Then he found a section 8 tenant and rented the house to them. Once he had a tenant in place, he went to his mortgage broker and refinanced the private lender loan into a conventional mortgage at a much lower interest rate. This lowered his monthly payment and created much more cash flow from the rental property.
After refinancing, all he needs to do is to manage the rental property and hold the property until the loan will pay off (which is why it is such a great strategy for building long-term wealth).
If you do this right you should not have to come out of pocket with a lot of money at all, and you should be able to use the same money over and over again to buy more properties. The key is to buy the properties at enough of a discount to market value that they will appraise for much higher than what you paid (enough to cover your purchase price + your repairs).
Andy has utilized this strategy to buy all of his rental properties. He now owns ten rental properties and has great cash flow. He is also a millionaire (and is only 31 years old).
These rental properties are all located in Miami. Andy noticed that Airbnb rents were pretty high in Miami for visitors and tourists (especially since the onset of the epidemic). During the Super Bowl, he experimented with one of his rentals and decided to put some rental furniture in place and list the property on Airbnb. That experience worked out really well (and he made a lot of money).
He then converted the property in this video to an Airbnb. He is now in the process of slowly converting ALL of his section 8 rental properties to Airbnb rentals because the cash flow and return are so much higher.
As an example, this property is listed on Airbnb for $300 a night. In the high season, the rate is higher. The cash flow per month from just this one Airbnb was $9,000 last month (which is higher than projected in the video). Compare that to the $2,000 that Section 8 tenant was paying and you can see why Andy is converting his rentals to Airbnb. It makes way higher cash flow and the properties are left in much better shape. Section 8 is notorious for tenants destroying your rental property. With Airbnb, the person staying in your property changes every few days and you have the opportunity to inspect the property and charge their deposit for any damages that occur.
Andy is on track to make over $300,000 this year from just 3 Airbnb Rentals. Andy does not need to work anymore and can live very well just on the income from his rental properties. Converting rentals to Airbnb is a very good strategy that takes the buy, repair, rent, refinance strategy to a whole new level and creates anywhere from 3 to 5 times the cash flow without any additional risk. This strategy is working so well that we will be having an Airbnb Boot Camp at the beginning of next y ear to teach our students how to implement this strategy.
I have another video of Andy from a few months ago at another Airbnb property that rents for $800 a night (or more). You can watch that video here.
As I mentioned in the video if you want to book a call with Andy to discuss this Buy, Repair, Rent, Refinance Strategy and how it works and whether or not it would be a good fit for you then use this link below to book a call: