On today’s podcast episode I talk about the opportunity in short term rentals and Airbnb.
Over the past 2 years, some of my students have transitioned from rental properties and section 8 rentals to Airbnb. And the opportunity in short term rentals is something that you need to pay very close attention to.
As an example, my student Andy had a Section 8 Rental Property in Miami that was generating around $2,200 per month. When the tenant moved out, he decided to turn the rental property into a short term Airbnb rental. That same property now generates north of $8,000 per month. Over the past 12 months, he has been converting all of his rental properties to Airbnb. He is only 32 years old and he is already financially free.
My student Davidson purchased a property on the West Coast of Florida in Lehigh Acres that he was originally intending on fixing and flipping. I encouraged him to explore the opportunity of keeping it as a short term rental. His listing just went live yesterday and in the first 24 hours he had 17 days in December booked, as well as this weekend and next week booked too. His booking revenue is already at 3 times what that same house would rent for.
Another student of mine Kadi with her brother Dale is now working on their 3rd Airbnb property in Palm Bay, Florida. When we showed the examples of these students at our most recent Fixing and Flipping Houses Boot Camp everyone in the room wanted to get into an Airbnb!
If you are a real estate investor, you should consider investing in this short term rental space. If your financial freedom number is $20,000 per month, and one Airbnb generates $5,000 per month, then you would need just 4 Airbnb’s to be Financially Free!
There are many advantages of Airbnb to a regular rental property including:
1. cash flow of up to 3 times as much (or more)
2. Your property is not being trashed by tenants
3. Utility of being able to use the property yourself with your out of town guests
4. Your Airbnb could be your “retirement”
5. Financial Freedom sooner
We are converting more and more of our students to Airbnb. You should definitely explore this opportunity. The buy side when you purchase the property looks the same. You are buying a wholesale deal at a wholesale price. But once you have purchased the property, you could choose to keep it as a rental, fix and flip it – or keep it as a short term Airbnb rental. If your property is located in a decent middle class neighborhood you should definitely explore the Airbnb option.
To listen to the podcast episode, click on the white arrow in the black bar (please wait a few seconds for the podcast to start)