How to start an Airbnb business in 2023 | THE ULTIMATE FREE COURSE

This will be the most important Airbnb video that's ever been created probably okay right this will probably be the best Airbnb video you ever watch in your entire life listen over the past few years I have spent thousands of hours putting together content that teaches you how to start an Airbnb business and I genuinely believe it is the best short-term rental content that exists on the internet fight me but let's face it My YouTube channel is a very nonlinear compilation of content that teaches you airb and B but not in any structured or formatted way

every week I release videos of what I'm going through or what my business is facing or I create videos based on your feedback of what you want to learn about at that point in time so I have decided to put together this video that will act as the ultimate masterclass for starting optimizing and scaling your Airbnb business you can Think of this video as a free course for me to you because genuinely and if you watch my channel I know you know this about me I believe in putting my best content and education out there

for free that's what my Channel's always been about making short-term rentals accessible to all of you at home so because this is all free I have one favor just one hit the like button if you get value out of this video show the YouTube machine that you like me and you Like this video smash the like button and the Subscribe button which I guess makes it two favors I've already lied to you and we haven't even started the course yet help your friend Rob out it's free and it'll take you less than 2 seconds hit

the like And subscribe all right so now that we've gotten that out the way let's talk about how this video is actually going to go the first section of this video will be a general overview of how to start an Airbnb Business all right that way we can just get the fundamentals out there and then every single section after that we'll punch in on a different concept that I talked about in that video to help you dive even deeper into the fundamentals of starting a short-term rental business here's a curriculum for this video so you

can see what we're going to talk about as well as all of the different time stamps in case you need to skip ahead and by the way throughout this Video I'm going to refer to so many guides and handouts and PDFs I give this stuff out for free I will leave the link to all of those in the description down below but you're going to want to go and download that first so that you can use those as I'm teaching you for the rest of the video so let's get into the first section of this

video called how to start an Airbnb business in 3 2 [Music] 1 I'm going to try to give you as much Detail as possible with that let's get into step number one that's going to be setting your goals so I know that this might seem like very obvious and very like duh but it's really important to have an understanding of what you want out of a short-term rental out of an Airbnb before you get into this wild wacky marriage because here's the deal if you want to quit your job or if you want to make

supplemental income or if you just want to have a property that You own like let's say that you're you know in Austin and you want to own a place in fredicksburg which is right outside of Austin and you just want to break even you just want a free place where you can go and hang out whenever you want like that's a whole different mindset than if you're trying to quit your 9 to5 job so try to be realistic with yourself a lot of people getting into the the game want to eventually quit their job and

if that's you that's Totally fine but the way that you approach short-term rentals is going to be so focused on the cash on cash return whereas if you're trying to buy a place that just kind of makes money but you're fine with it because you just want to use it personally and in that case the return might not really matter all that much to you and if that's true then congratulations like your search criteria is just about to be completely blown open because you're going to have So many choices when you're not tied to that

cash on cash metric whereas if you're trying to make supplemental income you know quit your job you have to really go through your Investments with the fine tooth comb so I'm honestly trying to decide if like fine tooth comb was the correct thing to say in that moment but I legitimately don't remember what the last thing I said was so we're going to move on to step number two here which is going to be to nail down your Strategy now when I say nail down your strategy here's what I mean there are so many ways

that you can approach Airbnb you can house hack where you buy a house and rent out rooms in your house or bonus spaces in your house or maybe an Adu and you use that money to subsidize your mortgage you can also do rental Arbitrage with which I talked about a week or two ago don't really know when this video is coming out and that's where you go when you lease an apartment And then you go and sublease it on Airbnb or you can go and buy a second home property with the intention of completely cash

flowing or you can go the glamping route or you can go the duplex route I mean there are so many different strategies that you can Implement with Airbnb and this is honestly one of my favorite things about Airbnb specifically is that there are so many entry points for every single person out there no matter what your Budget is no matter what your credentials are there's always a way to break into the game and so if you're interested in learning about the top five business models within the Airbnb industry I've made this handy dandy little PDF

right here that kind of walks you through my POV and what I like about each of them and by the way throughout this entire video I'm going to be linking out to different spreadsheets and handouts so you can download all of Those for free and I would highly suggest doing it because it's going to help you on your journey to finally starting your Airbnb business if you've been putting it off until this video okay so you've decided between maybe renting out a room in your house or buying a house or rental Arbitrage or whatever once

you've done that you're going to do something else right you're going to get pre-approved all right so this is actually really really Important so this is something I really want you to do as early as possible and just in case you don't really know what I mean here what this means is going to a bank and filling out an application and seeing what you qualify for from a home purchase perspective cuz basically if you don't know what you can qualify for then you're going to be wasting a lot of time so if you make $40,000

a year but your $60,000 in student debt and your debt to income ratio is shock Like mine was when I got out of college you're not really going to be able to qualify for a very big mortgage that's going to really dictate you know the rest of the steps that we're going to be talking about today so you really need to get an understanding from your mortgage broker about what you can actually qualify for and just a heads up here most of the time when you're getting qualified conventionally from a mortgage broker they want to

see a DTI Meaning a debt to income ratio no more than the 40 to 45% range so here's how a debt to income ratio works if you make $10,000 a month but your debt is is $4,000 a month let's say it's $2,000 a month on credit cards and $2,000 a month in student loan payments like me when I was getting out of college that's $44,000 divided by $10,000 that means you have a 40% debt to income ratio so in that circumstance a bank depending on where they fall in that 40 to 45% range Really isn't

going to lend me much if anything at all now to give you another example let's say that I had $2,000 in debt in the house that I wanted to buy was $3,000 a month that would put me at $5,000 a month or a 50% debt to income rate ratio and a bank would more than likely send me an email that says Dear Rober Tito you are too poor you're not going to lend on this loan go find a good mortgage broker to answer all of your questions I like one brokerage a Lot it's David Green's

firm I'll leave a link down in the description for you if you want to connect with them so that was probably too much of a tangent but personally I think it's very important to understand the mechanics of what it takes to qualify for a loan and this is why I want you to get pre-approved as soon as possible because as soon as you have that pre-approval amount then you can actually go out and make an offer you can't really go to make an offer on A house without a pre-approval letter and you're going to want

that anyways because what you're pre-approved for is really going to guide you in step four here which is picking a market and the reason being is that if you approve for $200,000 then you're probably not going to want to set your sites on Los Angeles or New York or San Francisco you might have to stay in the midwest or some parts of Texas or so many other places in the country but effectively it helps You understand where you can and can't buy so when you're picking a market there are four different places that I'm always

looking at I like national parks state parks eclectic cities and vacation destinations so national parks and state parks for the most part I feel like that's pretty self-explanatory but just in case you don't know Caleb you know leave the definition somewhere on here when I say eclectic City what I mean is it's usually a city that's in between Two cities or it's a city that is right outside of a very popular destination Eureka Springs would be a really great example of this very eclectic town has a draw to it people are always going to it

it's got like cute shops and great restaurants and everything like that Julian outside of San Diego Fredericksburg outside of Austin like those types of places places that for whatever reason people just love visiting vacation destinations would be Like beach towns mountain towns Lake towns anything like that or tourist towns like Hollywood or Orlando home of Disneyland and Disney World which is allegedly the happiest place on Earth but let me tell you I've gone with two kids it was far from a Happy Time have you ever gone to I mean like it's like they they pit

you on this idea that it's going to be all magical and you're going to be on boats and you're going to be singing songs with freaking Mickey Mouse But but really it's like you're finding like whatever food you can to give your kids it's like some kind of fried food or some like $18 sandwich and then it's like you noon comes around and you have to decide do we stay here or do we go home because it's about to be nap time and if we miss nap time all hell will break loose for the rest

of the day after we get home however why would we want to leave at 11:00 a.m. or 12:00 p.m. we spend $139 per ticket it's Literally like $300 or $400 just to have gotten to this point and the tickets were $300 but the parking at Disneyland was $500 so what are we going to do so anyways when you're picking a market you really have to ask yourself why why do you want to invest here do you want to invest invest here because you heard Rob built casually mention it in this video I wouldn't do that

cuz I was just grasping for straw here on the moment do you want to invest in a market because You personally have been there you like it you've been a tourist there and the idea of getting to visit it every so often as the owner of a house in that market makes you excited then yeah okay great that might be an option do you want to invest there because you have friends family there or a random cousin who's willing to be the boots on the ground awesome you want to invest there because you've done a

little bit of research and you found out that that Particular city is on the rise for short-term rental and it's going to be appreciating like crazy over the next 10 years whatever reason it is I just want you to have a why I want you to pick the reason yourself I have a lot of students in host camp and a lot of people reach out like daily that's like should I invest here where should I invest and I'm like wherever you want to invest that makes sense for you my job isn't to just handpick markets

for you my job is To help you choose markets and understand why that market might be a good idea and how to analyze that market and see if it's a great investment also when you're picking a market it would be very ideal if you ran an audit okay so go to redin truly Zillow realor.com wherever you want to go and just start looking at houses and see what they cost there right so we have a general understanding at this point what you're preapproved for let's say it's $350,000 now I want you to go into that

City on red fin and I want you to put a Max of $350,000 and I want you to see what that actually buys you is it buying you a decent house in a decent neighborhood or is it buying you kind of a crummy place and so thus maybe it's a better idea to go and find a different Market you know you have to go and run an audit and understand how far your money will go in that City and then while you're running Your audit I want you to go and research resarch the short-term rental

laws and regulations and see if Airbnb is even legal there cuz you never really know a city could be totally for it or totally against it either way you're going to have to do a little bit of research moving on to step five here and I'm pretty sure I didn't even say steps one through three I just started at four this is step five once you picked your Market you're going to move into finding A realtor this is really one of the more actionable and tangible steps that you can take first really big one being

getting pre-approved and then finding a realtor and with these two steps you can literally go out and make an offer I want you to go out and do everything that I'm showing you here but finding a realtor is very important and ideally you want to find a realtor that understands short-term rentals I usually call Realtors and I interview them a bit And I throw them soft balls and curve balls and I'm like yeah so do you invest uh do you know what Airbnb is and if they're like yeah I think I've heard of it and

I'm always like yeah okay thanks for your time how do you not know what Airbnb is hey right back at you no no no I'm just kidding I'm just kidding well if they don't know what Airbnb is is that I'm probably not going To use them okay so it's very important that you find a realtor that at least understands like the concept and like the perimeters if they're in actual investor themselves or if they know people with airbnbs this is just going to be really huge because they may then be able to actually give you

anecdotal evidence or povs or insights into the actual Market that you're trying to buy in however you decide to find your realtor it's very important that that Realtor gets you on a list and what I mean by a list is they get you on an autogenerated list that fits your particular criteria the bath count bed count square footage price whatever that is then anytime a home within that criteria hits the market it'll automatically send you that listing to your email okay step six here I want you to spy on your competition what I mean by

this is I want you to go to Airbnb and start looking at the neighborhoods That you're interested in buying in and start just doing a competitive audit on how well your competition's doing so let's just say that you find a specific neighborhood and you're interested in buying a three-bedroom two bath going to the Airbnb filters put in three-bedroom two bath and take a look at all the listings that pop up that might be similar to yours and start just looking at their interior design uh generally speaking in this neighborhood are people Pretty good at interior

design do they have great listing copy do they have great photos everyone in this neighborhood just a complete design nerd and you're not really much of a design nerd and maybe you can't compete with all the awesome hosts in this neighborhood so thus maybe you want to invest in a different neighborhood or does everyone suck you know this happens all the time did people take photos of their listing with the potato phone and Thus all you have to do is come in and take professional photos and and just buy furniture that's not from Goodwill if

you do those two things you could be the king or queen of that neighborhood right so doing a little bit of research spying on the competition seeing how well they're doing looking at their calendar seeing how booked out they are how much money they're making this is going to be really really helpful for you in determining this is an area you Want to invest in Step number seven okay we're going to speak about step number seven in this whole entire process still deciding what accent that was but step number seven is analyze your deals okay

I'm not really going to go into Super detail into this cuz I actually have an entire video that's overlaid over my face right now where I actually go super in depth on how to analyze I'm just realizing that this is a very awkward way to hold my hands but what I want you To take away from this step in this video is that I think that you should really learn and master the art of comping Airbnb deals okay when I say comping I mean pulling up comps seeing how your competition is doing to me this

is by far the most important skill you can have as an Airbnb investor host entrepreneur I really do hammer this process over and over and over again in host Camp really just drill this into my students head like how to do this Because it can make or break the deal right it can really determine if your deal is a 10% a 20% a 30 or 40 I had someone that came to me with the 50% cash on cash deal and they said do you want to partner on this I was like heck yeah but then

I ran the deal with them and it ended up actually being like a 10 to 15 maybe a 20 in a perfect world and I just walked into the process with them and I was like you're missing this expense this expense this expense have You looked at this have you seen that your competition is doing this and you don't have this right so it's like a whole process that it's very nuanced and it's very important to just sharpen the skill as much as possible again my other video on analyzing Airbnb really goes into depth here

but I want you to do this 30 40 50 times I want you to do it 10 times a day 20 times a day until you're comfortable enough to make your first offer boom you've analyzed the Deal you're ready to go you found a cutie you found a little Quant boom you've analyzed 50 deals you finally found the one you said Rob I've done it I found the one that comps out at 21% but if I really knock it out of the park it's going to be at 25 or 30% now what what okay this

part is crazy all right so I just write this down you're going to make an offer what I'm going to make an but it's so scary it's becoming real rob it is becoming real and here's The cool thing making an offer is pretty easy your realtor really does all the work and then you sign the paper right make sure that you understand the terms make sure that you understand the contract that your realtor explains that to you and I'm not saying go out and make willy-nilly offers but if you go when you make an offer

and it gets accepted there are certain opportunities for you to walk away and still get your earnest money back Now understand what Your contract says it's going to be very specific to your state but it's not like if you make an offer that's it you have to buy it you have to buy it right then and there I walk away from deals that I'm in esro on all the time it's not because I want to but it's because maybe I uncover something during due diligence maybe the inspection came back bad maybe the appraisal was right

under and I was able to walk away from those deals and I was still able to get all my earnest Money back because I had things in my contract that allowed me to walk away from the deal so let's just say that you make an offer and it all goes Super well inspections were great you negotiated with the seller maybe appr appraisal came in just a hair higher than the offer that you put in and all is good and great should take you about 45 to 90 days to close on the loan sometime sooner we

actually made an offer on a place last week and we're actually Getting funded on it in like the next week or two super fast going to probably be the fastest loan that I've ever closed and I've also had stuff that's gone out like 120 days so just be prepared here and just understand that your mileage may vary moving on to step number nine here I don't even know if I said step eight on the last one but it doesn't matter step number nine here is going to be to remodel and furnish now you may not

be remodeling at all but Maybe your place needs a little TLC a little tickle a little laugh and a little cuddling you might need to go paint the walls or rip out the carpet or change out countertops or remove bodies from inside the wall like whatever that ends up being set set your budget from the beginning and make sure that it falls within your overall budget and however much cash you have in your bank account and that you're comfortable with making the investment in your remodel Now for me when I'm seeking out airbnbs for the

most part I'm trying to spend like5 to $110,000 on remodels Max I'm trying to get more TurnKey houses these days because I just don't have the time to go and put the Sweat Equity into it but you starting out for you to get a really great deal you might have to go and do a little value ad so you just have to factor that into your budget then you also have to furnish it now Furnishing is its own topic as well and I have an awesome video on this this is actually one of my favorite

videos I've ever done and I think it's a crowd favorite 2 it just walks you through the entire philosophy of Furnishing your place okay but since I cover this in depth in this video I'm going to keep moving on here but I will say that you want to budget about $10 a squ foot minimum to furnish your place so if it's a 2,000t place it's going to cost you about $220,000 to furnish now for me I Do have some bougie champagne taste so I'm usually going to be in that $10 to $15,000 range so if

it's $15 aot and it's a 2,000t place it could easily cost me $330,000 to furnish it most of the time I'm falling in between though but if you want help staying in that $10 per squ foot range I have a full Furniture list like literally everything you could possibly buy everything you possibly need for an Airbnb put it together in a free pdf you can have that too all you Have to do click add to cart by I've done all the hard work for you took me many many many hours to put this list together

but I use it for all of my airbnbs so go forth get those credit card points furnish your Airbnb and you know you're welcome that's it you're welcome after youve done light Renovations or you remodeled it and you furnished it the place is ready it's ready to go oh my gosh we did it we made the offer we closed the place we've Remodeled it we furnished it we're to the Finish Line right Rob well not not really not quite to my tempo no honestly I think if you've analyzed it you've gotten it under escro you've

closed on the house hard part is that over but like half of the hard part is like done but now we're moving more into the Airbnb side of things okay so once it's furnished you're going to hire a professional photographer I cannot tell you how frustrating it is when people Ask me to review their listing or give them feedback or advice on their Airbnb listing and the photos that they've taken on said listing was taken on the freaking Blackberry from 1993 and I'm like dude why would you spend 10 20 $30,000 on furniture and 40

to1 $50,000 on a down payment but you won't spend $150 to $800 on photography to make your place sing Oh that was stupid oh I hate that that's even in here well to be fair it is like 10:45 at night haven't Recorded a video this late it's been a while moving on hire professional photographer I mean really if there's one thing you take away from this video please just pay like 500 bucks for a photographer I promise you that my ear itches and I also promise you all right that it's worth it I promise you

that if you have great photography it's going to pay for itself over and over and over again there was one time I took cell phone photos and then I replace them With real professional photos and then literally like that same day I got four requests and then the request that I took turned out to be a $110,000 request over 3 months you just cannot beat the ROI on great photos a lot of my listings are in Southern California if you're in the Southern California area I highly recommend my good friend bark her Studios he has

literally like I attribute a lot of my YouTube success to him Settle down no way uhuh get in the back please he took this photo of kjo which was a thumbnail for the first YouTube video of mine that ever just went truly viral and just completely blew up and then my whole platform grew as a result of it now obviously I think the video was probably pretty good too but I mean a good photo could be a reason you cry or smile or laugh about a memory or the reason you click on a YouTube video

like my thumbnail videos or the reason you Spend thousands of dollars to book an airb or the reason why someone else spends thousands of dollars if not tens of thousands of dollars on your Airbnb so really just spend the money here okay or else I'm not going to let you watch this channel anymore anyway moving on to step number 11 once you have your pro photos guess what you can do you can actually make your listing make your listing on Airbnb okay upload those photos write good listing copy this is More important than ever with

all the Airbnb changes and the redesign of their website get those keywords in there that really will help you rank for all the different categories on the Airbnb website and yeah just like put a lot of time and energy into making sure that you razzled Dazzle people with your Airbnb listing and guess what I have five amazing tips for you in a handy dandy PDF what you have so many PDFs Rob yeah you're welcome I make these to help People because I just want to see you succeed so you can download that for free and

it'll give you my top tips which is actually my nickname back in high school anyways it'll give you all my top tips on how to have a great Airbnb listing and while we're at it since you're here if you sign up with my Airbnb link you'll actually get $75 when you host your first day on Airbnb and guess what I'll get to be your airbn and B Ambassador Isn't that cool be Connected in a cool small little way and you get 75 bucks of which I'll expect you to Veno me half because I mean it

was free money anyway so it shouldn't really be a big deal for you to give me half or honestly 90% of it because if you still took 10% of it that's 750 that you wouldn't have made either way so anyways I'm getting tired we're going to wrap this thing up well kind of shoot we got so much to go I was like I'm going to knock this out in like 45 Minutes but when you're wrong you're wrong okay I have these broken out into two different steps but I think I can kind of combine them

we'll just say steps 12 and 13 is setting your pricing strategy and setting your automations now with your pricing strategy it's going to take a while to perfect this it usually takes me about 3 months to really settle on how much I'm actually charging for my Airbnb typically starting off small as I gain more Reviews I increase the price and I use an automated pricing software called price Labs which is basically Dynamic pricing this means that depending on the market supply or Demand on any given day they have a very fancy smancy very very uh

smart algorithm it determines the best price point for my place compared to all of my competitors that's honestly relatively inexpensive and it's completely automated Step 13 is going to be setting your automations for setting Automations I really like guesty for hosts and when I say setting automations I mean automating my communication like all of my messages so that whenever someone books my place I don't have to send them a message that says hey thanks for booking my place I have a software service that sends that out or they'll send them check-in instructions or checkout instructions

on my behalf and it helps make Airbnb a little bit more of a passive investment for me you can Also automate all the scheduling with your cleaners you can also automate leaving reviews for your guests and asking for reviews there's so many things that you can automate these days that really I mean it makes your job as an Airbnb host a lot easier again I use guesty for host that's ideal for people that have four or less listings if you have more than four listings they have a fancier version called guesty for pros o speak

of the devil I just got a $985 52 Inquiry on Airbnb okay step 14 after you've set all your automations you're going to assemble your dream team it's going to be hiring your cleaner making sure that you can find someone trustworthy that's going to show up make sure that it's clean by 4 pm when your guests are checking in you're going to hire your handyman very important person that you're going to want to have on your roster because they're going to come and fix things when they break Ideally the cleaners communicate with the handyman and

they can help automate that further for you A lot of the times I've gotten really lucky and my cleaners have actually been married to my handyman and that's really the greatest situation ever but that's probably not going to be the case for you so just find someone that's reliable it's nice to have a raw of people that you can just call because handymen don't always answer so if you could have like two Maybe three then you'll always have someone that you can call you'll also need to hire pest control because we don't like roaches or

mice in our airbnbs I've had it all I even had a bed bug like two weeks ago and then it turns out that it wasn't a bed bug it was a bat bug we spent $1,200 on the wrong procedure because we didn't even have B bugs oh man it was a whole thing it was a whole thing outside of pest control a good contractor would be someone to have On call too uh pool service and Lawn Service that's your Airbnb Avengers so to recap cleaner handyman contractor Pool Service lawn service and pest control so that's

six people I mean the pool service obviously like you don't want like a a hot pool guy if you don't have a pool well actually maybe you [Music] do I'm not here to judge anyway that's going to be your dream Team interview them you know really put them through The ringer like ask them questions and see what their process is and how they do things the cleaner out of all these is the most important though so but really I try not to negotiate with cleaners too much whatever rate they say for the most part I'm

going to pay it because a happy cleaner will leave your place cleaner and thus make you more money cuz you're going to have better reviews and people booking your place more because the reviews are good and Once you found your golden unicorn cleaner you can get them all set up on ceper to go that extra mile to make sure that your place is being perfectly maintained and well kept and well cleaned oh we've done it we've gotten to the last step which it's like not really but for the sake of this video it's the last

step and this is going to be operate and optimize okay you've listed it you've gotten the professional cleaners you have your dream team now It's time to launch like go live it's not going to be perfect all right you're going to have a couple hiccups might have some failures you might have some wrinkles that you have to iron out the first 3 months of your listing are so crucial because this is where you're going to be really just optimizing everything you're going to be leaning on your guests to tell you what wasn't perfect and it's

going to be on you to correct those things okay so a lot of People try to launch with a very perfect Airbnb it's just not going to happen you're going to miss something I miss stuff all the time all right I'm very honest about this on the channel like I mess up all the time guys the reason I can come on to YouTube confidently and then teach all my students confidently is just because I've done this for so long that yeah I still make mistakes but I learned from them very quick a bad host never

learns from a mistake a good Host is happy to have made the mistake so that they'll never make the mistake again Embrace failure my friends it's fine it's fine to fail because we do not become Airbnb experts from everything going right we become Airbnb experts from everything going wrong and then we learn from it and we get better okay so operate fail make mistakes optimize and if you do that you're going to be just fine all right take a small break breathe a little bit I know that was a Lot that was how to start

an Airbnb business that is the general overview of the business model and now that you have a general understanding of how it all works we are now going to start diving into some of the key Concepts that you need to know to actually start so this next section is called the five Airbnb business models that you need to know to get started today and my hope for this section is that it gives you a ton of ideas and it gets the wheels turning and The creative juices flowing over all of the different ways that you

can can actually break into this business which spoiler alert there are a lot so let's get into it we got this we good let's do this again welcome back to another episode of Rob built I'm your host Rob today we're going to I don't know let me check my outline real fastab all right so you want to get into the Airbnb business well too bad it's Too late oh my God Susan kid there are so many ways that you can break into the Airbnb business and today I'm going to give you five Airbnb SL shortterm

rental business models that you can get into we're going to be talking about the pros the cons and the cost associated with each model all in this video which is actually the second installment of my Airbnb series that's going to be going on all this month by the way in case you're wondering it's currently 1:54 p.m. new Milestone I'm recording during the day and I'm feeling mighty fine people so with that let's talk about the top five Airbnb business models and of course I've compiled it in cutie little PDF right here that you can download

in the description below and of course as always if this inspires you to become an Airbnb host be sure to sign up with my link down below so that you get $75 when you host your first day so first one here is going to be renting Your house this is probably the most common form of Airbnb probably what you've heard about but effectively you can buy a house and turn it into an entire Airbnb business as little as 30 days after you close usually after I close I try to get my airbnbs running within the

next week or two just because time is money and every day that you're not renting your Airbnb is another day that you're not making money there are a few different ways and Loan types that You can pursue whenever you're thinking about buying an Airbnb property and I'm going to talk about the different loan types not a mortgage broker don't legally hold me to anything contact your mortgage broker cuz they're way more qualified than me depending on which loan type you go with you can put down anywhere from 3 and a half to 20% and this

will vary depending on if you go with an FHA loan a conventional loan a second home/ vacation home or an Investment property they all have their own nuances and specific lending criteria so definitely get with your mortgage broker for some of the more nitty-gritty detail for example on an FHA loan you can put down 32% however that has to be your primary home that you live in so if you're going to pursue that option that would really only work for a house hack which we'll get into the next model here or if you were renting

it for a weekend while you were Out of town or something like that then you can go the second home/ vacation home route if you want and that would require a 10% down payment now a lot of the times people might have a second home that's just collecting dust 10 months out of the year or they only get to use it for 2 months or you might be itching to buy a vacation home in the Smoky Mountains or in j tree or in Big Bear or in Mammoth or Scottsdale or insert whatever city that you

love to Travel to and you want to own a home there but you can't really quite justify a monthly mortgage on it because you're not there enough in those instances you might consider a vacation home because you can use Airbnb to not only subsidize your mortgage but actually make money doing it too and then you can go full-on investment loan and that can cost you anywhere from 15 to 20% down I've even seen it up to 25% down now to put some numbers to this if you were going to Acquire a $300,000 house that would

cost you anywhere from $10,500 to $60,000 and that would be dependent on if your down payment was anywhere from 3.5% to 20% on a $400,000 house you'd be looking at a down payment between $14,000 and $80,000 and on a $500,000 house you'd be looking at anywhere from $17,500 all the way up to $100,000 as a down payment what I like about this is that there's a loan type for pretty much anyone who has some cash saved up with a Pretty low debt to income ratio but regardless make sure that you talk to your mortgage broker

and that you're adhering to their guidelines so second business model my microphone on oh I've recorded without my microphone being on way too many times and it's on if you're hearing me talk right now it's on second Airbnb business model type is a house hack and this is one of my favorites mostly because I feel that my first house hack Was the Catalyst for all of my financial success so let's back up a bit what is a house hack a house hack is basically when you own a home and you rent out a part of

that house it could be a guest bedroom it could be both of your guest bedrooms a den a bonus space I've even seen someone rent out a Tesla in the garage but you rent out these spaces to help subsidize your mortgage so to put this very simply let's say that you own a three-bedroom two bath house and your Mortgage is $1,000 and I'm just going off the first house that I ever owned which is $159,000 well you would live in one room and you could rent out the other two rooms for say $400 a piece

4400 * 2 is $800 yeah it's $800 yeah it's $800 that would be $800 that you could apply to your mortgage meaning you'd be out of pocket $200 to own your house now these numbers that I'm throwing out are in reference to a long-term rental if you Were renting it out to an actual tenant or roommate which was what I was doing when I first started out this was before I ever knew about Airbnb so let's run another simulation here let's say that you really wanted to supercharge the house hack model well if you wanted

to you could then list both of those rooms on Airbnb let's say you wanted to start small and list one of those rooms on Airbnb at $50 a night if you rented that room for $50 a day and you were able to Book it for all 30 nights in the month that would be $1,500 that you made on one room that's right Not only would you pay your $1,000 mortgage but you would make $500 doing this now let's say you got all brave and you wanted to rent the other room and you were able to

book that for the entire month that's another $1,500 so $3,000 total $1,000 mortgage you would be making $2,000 in a perfect month but Rob no one ever has perfect months you're just inflating the numbers Yeah yeah I get it I'm just giving you the best case scenario I know plenty of hosts and I mean plenty of hosts that have done this who have perfect months all the time I've had so many perfect months in my Airbnb career but let's just say that you were able to rent both rooms at an occup peny of 60% we

would multiply the perfect scenario $3,000 * 6 and that's $1,800 which is perfectly reasonable so even with a relatively lower occupancy rate you can still pay Your mortgage and make $800 and then you got to account for your expenses like toilet paper paper towels extra utilities that kind of stuff and honestly what I like the most about house hacking is that I think anybody can do it so many people come to me and ask me and they say Rob I want to get into real estate but I don't have any money I can't buy a

house and then I say well do you own a house and they're like well yeah I'm like house hack I mean duh This is what I recommend to anyone that owns a house that may not have enough money or borrowing power to acquire a new home you can get creative with this you can put an RV on your driveway you can convert a garage into a studio space or you can do what I did and build like a tiny house or a guest Suite or some kind of guest house in your backyard there are so

so many ways that you can get into a house hack and because it's your primary residence you could get in For as little as 3 and a half% down I have seen a lot of people that have gone out and bought duplexes Airbnb that duplex paid off their mortgage and made thousands of dollars that same month even in my my personal house hack when I was living in La I had a studio apartment under my house which was renting for $1,500 a month I had my tiny house in my backyard which can average out to

