HOW TO BE AN AIRBNB HOST FULL TIME!! (mathematical breakdown)
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- čas přidán 6. 08. 2024
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What does it take to be a full time Airbnb host? In this video I break down how much money you need to invest, save, etc to leave your day in order to be a full time Airbnb host. This is just a basic breakdown and certainly there's many factors, but this should get you thinking about goals to set. Enjoy! Let me know if you have any questions in the comments section below.
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I liked your video except for the suggestion of the 15 year mortgage as the obligation is so high. You can pay off a 30 year mortgage in 15 yr and 4 months by simply making the same payment as on the 15 yr one. Gives you much more flexibility in case something happens in your live.
Agree with you. I think it makes more sense to pay more and have a 30-year mortgage.
The high obligation is worth the lower interest rate for many higher income investors.
The better is to go for a HELOC instead of a mortgage because your equity is kept liquid, ready to invest into another investment property.
Loving your videos, thanks for sharing these tips!!! 😊
You're welcome!
My wife found your page and we have been hooked. We have been in real estate but never buy and hold. With our mindset towards retirement we want to buy and hold but hate long term rentals but we love traveling and staying in short term rentals. Idea sparked and now we are dead set on doing short term rentals. We even got married at a beautiful home that was on home away.
Our question for you is what are your steps legally to figure out what you need to acquire STR permit and find out the rules? Anything would help and I know each state/ city varies. We have an idea but we would like to hear it.
Great channel and we will probably be a guest at one of your homes one day.
Cheers and thank you.
Wade and Abigail.
I been renting 3 houses annually in South Florida, and been trying to find the guts to move on in the AirBNB territory. Your video gave me the push. I'm a Telecom engineer during the day, and very cautious Real Estate investor in the Weekend.. THANK YOU.
Joe Zada let us know how it went
Any updates? Are you rich from Airbnb?
I just got addicted watching your videos! Keep it on! Good jobs!
Thank you! Glad to have you in our community Serena
AWESOME RULE OF THUMB CALCULATION!!!!! Thank You
You explain everything so well!
Great content! Thanks Richard!!
You're welcome Moon:)
Awesome breakdown!
I live in a university town, so football games, basketball games, baseball games, plus so much goes on here. Lots of conversations, concerts, all of that.
great content. thanks.
Reality!
Thank you once again Richard
EXTREMELY HELPFUL VIDEO!!!! Thank you very much :-)
Excellent video! I just found your channel and the videos are very informational which led me to subscribe! I do have a question. How are you getting a fixed 30 year mortgage as an investor? Currently, I have 1 long term rental, and 1 long term rental that I'm in the process of buying. For both of these, I obtained a conventional, owner occupied loan however, my lender doesn't question what the buyer does with their property after it's bought, so that works for me. But investing in an Airbnb, I'm doing this with a friend so that conventional owner occupied loan approach might not work. Any suggestions or personal experience on how to obtain a 30 year fixed mortgage?
Fantastic video. Thank you!
Good info, regards from México!
I think the solution is to buy with equity. Then refinance and take down payment in another property, and so on..
I am a RN in the Hudson valley region of New York. While I love my primary job, I always wanted to own my own business. I would like to find a home for my family and I was thinking maybe we could pay some of the mortgage with Airbnb. What are your thoughts? Where should I start? Thank you
Good information here. If you're going to be an Airbnb host full time you have to know your numbers.
Very good. I like so much. Are you planning to coming nepal?
very helpful
Thanks what do you do on a vacation village where the only tourism is june-sep. Nothing oct-may
You should be buying the property with either interest only loan or velocity loan. This will allow you to pay the house off faster and save tons of money in interests.
70% occupancy rate is way too low according to my imagination. We are in our first month and we strive to make the occupancy rate at least 25 days in a month. to that end, we sacrifice prices of immediate days.
How long does it take to get ramped up to 70% occupancy?
How about if I can’t afford buying property outright or mortgage? .. how would the numbers play out if I’m renting and using that rental property to run airbnb business on?
Richard. Where can I find the AirBNB rental probability on some areas/zip code. My first existing property im concidering to convert from annual rental to AirBNB is in zip code 33624. Tampa area
We have two bedrooms to b and b but my hubby snores...how do people handle that ? Or renters who snore..? Weird question but since most people snore these days what do you do?
I’ve looked into this and I am considering an interest only loan after putting 20% down. This would make my payment really low and increase cash flow. I would also take that cashflow and save it to buy another asset quicker and cover the next 20%. I already own a personal home. Really dont care to pay down the note on the investment properties as long as they are cash-flowing. I can always pay into the principle if I choose to. Good video.
Interesting, where is the risk? sounds to good to be true.
I
Already own a 3 bedroom in San Diego at 2.5%. The extra 2 rooms are empty. This is looking like a good idea but I will have to still live there. Are there gonna be any major obstacles? Right now it seems dumb to not do this
Love the third recommendation: I recommend you do the math.
Hi!
I have a question about how to manage airbnb account if we have more places. I will be super glad if you can give me some tips.
I will have second hostel and both are on Airbnb. So for me will be easier to have another phone number to know immediately from which place clients are calling.
But also I'm primary host in my account, so btw always people will contact with my main phone number which I'm using in the first hostel.
Because also I receive many massages on whatsaap and always I have to check who is writing. If I will have another phone with another number and Co- host I think will be easier.
What do you think bout it?
Regards
I like this, but the issue is with most places in the world is that the tourist season is about 3-4 months a year where you can get 25 days of guests a month. And then another 2 months of preseason and after season where your price will be significantly lower. Places that rely on summer are tough, because during the winter there is nothings happening.
I always recommend investing in a property that has at least two seasons. And if so, then on average you still need to make those numbers. So if you use the same numbers and have two seasons then instead of making $214/night you need to make $350-$500/night during the busy times to offset.
yes , like Seattle in summer is good time, but winter is so poor.
Does the landlord pay for water bills, electric bills? Etc
what happens if one of my renters has to quarantine for 14 days and cant fly home? I live in Florida that is where my units are. we allow everyone to come lol. Due to this our covid outbreaks are high. we use an ozone machine between guests to make sure rooms are clean. But someone has Omicron and now says they can not leave the unit for 14 days and its not their fault. they are staying, not paying.
I have a question about Owning Property vs Renting Property. I understand you are gaining assets and equity by owning your own property but some of us just don't have the capital for that and it's hard to get out of the rut of making ends meet. Do you have any suggestions about either gaining capital for a down payment or dealing with landlords and renting a property? Also, I want to experiment with renting a property out of my state to see how it does before I make the full 30 year commitment.
I understand and you sound like you're on the right path by thinking about out of state management. Are you able to rent out part of your current home and get started? Private Room, Shared Space, etc.
Short Term Rental Secrets Yes. I'm making about $1000/month in the suburbs of Chicago with just a private bed and bath. That money is going to our mortgage. I really really love doing this and want to scale up.
search for owner finance deals that dont require 20% down. Target people facing foreclosure and offer to take over their payments =)
Toby Henderson Thank you for the info!
Hi Richard, thanks for your cool videos. I'm an Amsterdam superhost and would love to expand, were it not for the fact that there is a crackdown on Airbnb's going on here. It's illegal to rent out an apartment for more than 60 days, you're only allowed to rent out one room in your house the whole year round. Airbnb is getting a real bad press and image among locals. I understand the same thing has been going on in New York for quite a while. What do you propose to do about this and how do you manage your New York properties?
did you find any solution to this problem yet?
can a town stop you from Air b&b ing your home ??
Isn’t it a tonne safer to rent and conduct rental arbitrage rather than lock into a mortgage
How are you going into your second property if you quit your job, because you lose that income
Are condos common for AirBNB?
I’ve been thinking about getting into this my problem is a House is a liability and one with no immediate cash flow if I can find a way to sublease all the rental properties then eventually move to multi-unit properties I big deals big dreams one day....
D Bates house is not a liability is leveraged correctly. Read rich dad poor dad. Eye opening. Gl
Much easier to manage others properties.
You didn't include closing costs, house inspection costs, costs to furnish and set up the house, etc
Hey! great videos, I'm learning a lot. I bought a duplex in L.A. , 2 units, 2 beds 1 bath each, and with my wife we are thinking of airbnb. I just have a question, my wife is a realtor and she is doing it pretty well, and we are thingking about me quiting my graphic designer full time job, with a not so high sallary, so I can manage the airbnb, but I'm not so sure if I should take care of 100% of the things that and airbnb requires, like the calendars, the account, answering questions, CLEANING, and everything else.... do you think this is a little crazy and we should hire a company to take care of some of those things or is something that every airbnb host did at least at the begining to start in the business? thanks! (sorry my English, is not my first language)
I don't think that's crazy at all if you can afford it.
Did you ever put this on airbnb?
you can do it...not as difficult as you think...I manage mine myself including the cleaning and i also work full time. You just need to make sure you manage your time along with the calendar...if you plan to scale up to multiple units then i would recommend a good cleaning company who is familiar with Airbnb
What if you have the cash to buy outright and are too old to get a mortgage, this means your costs are quite low as there would be no mortgage, please advise.
Hey Ally! Come join our FB Group and ask your question so the community can give you answers and I will as well facebook.com/groups/struniversity/
Richard I really like your videos, but my question is what major city can you find anything for $400,000? In most west coast cities you cannot find a tent for $400,000. I think that you would need to buy a house for a million that could rent for $300 a night. Unfortunately the math does not work for urban areas.
Keep up the good work.
Just an example. Increase the numbers accordingly for popular urban areas. Thanks for the support.
Stop looking at Paris and SF and look into up and comers like St. Louis, Nashville, Pittsburgh.
Philly has under 400k 2 bedroom homes
exactly, but i have a solution, you just rent the property and then put it on airbnb. no downpayment, less than 8k start up costs and what not.
Is a 70% occupancy rate realistic for a 4 bedroom house in Central Florida? Thank you
depends where you are in central Florida. are you close to disney world or other big attractions? Do you have special amenities?
Yea that’s where I am near Disney and I have pool 4 bedroom
Cleaning/turnover costs...why aren't they mentioned?
Charge the guest a cleaning fee.
How about guest gives stress, threatens you for the review, steals, destroys, don't follow the rules, so the other floor guest doesn't want to pay, the cause couldn't sleep. Has to buy quality furniture to decorate the house but some guest ruins it, smoke weeds, have to buy again, cost money and pain.
When you ask Airbnb,$500(stolen or destroyed by the guest), Airbnb might through you only $150.
Worst business in the world, you waste your time, energy, money and you had little happiness.
Airbnb market capital is $123,000,000,000. cause we gave Airbnb our properties, our energy and they make money. Airbnb not even takes any deposit from the guest, Airbnb works for the guest, not for the Host. Now you judge yourself please.
@@TUSHERBHUIYAN Not sure I understand what you are saying. I set up Airbnb investments that passively earn me more $ than I know what to do with. Definitely would not say it's the worst business in the world...
literally jus had this convo
Smart minds think alike ;)
Or you could just rent the property out and then put it on Airbnb instead of buying the whole thing. Way cheaper and you can purchase more properties faster resulting in more profit.
How about $22,000 purchase price?
Great overall advise on all Airbnb matters from Richard and he knows the business. However, this is a very high risk investment idea for a number of reasons including the financial situation of the investor, local laws, location of the property (will make or break your plan), if Airbnb is even that reliable to get you the occupancy rate of 50%, the required capital, time, too much competition (everyone is doing Airbnb these day),efforts, and other unexpected costs (furnance, roof, environmental clean up, natural disasters and etc), and many more reasons I would not go this route. If you want to try investing in real estate for a long term for far less less capital, try less risky long-term real estate investing of buy and hold than full-time Airbnb. Who knows what's going to happen to Airbnb business model in 30 years but real estate has been around for millennia. The scenario sounds great here but I would be very cautious in following through. My 2 cents from someone with real estate experience and not so much Airbnb background.
Great video! If you purchase a property strictly for STR, is it possible to get a 30 year fixed? I thought the laws state you would need to get an ARM, at least in california?
Where do i find that mortgage calculator
I just googled "mortgage calculator"
Change the font
Its illegal in nyc
I don't see these numbers as right. on a $400k house in Fort Lauderdale, this is what this is going to look like.
$516 Month: Real Estate taxes
$250 Month: Insurance
$180 Month: Comcast
$180 Month: Electric
$100 Month: Water
$120 Month: Yard
$30 Month: Pest
$120 Month: Pool
$1528 Month: Mortgage
$200 Month: Repairs
+_____________________
$3224
He's off by $1000 a month.
That's a lot.
Hey Casey, it obviously varies depending on the state and location. However, the point of this video is to outline a methodology that others can use to estimate how they can accomplish their goals or decide whether or not they should pursue a real estate deal. Based on the deal you're outlining you'd need to make a decision if this is worth moving forward on based on the numbers. Maybe you can get more per night, maybe you can find creative ways to cut costs. If not, then look elsewhere. That's the point I'm trying to make.
Do you know of any locations with better numbers? Where is the house located in your example? Thanks.
The numbers in the video are simplified to again, give people a methodology to make their own decision on whether or not to pursue a STR real estate. I have homes across the country from Manhattan to Colorado, Alabama, and now Jackson Hole. Fairhope, Alabama has been my most profitable property to date.
What if I own my Airbnb 100%
Why not just rent the apartment And airbnb it?
Have you ever heard of anyone buying property with a VA loan and turning it into an Airbnb
Why would you tell people to start off by buying a home when they can start and master the business by managing someone else’s property instead? O would not go buy a home and assume all that risk for Air BNB especially if you’re a beginner. You spoke about savings for about 3 years. The return is not high enough for me to put 3 years of my life into that one investment. 🤦♂️ I rather go about Air bnb smarter and use other people’s homes to run my business
Why do i have to own the property? Can i let it?
You certainly can if your landlord is ok with it. I think that's a great way to start out and get some capital to eventually own properties. The biggest problem with subletting is your entire business is at the hands of your landlord and you don't have much control.
Which countries is subletting ok? Was looking to do this in Barcelona since I'm from europe but I got the answer that it was illegal...
Eventually I wanna do that renting 10 homes
Instead than buying different properties all around the world why not buying a hotel and having all in one place? You can control everything and all expenses are much less because it is a single infrastructure.
I don't want to be in the hotel business. There's added benefits for my own enjoyment having properties I can visit, enjoy, resell, etc.
sure i can inderstand the enjoyment but from a financial point of view and management it is much easier. Or if not a hotel, a B&B, for people who start and want to live by that activity as their main one, is much more efficent in terms of costs/benefits. You can have several guests at the same time and you can cut off all cleaning/check in expenses since you are there. With one big apartment you can make several rooms to rent, each one at a price smaller than you would rent a whole apartment, but in total you could earn much more. I know because i have friends here in Florence, Italy, who live well by owning a single apartment in Florence city they use also as B&B. Usually it is a big apartment divided in 2 parts, one you live in, the other you make the B&B. Everything simple and under your direct control, no need to hire people. Also you can place your rooms on airbnb as well. I noticed that prices are just a little bit less than those of full apartments in same place with similar features (like 60/70%). And buying a big house with many rooms is much more convenient than buying several small apartments, at least here (for the simple reason that small apartments are on higher request). Not to take into account taxes: at least here, if you own just one house you pay little tax, while if you own many, you pay higher taxes, and also expenses for utilities (water, electricity) are higher if it is your second house.
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It's important to note that not every decision is based on the most financial upside. It's about doing what makes you happy and gives you the most enjoyment so you can pursue this for 10,20,30 years. I'm just not terribly interested in the hotel business and I fundamentally believe Airbnb is the future of travel. That's just what gets me excited but to each their own.
Hey,
I am your subscriber.
I am a super host in Delhi for Airbnb.
I would like to meet you.
If possible can we plan.
Just missed me! I was just in Delhi about a month ago!
And there's 30.4 days in a month on average, not 30. That's an important number in your calculations so you should be precise to at least one decimal point.
Could you please do a rap version of this video? Thanks!
ahhh u lost me at this and that and this and that and this and that expence......