, what do you think invest near Lake Lanier?
I would have to do more research but I understand that is a popular lake! And southern so perhaps less seasonal. Looked at AirDNA yet?
Love the videos. Definitely something I want to get into. Keep it up
Thank you!
What a legend. He really did mean in depth
:)
A legend !!!! 🙌🏽 thanks for the inspiration 👌🏽
Thank you! :)
You know your stuff... Taking my Tesla gains to pile into real estate.
I wish I dumped some money into Tesla! Curious to see how their stock performs over the next year or two.
Do you hire a management team to take care of all of the renters at the Airbnb? And how do you find a cleaning crew? It’s so smart and I’d LOVE to do this I just don’t know how to start
We currently self manage! We automate most of the guest messaging and calendar syncing song YourPorter. You can find cleaners through Facebook, word of mouth, online searches, Turnoverbnb, etc
Unless I missed it you didn’t show how much you pay in cleaning fees and deduct that for a final net income?
Do you guys live in TN or do you pay someone to manage the property?
We live in TN and we currently self manage.
The work looks great, but it really wasn't that involved. I'm impressed just those small touches boosted your revenue that much!
Sometimes it's the little things that make a big difference. We were thankful nothing MAJOR needed to be replaced!
Michael, are properties in Gatlinburg more desirable than Pigeon Forge from a rental standpoint?
Michael have a follow up question for you. I am looking to invest in a rental property in Gatlinburg/Pigeon Forge area. I can't get approved for a loan on a cabin because I can't show enough income. So I would be looking at a cash buy on my first cabin. Is paying all cash for my first investment purchase a bad or good idea? Thank you!! Trying to learn this process.
If cash is the only option you can do that. Your monthly cash flow will be higher buying cash but the cash on cash return will ultimately be lower. You could always buy cash and then do a cash out refi down the road once you show income on the property. Another option would be to have someone either co-sign the loan or go in on the investment with someone that can qualify and have a lawyer write up a basic real estate partnership agreement
Do you ever share the spreadsheet you use or offer more detail on how you created it?
I think we touched base on instagram? If not, send me a message there
Is it OK or even required to disclose that you plan on using the property as a short term rental to the buyers/lender?
I don’t think it makes a difference. In most cases they probably wouldn’t know or ask in my opinion
Do you live near the rental? How do you manage it/ clean it in between stays ?
We don’t live close to this one. We live near a couple of ours. Just need to make sure to hire great local cleaners and when issues arise have a handyman or two on call
Hey Micheal did you hire someone to paint the house for you? What jobs do you recommend we hire for and which are better to do ourselves?
We paid someone to paint the house. My thought process is this: I will hire out the work if it will be more cost effective overall. Factoring in how many more days it would take me to do it myself, keeping in mind how much opportunity cost you are giving up with your average daily rate you could be charging and other holding costs. I’d like to get up and running as fast as possible. But overall it comes down to which option will provide the higher overall ROI
Michael, this video is about 8 months old. May I ask what the value of the property is now approx?
After the rehab and now revenue history and projections I think it would sell around $1M
Fantastic, well done!
I may have missed it but didn’t see cleaning in your operating expenses ?
So when I’m evaluating properties I don’t account for cleaning fees because we charge guests the cleaning fees so I consider it a wash when evaluating properties. But when I record opex in book keeping I do account for cleaning fees as they occur and then the fees we collect from guests for cleaning are then included in our recorded revenue
How did you know the income it was generating before any improvements were made? Was it disclosed by the sellers? Did I miss that? 🥴
No the sellers only brought in revenue around $65k/year. But I looked at what similar places were bringing in compared to the projected finished house after we made renovations and compared it to that. These numbers are actually very conservative - we are already breaking $100k cash flow for the year with a good bit of availability left on the calendar for this property:)
@@melefante6 🎉 congrats and thank you for sharing!
Did you expect to be making a video 7 months later doing over 77k in a MONTH instead of a YEAR, congrats man this doesn't happen often
Definitely not! Pretty crazy
Looks like this property was a turnkey rental, how'd you find it? Zillow?
It was sold ‘turn key’ meaning it was furnished but we completely redid everything. Cosmetic rehab and refurbished the house so for us it was not turn key. Many of the houses in the mountains are sold turn key though which attracts a lot of investors because it can be less money out of pocket and less time to get listed on Airbnb
@@melefante6 I understand that. Your work is inspiring, I’ve been thinking of doing this same thing for a while and was just curious if you used Zillow or another platform for find it.
@@simpdaddy5 got it I think I read your question too fast! We have actually found this one through our realtor that we work with. But we do search on sites like Zillow often
Real estate way better than Gold or Bitcrap
When you designate the property as a vacation home to the lender, are you limited in how many days in the year you can rent it out?
It depends on the loan. If it is an investment property loan no, but if it’s a secondary home loan you are supposed to be using it for your personal pleasure a certain amount of the time. I would clarify with your lender as I am not sure if the exact amount of days
:))
Jilly!