about $2,500 a month so that right there is $4,000 my mortgage is $4,200 so for $200 out of pocket I almost get to live in my $1.2 million Los Angeles home for free and since I started house hacking that house I've made between $160 to $180,000 in rents house hacking is already very powerful but when you plus it up with Airbnb the sky's a limit Airbnb business model number three glamping also known as glamorous camping which basically means that it's an elevated camping experience so instead of freezing out in Mother Nature in a thin vinyl

tent or digging a hole in the ground and pooping in it and then covering it back up you get to rent a very luxurious or premium canvas tent or vintage Airstream or tiny house on wheels or A-frame or yurt and you get to rough it in Mother Nature on memory foone mattresses and you get a mini fridge and maybe solar panels to charge your precious phones you can set up these experiences for people and guess what you can charge anywhere from $150 To $400 a night in fact this tent grossed $ 5,360 73 as you

can see I had a pretty booked July our profit margin on this is usually 65% so on this property our profit last month would have been $3,484 there's so many fun cool ways that you can curate and put together this experience for people and it's not just me there are so many people killing it with this business model like my student right here who made $1,880 In July on a couple of tents as well I'm just a proud dad over here there are so many ways that you can launch your Airbnb glamping business you can

acquire land if you want to do that if you already own a house you could put a airst stream in your driveway or a tent in your backyard I've seen people do that and make thousands of dollars that way or you might even have a family member that already owns land you can even lease land from someone and pay Them to manage it for you that's one of my favorite and Main business models the glamping business model if you're looking to stay Scrappy and you want to start small can cost you anywhere from $10 to

$20,000 to get started I have a whole glamping series that gets into all this stuff that you can watch after this watch this video and then you can go go watch that after but all to say10 to $20,000 is that starting point you can spend as much as you want after that I'm About to spend about $63,000 on two Dome setups and I'm going to charge anywhere from $2 to $350 a night hoping for a 8-month payback on that but you don't have to start there you can start small I promise and don't forget I've

compiled these five business models in this handy dandy little PDF right here that you can download in the description down below number four Airbnb business model would be rental art Arbitrage this is where you lease an apartment a home a Townhouse and then you subase it on Airbnb this is actually how I got my start I rented an apartment I bought a house and I didn't want to have to break the lease for that apartment complex so I just listed that apartment on Airbnb and I was making a profit of $1 to $2,000 a month

and I always say that if I lost it all tomorrow which I hope I don't I could always start over with the rental Arbitrage business model specifically because it's a lowcost way To get into Airbnb I know a lot of people that get into rental Arbitrage deals for less than $10,000 because they're usually able to approach apartment complexes that are running specials all the time like no security deposit or a low security deposit or a free first months rent to put this into perspective with my first Arbitrage deal my rent was $1,850 a month now

it was a 600t apartment and a lot of the utilities Were included except for water and electricity which came out to anywhere from $50 to $150 a month we'll just say $100 to keep it simple and then I think my internet was like $50 so roughly speaking it's been a couple of years my expenses for that apartment were generally about $2,100 sometimes a little bit more now in a slower SL average month this place was booking for $100 to $150 a night and the location was amazing the pool was amazing had Great amenities so I

ran at like a 99% occupancy for the most part so at 125 on a perfect month I was bringing in $3,750 minus my expenses of $2,100 I was bringing in about $1,650 on like a pretty good month not my best month not my worst month now I am going to say that I've had pretty amazing success with my units I wouldn't necessarily calculate your numbers based on 100% occupancy when I'm running the numbers to see if a deal works I'm Typically running my calculations at an 80% occupancy now there are a few caveats with this

model that I want to bring up if you're going to run with the rental Arbitrage model then you better 100% get the approval and consent of your landlord don't try to sneak when buy them been there done that you son of a it is not worth the risk do it the right way the other thing I want to caveat here is that rental Arbitrage is Great for building monthly cash flow but you're not necessarily Building Wealth in other words to put it simply it can get you rich but not necessarily wealthy and you're on a

12-month lease if your landlord decides to sell the building or that they don't want to renew then your business for that apartment is over and I want you to keep that in mind so I think it's totally fine to start off with rental Arbitrage but I would push you to dump your profits into homes that You can acquire buy own and build equity in over time all right we did it very last one the very last Airbnb business model that you can get started with is co-hosting co-hosting is whenever you help another host or property

owner manage their property meaning you'll have access to their Airbnb listing where you can message guests set pricing coordinate with the cleaning crew restock supplies and everything else that goes along with running an Airbnb Business and this is a great business model because it requires zero money no money from you at all in fact you get paid to do this you can charge anywhere from a 15 to 30% management fee of gross monthly Revenue so to put this into perspective if a place was grossing $5,000 and you were charging just 15% of that then you

would make $750 if you were charging a 30% management fee then you'd be looking at $1,500 a month now I know that may not Sound like a lot but imagine you were able to co-host for five people that would be $7500 on a perfect month if you had 10 of these going on a perfect month you'd be looking at $115,000 and I know that sounds crazy but I know people that make thousands if not tens of thousands of dollars with this co-hosting model fun fact I used to co-host a mansion in Calabasas a couple years

ago I was charging 25% to do that animate thousands of dollars doing that which at The time was game-changing money for me and that's it five business model to get started in Airbnb honestly this is what I really really love about Airbnb is that I really do think that there's an entry point there's a way for you to start your business no matter where you are in your financial journey and don't forget to download this guy which is a recap of everything that we talked about today and that's about it man it's 352 there's daylight

outside I think I might I might go for a walk or a bike ride or I might just go outside and smell the fresh air so let's get into the nitty-gritty here I wanted to break down what I consider a pretty middleof the road deal for me and kind of analyze what it would cost you to buy a $400,000 house take it or leave it but I think that this is a pretty average price point for most people looking to get into the game you can plug in play my formula here for a 200 300

400 5 6 7 $800,000 house it's all relative now I will say that my POV for me personally I'm not going to be acquiring properties that are less than $500,000 these days and that's for a whole variety of reasons but typically I'm looking to acquire an Airbnb that's in a really great location or has High bed bath count so for the most part part I'm looking for airbnbs these days that have at least four bedrooms but now I'm even narrowing my own criteria here to Five bedrooms or more because the more rooms the more people

you're able to sleep the more people you're able to sleep the more money you can charge and so for me I'm just always chasing higher returns but with that said there's no real r or wrong here ultimately it's going to come down to what you're comfortable with budgetarily so that's why I want to start with $400,000 here because I think that's an achievable price range in many parts of the country All right well if you haven't noticed yet I'm not in my typical Studio because I'm back in California now and all myu is in storage

so just jumping out here really quick because the lighting is way better you're probably going to hear like 18,000 dogs barking in like cars every 5 Seconds cuz it's la oh dude tubular so let's look at this deal as a home per airplane Birds German Shepherds ADHD just on fire so let's examine this deal as a home purchase and let's talk Through the two main loan types that you're going to come across so there's what's called a second home loan also known as a vacation rental loan this only requires 10% down it also requires that

you stay at the property for a portion of the year so if you wanted to buy a home but you couldn't justify the yearly expense of a mortgage because you're only there for part of the year you can list it on Airbnb and not only subsidize the mortgage but of course Make money now obviously I'm not a mortgage broker so talk to your mortgage broker about the different stipulations and everything like that but that's going to be one of your main types of loans to acquire a short-term rental 10% down in that instance on the

flip side of this you can do an investment loan this is typically a commercial product and it's going to require anywhere from 15 to 20% down 20% down is definitely the more common of the two but right now Now the loan that I'm personally working with is a 15% down but for Simplicity sake we're going to say 10% for a second home loan and we're going to say 20% for an investment loan so assuming you buy a $400,000 property your down payment with the second home vacation home loan is going to be about $40,000 now

if you want the 20% investment loan route that would be $80,000 and if you use a 15% down investment loan then that would be $60,000 I guess I could have done that In order and ret spec but we've come too far to do that now so your startup cost just from a down payment perspective is going to cost you anywhere from 4 $ to $80,000 on a $400,000 house so let's jump into my handy dandy spreadsheet here before you ask yes it is available for download I'll leave a link in the description down below and

let's just start inputting some of these metrics that we were talking about so the cost of the house let's put it as $400,000 and down payment let's just say we're going to do a second home loan on that so our down payment is going to automatically adjust to $40,000 now your next set of fees here are going to be your closing costs a lot of lenders will do a 1% origination fee but I have seen it up to 2% and then you have your escrow and prepayment fee so this is going to be if you

pay your taxes up front your property insurance up front and all that jazz so typically for me to Like estimate this a little bit more accurately I'm usually putting that at a 3% then we're going to get into remodel now usually I a lot like $10,000 minimum per property just cuz I know that there's going to be stuff that I want to do like paint walls maybe I want to rip out carpet maybe I want to do new granite countertops perfect world though we spend less than $1,000 because I'm usually these days looking for something

a little bit more TurnKey now when You're getting started out I would definitely recommend to find something that does need a little bit more work where you can add value because you're just getting started you need to start building Equity as soon as you possibly can because you're starting out and every little bit helps me I've got 14 different properties I make about $25,000 of Airbnb profit every single month so I've earned the luxury of not having to grind quite as hard as I did When I was first starting out then you'll see here I've

got what's called a setup fee your setup fees are going to be a couple of things this is going to be your flights to get to the property rental cars U-Hauls food and this is going to be all your cost associated with going to your Airbnb for a week or two to set it up and obviously it can start to get up there if you go with your spouse or your business partner so for me I'm generally allotting $3,000 at A minimum and that is if the property is within 8 hours away from where I

live if the property is on a completely different Coast for example like if I'm in California and I'm buying a place in Destin Florida which I currently am then I would bump that setup fee to about $55,000 and another thing to keep in mind is whenever you're connecting your utilities you're going to have different deposits associated with that too so if I'm looking at a $3,000 setup fee for Flights food lodging like all that type of stuff I would probably a lot like another 500 bucks for utility deposits so we'll go ahead and shift this

here to 3500 bucks and then Furnishings are really going to be the big kicker I'm typically allotting $10 a square foot at a minimum that's usually the price point that I advise people to start with well no not advice none of this is advice not a lawyer not a mortgage broker not an adviser of any Sorts you'll have to excuse my friend he's a little slow anyway $10 a sare foot is usually what I advise my host Camp students to start with obviously if you want to go a little bit more premium like I'm going

these days I can pretty easily spend from2 to $15 a square foot I've even spent up to $20 a square foot so on a mid-range deal here $400,000 let's say that it's about 2,000 ft time $10 a sare foot that would cost you roughly $20,000 To furnish now again if you want to stay as close to that $10 a square foot metric I gave you I'm going to leave my shopping list down below which I really do think it's pretty budget friendly for anyone starting out and final thing to keep in mind here will be

your legal fees this will be if you want your attorney to assist you with forming an LLC and transferring your property into the LLC and all that kind of stuff after doing this several times this typically Comes out to no more than 1,500 bucks come on cars come on cars so you can see here if we were going to buy a house for $400,000 after all of our different costs and setup fees and closing costs down payments remodel all that kind of stuff the cost to start an Airbnb with a vacation home second home loan

would be about $78,000 now let's walk this up a little bit if you wanted to do an investment loan so for me I'm getting 15% Investment loans right now so that's going to change the down payment to $60,000 like I mentioned earlier it's going to cost me $98,000 in this specific instance to start an Airbnb now if we wanted to go full investment loan which is a lot more expensive and not something I really want to do then it's going to cost me $118,000 to start this you know faux Airbnb and again if you want

my little house buy calculator here it's free I'll Leave a link for you down below so as the sun sets and I lose all l um I guess we'll wrap this up how much is too much to spend on an Airbnb well sadly that is a pretty relative question see I don't really mind spending $500,000 or a million or $1.5 million which I'm currently doing on a house in Destin and it's by far the most expensive Airbnb I've ever purchased because to me It ultimately comes down to what the return is see ultimately I'm measuring

the Success of my short-term rental based on a metric called Cash on cash return I was going to spitball what this was cuz I do know what it is I don't want the Sharks coming after me in the comments so a cash on cash return is a rate of return often used in real estate transactions that calculates the cash income earned on the cash invested in a property so this means that if you invested $100,000 into your property oh farts come on don't do this to me right Now there we go all right smart techn

all [Music] right okay I'm going to finish I'm going to finish the video I'm going to finish the video like this I don't care I'm going to let me re why balance this this is real guys this is this is real life right here it's so bad that it won't even let me set the the wi balance all right I know why balance it is so this means that if there's an airplane in the Sky and a very bright light in your space and you invest $100,000 into a property and in that first property your

cash flow and your profit was $50,000 you would divide that 50,000 by$ 100,000 your cash on cash return can you even see this would be 0.5 a 50% cash on cash return which is very very good now my bare minimum is 20% like I will not look at a deal that is under a 20% cash on cash return which is about two times the amount that you would get on a long-term Rental or anything in the stock market on a normal [Music] year so for me a 20% is like my bare minimum but typically I

am looking for deals that are 40 50 60 70% ideally 50 to 75% obviously anything more than that would be great too that's tougher to find these days but the reason I'm usually looking for a 50% minimum is because when I'm working with investors and I'm splitting those profits and that Cash flow with them and I need them to have a minimum of a 20% but there's some other costs associated with those different deals like I charge a 7% management fee so after all fees and everything like that I really need the cash on cash

for me personally to be a 50% now with that said I hate I still hate the way I look right now bony I can't even hear you it's just noise coming out of an ugly scientist so frustrating so for you it's really going To come down to your preference your investment style for some people a 15% return is amazing I mean it is like when you compare it to all other investment types of 15% is still an absolute win but when I'm teaching and I'm working with students I really do want people to hit as

close to that 20% minimum as possible so My Philosophy these days is I spend more it's usually going to equate to a higher return and the thing that I'm really thankful about with my Short-term rental journey is that things are going so well for me and I've got such a well Diversified portfolio that pays out pretty well I can spend more and take way way bigger risk than I used to when I was first starting out for example I'm buying a place in dtin Florida for $1.4 million I know I said 1.5 earlier but I

am doing some remodeling I'm going to be spending a lot of money on the furniture that's really scary even for me I mean I know What I'm doing I'm an expert but $1.4 million is like you know even for someone at my level it's like a scary investment however after running all my analysis and my comps and everything like that at a minimum it should gross $200 to $220,000 after I'm done with it and fixing it up and doing all the different things that I want to do in that Airbnb I'm hoping to be closer

to $300,000 of gross revenue every single year and that Friends is life-changing money one final thing that I forgot to mention earlier was my photography cost I typically spend between $300 to $500 on that I just lump that into my Furnishing budget or my setup cost I don't have my own line item for that but just keep that in mind but that's it that's how much it cost to start an Airbnb adjust accordingly use my spreadsheet calculate what it would cost to start at 200 300 400 500 $600,000 plus Airbnb and make The numbers work

for you run your numbers run them again and really ask yourself if it's something you can afford the last thing I want is for you to get into an investment that you can't [Music] afford so basically here's what we're doing I have not cherry-picked any of these deals I'm having them sent to me so I can have a blind unbiased perspective so we're going to analyze a few properties here pretty quickly just Know that just because I'm analyzing like these prop they're random all right so I'm not saying like invest in these towns like don't

feel like oh my gosh he's he's giving us a hint here it's a see just completely random from all over the country okay got it cool if you're watching this far you like the content I think why don't you analyze the like button down below by clicking it and turning it blue all right thanks all right let's hop in so many of you all Know that I have a little fancy smancy model here and this is really what I use to analyze most of my properties it is available to download for free so this is

basically where I input all of my data it's this easy you don't have to over complicated I mean again there's no right or wrong here everyone has their own personal preference and style for analyzing a deal I this spreadsheet thousands of times and it works just fine okay so let's take a look at this Guy so this is in Toby Han Pennsylvania all right a bit of a cutie here a little bit of a I don't know what you would describe this style just Craftsman T door I don't know okay so for the most part

I would probably not remodel a place like this I think they've obviously done things throughout the years I like the marble countertops you know for the cabinets obviously like they could be nicer but I also wouldn't drop $10,000 on a kitchen remodel on a Place like this just given the price point so for the most part I would say what is that I would say what is that oh that's the kitchen counter okay I would change that for sure all right so barring that kitchen countertop I would pretty much keep everything the same the only

thing that I might do on a place like this is paint the walls not my style of bathroom uh but a good you know shower curtain could probably cover something like that up paint the Exterior of the house so let's take a look here it's white and honestly a good power wash if you just want to like save cash so minimal fixing on a place like this and that's really what I'm looking at whenever I'm deciding on an Airbnb property I am willing to do a little bit of work but I don't want to do

too much work I don't want to go into a full flip necessarily there's a lot of money or a lot of value to add and it's going to be like a six figure you know uh value ad Then sure I might consider it but for the most part especially at this price point of $285,000 I'm trying to spend as little as possible to get this Airbnb up and running so for me what I'm looking at in my scope I want to do things that are very light so this will be painting walls painting the house

changing the floors and that is about it I don't want to do a kitchen or a bathroom remodel for the most part I'll skimp out on the Bathroom I'll just put like a shower curtain to cover up like an ugly shower I try to spend less than $115,000 on a deal now I will say that I get a lot more in-depth than nitty-gritty into these Concepts in host camp and I actually show you like like number for number how I'm doing this but I wanted to give you a quick overview of how I'm using the

airdna platform to really level up how I analyze properties so next thing we're going to do is we're Going to actually pop this property into air DNA so basically what you're going to do here is you're going to pop in the address and then you're going to make sure that the bedroom and bath count is correct so we can see here on Zillow that it is a 44 and it's 2200 ft so my rule here is that I'm willing to put at a minimum mostly maximum two people per bedroom so that's like two beds two

people per bath so right there that's going to tell you if there's four Bedrooms I can put a minimum of eight people in that house especially if it's 2200 ft but my other rule to counterbalance this to make sure that there's like a quality to your shortterm stay is that I only let a maximum of five people per bathroom stay so that means if there's four bathrooms rooms then a maximum of 20 people could theoretically stay in that short-term rental however as you can see this short-term rental is 2200 ft so we know That 20

people can't fit there so for the most part I would say this place can hold a minimum of eight people but probably a maximum of 12 now every single space is different so obviously your mileage may vary so like I said here we're going to go four bedrooms minimum of eight people and that actually comes out $106,000 so I like to walk it up here and go to nine guest so if 8 through 12 I'm going to check out what every single One of those brings so nine guests is 105 10 guests is 105 11

guests 105 so there's not really going to be a change in income going all the way to 12 people there's a little bit more I guess on the 12th person you get 106 but if you recall on eight guests we're still going to be at 106 so there's not going to be much of a financial incentive to stick four more people in there so for me I try to sleep the least amount of people and yet be the most profitable and in This instance eight people is technically the most profitable and even if like 10

people was $110,000 yes that is more money technically but I'm also going to spend more money in Utilities in wear and tear in sheet and towel Replacements so there's a little bit of a sweet spot here now one of the other things that I want you to keep in mind with air DNA specifically and this goes you know with all the other metrics tools out there is That they're an aggregator of data basically right they're using algorithms to determine what that nightly rate is what the occupancy is going to be and it really just gives

you sort of an average of what other people in that market are making so for me whenever I'm popping the address into air DNA I really don't get too excited or too bummed out by what that number is because I know that it's an average so I know that if it's a really high number well for me on Average I perform better than the typical host so I know that I can always beat that number but also if it's really really really low and I'm looking at different comps and other people in the area and

I see that they're charging a lot of money then I know that Airbnb has just kind of given me that average or that median price point and I can likely just to crushed that number so really I would not live or die by this number I would use it as an initial feasibility Test and there are a lot of other tools here that we'll get into here in a second but for the most part obviously $106,000 on a $285,000 property is amazing but now we have to actually go in and verify the comps now there

are a couple ways we can do this typically from this point I'm going to actually go to airbnb.com and I'm going to look at Toby Pennsylvania and I'm just going to leave my dates open here because if you find if you put In specific dates Airbnb is only to show you places that are available for that specific date range so always leave that blank and then for your number of guests I try to find places that accommodate let's say for in this instance eight now you can put six or seven if you want but I

want to find comps that very closely match this house that I'm considering buying which honestly I might by the end of this video all right great so now we want to go even deeper into the filters Here go to filters go to beds so we know it's a four bedroom four bath and now it's going to narrow it down even more then what you could really do you can actually copy and paste an address into Airbnb great so you can see right here that's where it is so now we're going to look at places in

the area and I try to find places kind of in the kind of the radius here if you will there's a listing here for $543 there another listing here for $563 A night 1,600 a night 1643 $713 a night $1,700 I don't understand I've never heard of this place maybe this is like the next great big secret in Airbnb that I'm just divulging to all of you let's take a look here so this sleeps 18 people Poconos oh it's by the Poconos that's why Poconos is a very very popular place now when I'm actually running

an analysis there are a couple of things that I'm looking for as you recall I try to size myself up against Similar competitors so if this house is significantly nicer than the house I'm considering buying I have to take that into consideration when I'm analyzing a deal so this house for the most part it's hard to get a read so let me take a look they have a hot tub so obviously there's an advantage there in a deck interior wise I would argue that they're probably not that much nicer I would say it's pretty on

par in fact it's a very empty house so already I'm like okay This is a great place to jump in they've got no art they've got a super cheap mirror here and they've got like you know like paintings they got from TJ Maxx but you know nice stainless steel appliances and everything like that so next thing I'm going to do here is I'm going to actually look at their calendar and see how booked up they are right now it is January 18th and we can see here that really for the next month or so their

first booking comes in they've got 2 days booked for febru February March is wide open so not only am I seeing if they are a similar quality but I also want to see their ratings and how many reviews they have because if they have no reviews then I you know they could have just made that listing a long time ago and never actually booked so I'd like to see something that has at least 25 reviews that would make me feel better 50 makes me feel like really great if a place has 50 reviews and I

Know that it's running pretty smoothly as an operation this has 81 obviously the more reviews and the more people with a lot of reviews the better because then you know it's a relatively established area 81 for me checks the boxes 4.77 rating so they're booking but people aren't loving it because there are things that they can probably work on I have a couple properties with similar ratings and it's not the end of the world so jumping in here uh I want To start to see now I know the Poconos is probably a Winter Market if

I if I remember correctly so I just want to see how they're booking out for the next couple of months and honestly I don't really see much like they're completely open but what's interesting is that they jack up that price to $1,400 a night $925 a night and one thing that I note here is that they're charging $250 for cleaning but for the most part I don't see a lot of bookings on this place so That's interesting so next thing that I want to go is like all right they don't have a lot of bookings

so are they an actual full-time Airbnb so one thing I'm going to do here is I'm going to jump down to the bottom and I want to just like look at the reviews and see how recent the reviews are so Tim here left their review January 2022 then their next review here was November November October August August I'm kind of unclear if it's a full-time Airbnb Rental could also be like their personal home that they rent out on weekends or a second home vacation home something like that so this to me is not really like

great proof but that's fine that's just one of many listings that we're going to look at then we can jump into this similar quality okay it's 24 reviews it's just under the 25 I'll allow it for the sake of this video 4.5 here right in the neighborhood again it's a nice big house and it's cute but for the most Part I would say from a quality standpoint yeah pretty on par it's got a nicer bathroom nicer tub and all that kind of stuff but definitely not too far off from my property well you know my

student to be property I guess okay so now let's take look they're charging $561 a night pretty similar price point so we can see here in January they are book they've got two nights booked they're charging 626 a night so that's kind of an interesting thing here at That price point you don't have to really book that many days to really rake it in from a cash standpoint so looking at February here 1 2 3 4 5 days is what they have booked so they have a minimum of 5 days booked here because of these

little gray out days here I think it actually might be a few more days let's just say even five here five at $561 a night is 2,800 bucks they've already booked $2,800 at a minimum for February although I think it's a little Bit more March April May June they have a couple oh okay they have a couple here in May too few days uh booked in July all that kind of stuff that's okay like I would love for their calendar to be a little bit more booked up not a big deal because you know even

for me Cita kjo is a really really great performing Airbnb but a lot of my bookings come in last minute so that could be the case here but overall I'm not seeing a super strong calendar do want to keep in mind Here that it is a 4 and a half star rating so perhaps it's just the rating is scaring people away but let's take a look at what I call the review population which is you know are people booking this with any recency so we got January 2022 good January 2022 December 2021 December 2021 December

December so looks like they do book up a decent amount I couldn't really extrapolate and tell you how much they're making because they just don't have enough bookings but Right now it could also be like the slow season in that area but one thing I do want to see is what do they charge in July so let's take a look here they got a couple days booked here so let's see in July this price actually goes up to $661 and then they can hold 16 guests so I want to see if that price jumps up

at all no it does not okay so that's that's pretty much the price point now we're going to jump into the next one here you so you remember what I was talking about Earlier I like to see how my competition is doing and how I can beat them well we're looking at 4.47 4.5 something the other one is 4.77 I think just kind of gauging the market here we could probably stay step in and I perform these hosts in a couple of different ways so let's take a look at the house again no professional photos

I don't even think these other ones had professional photos surprise surprise no I mean it's a fine house it's a fine House I guess um again interior not really like popping necessarily they definitely love the sepia filter on their calendar okay fine kitchen that's the only real redeeming quality I see so far double fridge I mean they can host a lot of people as my guest so let's actually take a look is that a double kitchen you know 18 beds makes sense they can host 16 guests it's nine bedrooms four baths I can see why

it's $1,600 and honestly sad to say they Might even get that price let take a look so just looking at February for example 1 2 3 4 5 let's see what their price actually is in February though, 1500 1,500 1,500 okay so looks like their price is pretty consistently $1,500 so just in February alone they have made 1 2 3 4 5 * 1500 7,500 bucks so if they just book five more days in February AR they would make $115,000 and I'm pretty sure they're probably going to book those other 5 Days cuz just right

now they've got another day here booked in January as well and then in May they've got 3 days booked and again like I don't expect this to be completely full just because of how expensive it is and it s super nice but so far that's like a pretty encouraging like number right there moving on here new huge 14 acre 5,000 squ ft estate heart of the Poconos $713 a night and it looks like they've got yeah one 2 three 3 days booked here so 21100 bucks just in the end of January February 1 2 3

4 5 a lot of people just booking five days in February that's pretty funny at 600 bucks a night I do want to see let's see they can hold 14 guests I want to see if their price changes with that goes up a little bit 663 then we can start to see here in May it fills up and they only book Out 3 months in advance and it looks like either their June July and August is booked or they're staying there Personally my guess is they probably stay there during those months I'd like to see

a little blue heart gem on here but seems like it's pretty rare So now let's go look at the review population it's January right now they only have two December bookings four nove okay they got a lot of November okay so it looks like they they might have just had a really big reservation in December they might have stayed there themselves here's where we get into like a really Nice house five stars 22 reviews let's take a look I mean like this photo like dude just pay like a neighbor to go out and take a

photo on a camera made after 2002 all of these photos are way better why not just roll with that pretty bold wallpaper but I do I actually do like this so this place is really nice really nice property I got to imagine this is pretty expensive let's take a look at how many bedrooms it is as well it's a 10 bedroom 5 and 1/2 bath they charge 1,700 bucks probably worth every penny out there and as you can see here pretty empty but then in June July August it really just absolutely picks up 2200 bucks

a night $2,100 a night $2,200 a night okay so it looks like just in those three months right there they have booked 1 2 9 10 11 54 nights in 3 months so 54 * 21100 I'll take the low price they made $113,000 just in those 3 months so what I'm trying to do here is just understand If the people in the neighborhood are actually making any money now if you've noticed that all of the different listings here weren't really booked up for the next couple of months and that's like very Troublesome for a lot

of people that are new to this because they're like oh my God no one is booking at a high price for January February what do I do and what I try to remind people is that there's such a thing as seasonality in this business and it's Really possible that this area this is not super popping for January February March maybe even April so there are a couple ways that you can assess that let's take a look here let's go back into airdna let's take a look at the seasonality here for this property for Toby Hana

best month is July which is pretty clear because that one place that we just looked at was completely booked for July for the most part but then you look at this little graph here for daily Revar and you go low to high it goes blue for low red for high and it kind of tells you what the seasonality was for the last 12 months so if you look here we'll see that December you can see like for the most part Sunday through Thursday same thing with October that's pretty blue so that just tells me that's

not like the popping month and then you can also see here January lot of blue February mostly blue except for this one week right here March pretty blue so These are just not going to be the busiest months here May April March February Jan like that is all very very blue so it makes it very difficult to comp this out and extrapolate data because we're actually comping it out in kind of like the deadest season of the year but if you take a look here June through August are really the heavy hitting months so when

we looked at that really expensive property that was making $115,000 in those three months that's because that's like their big hitter months and pretty much after that they probably make some money in the other nine months Maybe cover expenses maybe turn a profit most of the profit really is going to come from that chunky chunky part of the year that's going to be very similar to beach properties too where you know most of the money comes in those 3 months too and then it's pretty much a ghost town every other month so Now we'll hop

back into the rentalizer on this guy now one of my favorite tools here and I think this is a new addition to the rentalizer is that it actually shows you how much the actual rental income and how much your gross revenue has grown in the last two years so you can actually see in January of 2020 if you would have ran this through the rentalizer it would have told you that you would have made $55,000 and then if you kind of follow The trajectory here if you were to run it into the rentalizer on every

single one of these months it keeps going up until we get to 2021 here then it really starts moving and you can see here in August of 2021 it peaked at $109,000 and that's how we've ended at this $16,500 estimate now this is always going to be moving because obviously air DNA is aggregating new data in the pandemic and seasonality and all that kind of stuff has really just changed Rates so it helps give you a bird's eyee view of how much the not appreciation but how much the revenue is growing year-over-year you can see

here in the last year it's grown 23% meaning if you bought it today versus last year you would have made 23% more this year than you would have last year and that's a really useful tool here in airdna that helps me assess if a property is worth investing in CU yes I do want it to make great money obviously but I also want to Just know that that area is growing Year over-ear from a revenue standpoint is it appreciating are people traveling there more our hosts charging more money and making more money and all of

those different things factor into if this investment is worth taking or not and then same thing here a seasonal revenue forecast so you can just kind of see how the revenue changes month over month and you can see July here $12,600 is what you can expect on this Prof property Versus a slower month like May where it's 7,300 bucks dang the lowest month here being September 6,700 bucks just gauging that property I know that for the most part we are going to turn a profit every single month but obviously the summer months are the Home

Run months now next very useful tool here on airdna is that it actually has the top comparison properties so we'll actually pull five comps in the area that sort of match up with the criteria of a Four-bedroom four bath sometimes it'll take like a four-bedroom three bath a three-bedroom 3 and a half bath just depending on what comps are in the area and it will give you the five top performing airbnbs which I think is super helpful and you know they're not always going to be Airbnb like it sometimes it's both Airbnb and vbo but

you can just take a look here that the revenue on these places $119,500 $199,000 obviously that's probably a newer listing so they don't have much information on it but $103,000 $33,000 probably you know obviously like the data is not always going to be perfect that's pretty low or that host is really really bad and then this one right here that's a 5 EDM 3 bath is $151,000 so now what I want to do is I want to hop in to the Airbnb listings here and just kind of take a look take a Look at how

they're booking and obviously they're making a lot so I also want to know can we match them like is this achievable for the regular Boke if you will so this place definitely cute but honestly like they got textured walls and ceilings but they did a really tasteful job with the actual interior design nice floors really great backyard setting beautiful Decor they have taken lemons and made lemonade out of their house so this house house pretty much Perfect like if I were buying this wouldn't change a thing so now I want to see even for a

place like this that's a top performer and I want to see okay on this place right now we are in January I can expect them to be in the $87 to $8,900 range so let's take a look at their calendar here $31 that's going to show you the lowest price point on their calendar you got 99 reviews of 4.93 so really just an awesome comp to be looking at and we can see here that Their January is fully booked up meaning that just on the final 12 days of the month they have made well it's

actually 13 * 301 they're at $3,913 just for the last 13 days of January if they booked out the entire place at even the low price point of $31 then they would have made 9,300 bucks which is you know not too far from this $8,700 forecast that air DNA put in here I don't want to extrapolate because I don't know if they booked the first Couple of days here so let's take a look at February February has 28 days and they only have 4 days unbooked so I want to see what prices they're booking these

at let's so let's see $395 and that's just that one guest and then they've got six guests let's see if that increases the price okay we got the blue diamond here very very nice to see and then we can take a look here see if the prices change 238 so looks like during the week they're booking at $212 in April 263 288 So really I guess that's their weekend pricing maybe the 300s yeah 389 okay so let's take an average then including let's say it's like 250 to 275 so just looking at their February though

let's multiply let's see 24 times let's call it 250 just to be conservative here they've made $66,000 so far for February they've got four more days where they can still make a little bit more and $6,000 obviously I'm extrapolating a bit here I'm moving quickly because it is YouTube but 8,900 bucks so I'm off a little bit but also they might have charged more for those weekends and everything like that then we get into March we see that they are starting to book but remember March April May those are all kind of dead months and

then we get into June and July and this is really where those prices I I imagine are going to start going up a bit 430 2 take a look at their weekend rate 578 let's let's take an average day average Is going to be 4497 and we know that for the most part July is probably going to book at a 100% occupancy so 497 time let's call it 30 days $14,900 so let's take $497 * 30 days $4,910 and then we know that for the most part on their peak season they're booking pretty close to

100% but maybe not quite so we'll multiply that times three in three months they will more than likely make around $44 to $45,000 so there's a lot of different ways to Extrapolate this obviously but now I want to go into the review population just make sure January January December December December December December December December December December December December December December wow they hosted a lot of people in December so this is what I like to see I like to see a pretty populated set of reviews here that show me that people were booking this place

even in the slow season so again this place is really Nice Definitely nicer than the place that we're looking at but I can see how a place like this is making $120,000 then we go into this place right here they charge $421 a night cell phone photos like you it's very dark these photos are very bad this is very cabiny this is like very Poconos if you will 96 reviews 4.98 people like it looks like their January is a little slow but their February seems to be doing okay they're about 50% booked 470 Bucks rare

gem meaning that they're probably booked 90 to 100% of the time I want to Jack this up to eight guests I want to see if their price changes no so they are pretty much consistently booking at 470 in those slow months now let's jump over to July looks like based on this they only booked 3 months in advance personal preference I these days I'm booking about 6 months in advance but that's fine so let's take a look here what they charge in June $450 looks Like they're not greedy they could definitely charge more if they

wanted to then we're looking at $500 a night in July so they actually don't jack up their prices too much according to seasonality from what I'm seeing cuz even during like the slow months here they're charging $450 at night they're leaving money on the table guys that's what I like to see because all they would have to do is take professional photos with the right pricing strategy a Place like this could make so much more money so right now we're looking at this it makes $105,000 I believe that I believe that based on what we've

seen now we'll take a look at this last one right here okay so 4.97 65 reviews new I don't know if it's that new if 65 people have stayed there they're charging 291 looks like they've got a couple bookings here in January I want to confirm that 291 is actually what they're booking see that's 333 let's see what their weekend pricing is 4 60 cool looks like they're relatively open I mean they don't look like a premium property to me there's a lot wrong with this place starting with the photos oh my gosh we need

to get into this Market guys just let's take some professional photos we can win we can beat these guys cute house though has potential from an interior standpoint though about on par with the house that we were looking at they've Even got popcorn ceilings old oak cabinets so really not too much special about this house other than the fact that it can hold 16 people which is probably why they can make the money that they make now it says that they Book for $151,400 a year seems a little high to me but maybe I mean

I don't really know airdna might know more than me let's just take a look at their July pricing here 517 555 then I want to go to their slow season really quick 351 so Throughout the year it looks like their average is like $425 just off the top of my head so $425 at a 80% occupancy gives you $124,000 a year this place says that it's $ 15 1,000 so obviously that's a pretty big deviation but we can see for the most part that I think $106,000 is not really that outrageous for this property so

we've analyzed the heck out of this property I don't know if we have time for three properties Like I thought because I'm relatively certain that just analyzing this one property it's been at least 30 minutes so we're just going to do one property today but now I just want to actually jump into my model and show you how I would run an analysis on this this property cost $285,000 200 $85,000 now as far as a down payment is concerned that's going to depend on what loan type you go with I'm a really big Advocate for

second home loans and vacation home loans which allow you to put 10% down estimated closing cost on this to be very conservative I'm going to put 3% remodel like I said there's not a lot that I would do to this place but considering that I did want to paint it and do a few little things I'll put $5,000 in here setup fee these are all of the different costs associated with setting up an Airbnb so for me this is going to be like flights rental cost s Meals all those small expenses that kind of add

up while you're actually in the process of Furnishing it and doing all that kind of stuff so right now I'm in the middle of a country it's about a 3 4our flight so I would put about $3,000 for that if I was on a completely different Coast like California for example flights would be more expensive I would Jack that up a little bit but we'll just keep it a nice even $3,000 for now we're not going to spend $75,000 On Furnishing we're going to spend about $10 per square foot which is $22,000 that's what I

try to stick to for the most part I always end up splurging but iach students to budget for $10 a square foot if it was a more premium and luxury place I'd spend more but it's not so we're going to try to keep it hopefully lower than $22,000 seller credit if you can negotiate any kind of seller credit or anything that's always going to be nice but let's just Say that this is a very cut and dry deal so we'll put zero so estimated cash to close is the total number Furnishings closing costs uh down

payment setup fees legal fees all that kind of stuff this would be like what my attorney charges me for like llse formations and any legal work that I would need so total we would need $67,800 to like close on this property and get it set up on Airbnb so right now interest rates are fluctuating I would say you could probably get like A 3.5% on a second home loan depending on your credit so I don't think there was an HOA on this place if I remember correctly oh it's an annual HOA fee of $155 so

I guess like 15 bucks PMI payment all that kind of stuff so your monthly payment on this is going to be $1,618 and then we're going to go back to air DNA here it's going to say 461 a night at a 63% occupancy so 461 a night at a 63% occupancy now there are a few other costs here that we're going to go Through we got the booking platform feed so this is a 3% that Airbnb takes and then we've got fixtures furniture and Equipment replacement I kind of calculate that into the maintenance feel free

to pad this however you want to I typically don't spend more than 4% on maintenance every single year I've just been very lucky that's been my yearly average for the last four or five years that actually that's no that's not true that's been that's a lot higher than my Yearly average but for those of you that like to play it I would put between 4 and 10% really just depends on how much you like to pad your estimate here and then if you have a management fee this is really if you want to pay a

management company to do that you can put 15% 20 25 30 that's going to be pretty standard for a management company but here at the raw build Channel and in host camp we talk about self-managing because that's what we do guys we don't Pay people 30% to manage their short-term rentals because that is a ripoff not going to pay for that just kidding that's not a ripoff it's you know your time is worth money I guess just learn my ways okay and manage it yourself and work your way towards Financial Freedom okay so with all

of that said there is one final thing that I want to talk through here this is a little bit out of order but let me talk you through this so percentage to Partner if you're partnering up with an investor or with a partner you can calculate what your return is going to be based on that percentage that you all agree on so we'll just assume you don't have a partner so we'll put 100% here and then we're going to also make a few other assumptions so because this is a four bedroom 4 bath I would

imagine that most cleaners in the area I'm going to say that they're going to charge you between $150 to $200 per clean so we'll Go down in the middle there and typically I'm hosting between 8 to 12 stays per month but in places like the Poconos or the Smoky Mountains would honestly be closer to like six or seven so I'm just going to put eight here because based on my experience these types of markets end up being longer stay so I think eight is a pretty fair number for this specific deal now I do want

to talk about a few things air DNA when they're giving you this like gross Number this is not your net this is not how much you're going to make this is how much you are going to receive in bookings technically speaking if you go into the a DNA platform and their FAQs this number actually does include cleaning fees now I don't typically include cleaning fees in my personal estimates or in my analysis because I tend to outperform the airdna rentalizer but for you all that are just getting started out if you want to be very

Conservative with how you're running your numbers I would make sure that you're factoring in cleaning fees into your overall return which you can do that here so depending on what price you want to adjust you can say hey I think I'm going to book 10 stays a month so this is all sensitive and this eats into your operating profit right here here so you can see $50,900 now keep in mind that you needed $67,800 to purchase this property get it Furnished get it set up so that means that your cash on well this is this

is a pretty high one but your cash on cash on this one is going to be 81.37 meaning that your payback in months in 14.74% now your return is going to be 68.9% basically 69% nice anyways uh and then you can also say I don't think I'm going to book for $461 a night I think it's going to be closer to $300 a night based on that Property and I think it'll be closer to 55% after looking at similar comps great you can kind of adjust and play with this model and it will help you

see how much you can possibly make now I think that's pretty low I actually think it would be closer to like this 300 to 375 number and I think it would be probably closer to 70 to 80% I aim for 80% but even here you can see at $350 a night at 70% occupancy we're looking at a 46% return now for me my bare minimum to Really consider a deal that I'm going to make an offer on is I want a 20% cash on cash return that is about twice as much as you're going to

make on a long-term rental and about twice as much as you're going to make in the stock market on most years so for me the fact that I can beat long-term rentals and the General stock market by a factor of 4.6 is pretty enticing because this deal still works at even a 65% occupancy it still works at a 60% occupancy and it still Works at a 55% well yeah it pretty much works at a 55% occupancy look would I like to get $106,000 per year and get a 68.9% return which is basically 69% yes of

course I would but when I'm teaching my students and you know everyone that watches the Channel I want you to Pat it a bit so that you can insulate yourself from like not making the return that you want to make just super happy if you can actually make it all the way up to a 70% cash on cash return I think it's pretty Unrealistic to expect that out of your deals I know people that want 50 60 70 80 90 100% cash on cash return let's not get greedy but really run the numbers run the

good better best scenario and decide what works for your investment strategy oh yeah and there's a couple other things here on airdna that you can even like really get into the nitty-gritty here you can actually even look at the occupancy rate here for the property I think that this is for the Last 30 days here the number of book days divided by the total number of days available for rent in the last month so 42% was the occupancy for basically all of January you've even got things like the booking lead time which is basically the

number of days in advance that the average reservation was made for stays occurring in the last month and then booked properties there were 529 booked properties in this entire area and then you can actually see how you stack up to The 25th percentile the 50th percentile the 75th percentile the 90th so you can say hey I think I'm going to be an average performer you can see where your occupancy rate would stand against the 50th per for every single month here so you can see here in February of 2021 it would have been 57% in

July 2021 81% but then like for me I'm more of a 90th percentile kind of guy so for me in my listings like that's where I usually Stand and I can see that these places are pretty much booked 87 97% of the time 96 96 96 93 94 97 100% so you probably don't want to do 90th percentile if you're kind of new to this I think 50 and 75th per is going to help you if you've lock down a really nice property and you watch all my YouTube videos and like them and hit the

Subscribe button let me a comment and enrolled in host Camp then I'll let you do 75th percentile so there are a lot of Really cool tools that you can use in air DNA now I do want to say that out of all of these tools the rentalizer is free so you can actually like put in the address I think you get like 50 to 100 free searches or something like that but if you want to unlock all of these different things like occupancy rates Revenue smart rates pacing all that kind of stuff there's a subscription

fee for the market that you're looking in now here's where I got a say like don't be Cheap it's like anywhere from like 30 to 40 bucks I think and I really don't want you to cheap out here because it's like if you're buying a $285,000 property you're going to spend 67,800 bucks I think correct me if I'm wrong I think you could probably afford 40 bucks to really solidify your analysis and really find out if this investment is going to work for you and that's it oh my gosh I'm so sorry Caleb you're going

to have so much fun editing This cute little 10-minute video there's so much more that I could say about this and want to I might make this a series on on the channel if if you want more more air DNA and more analytics goodness let me know in the comments down below if like there's a good response as you guys know when you all want something robuilt delivers but like I said yeah there's so much more that I could say that I want to say but I know that this is probably the longest video that

will Ever have made it onto the channel is my guess or you or YouTube If you have any questions let me know in the comments down below and I'll do my best to get them answered so yeah that's how you analyze a property and pick it a part and look at competition and see how you stack up against them and I know it wasn't super nitty-gritty on comping out three or four different properties but I actually think it's pretty useful for me to just walk you through my mindset my POV and like exactly how I

look at properties more than the actual like calculating I have a couple of other videos on the channel that talks about that but this is like my actual Philosophy for analyzing a short-term rental [Music] investment this is genuinely where I shop for for like most of my airbnbs whenever I'm setting up a unit so first of all I want to say that there will be A large temptation to buy most of your furniture at Ikea and Target I would really shy away from this when I was first getting started I was like oh my God

Ikea is amazing but then I really started to look around and examine other airbnbs and when I would I'd be like oh I've got that lamp oh I've got that giant poster of melon Monroe oh I've got that Swedish meatball holder now there are some key exceptions here of course when it comes to Target one thing that's Totally raw built to prove is effectively every single thing in the Hearth and hand section because our Gods chip and Joe and a gains would never let us down I really love their mirrors jars and containers and Rise

and Shine coffee mugs which I know are oddly specific but they're cute Sumi usually when I'm Furnishing an Airbnb I walk in with two carts and just buy out the section I tend to buy all my sheets from Ikea I also get my duvet covers from there and My duvet inserts and the reason I like getting my sheets from there is because they're 100% cotton and they're the only place where you can get 100% % cotton sheets super cheap otherwise good cotton sheets can cost you double triple or quadruple if you bougie AF which you're

not because we're trying to stick to a budget and you really don't want to splurge too much on sheets anyways cuz you're going to be replacing those things like every couple of months so It's best to keep that part of your budget tighter you know what that's from no you will in a second didn't say lose weight I might say tighten tight little tighter final little thing here I get a lot of my C from Ikea 2o now let's move on to what I consider adult Ikea and that's going to be World Market they are

a big box chain but they just have a way more premium product for the price I love getting couches dining room tables oddly enough my favorite place to get Plates all right we're on borrow time here because kids are going crazy and my wife is cooking in the kitchen but I just wanted to speak to Art real fast and say in general I try not to buy art from any big box chain but in a pinch if I absolutely have no option I get a lot of my art from World Market I think that they

tend have like the better more unique art your art was the prettiest art of all the art but for the most part I try to buy downloadable prints from Juniper print shop I'll then send it to a FedEx to get printed I'll frame it up and hang it in my house and I like doing this specifically because there are like thousands of options to choose from whereas places like Ikea Target Ross World Market have like 5 to 10 singular pieces that literally everyone uses for their Airbnb let's take a moment for a public service announcement

about plants and pillows in my mind two things really Make or break a space and that's usually going to be throw pillows in fake plants now you can do real plants that's obviously going to be a lot more ideal the problem is that plants are living things and if you don't have your cleaners your guests or Matt Damon helping you tend to your plants they're going to die it and we don't want plants to die so for me I'm always just leaning on fake plants and I will say that there is a Very big difference

between fake plants and nice fake plants so honestly as crazy as it sounds if you get a very good fake plant it's typically going to cost you a lot more than the actual plant itself this is a fake fig plant I think it cost me like $150 a real fig plant can cost you anywhere from $30 to $80 but the thing is like if you want it to look realistic if you don't want it to break whenever you move it you can really ruffle this around and you don't Have to worry about the leaves falling

off of the plant whereas if you get a very Cheapo plant man that stuff just breaks apart all the time the fake dirt crumbles and breaks and if you've got kids that are just messing with your plants which literally like our plants in this house always stay on our our media consoles and credenzas and everything like that from a child proofing standpoint it also behooves you to have like nice fake plants in my Opinion you really can't spend too much on fake plants and pillows I've been known to spend about $1,200 on a single trip

to World Market on throw pillows and fake plants as you can see here and this is literally all we could fit in this Frame but there are so many other plants and pillows in this house that's not even included here so trust me if you've purchased nice furniture and your place looks pretty good and you're like ah it's missing something usually the Addition of a couple plants here and there in the corners can really living up a space World Market in my opinion has the best selection on both of these items I think we should

talk about splurging because I think the hardest part for most people that are setting up a short-term rental or an Airbnb in general need to really understand that you need to choose your battles from a budget standpoint and what I mean by that is that if you're like most normal People you have a budget set and you you really don't want to go over that budget and so there are sacrifices that you have to make along the way so it's really about asking yourself do I want the living room to be the showpiece or do

I want the dining room to be the showpiece or the kitchen now whenever I'm breaking down my budget and having to make the heartbreaking decision on where to splurge I usually tend to spend a lot of my budget towards the cover Photo of your Airbnb listing because this is going to be the biggest photo on your listing that is really selling your house to anyone if you want to charge two 34 $500 a night you really got to sell them in a nice beautiful photo and so you really have to decide what room is going

to sell your place the most and it doesn't even necessarily have to be a room for example like here in my Cottage in Tennessee I've got a giant Deck with the view of the Smoky Mountains so maybe In this instance I would expl a little bit more on my patio furniture because that would be part of the Epic photo that showcases the mountains that surround my house but honestly pretty consistently I put most of my money into the living room that is where people are going to be hanging out they might have a beer they

might have some cocktails wine heroin whatever that is that's really going to be where people are gathering together sinking in vegging Out watching TV laughing catching up so for me I like to think of my airbnbs as what place brings the most Comfort to people that's usually the living room now usually whenever splurging the pieces that are going to take up the biggest part of your budget or what call statement pieces so these are going to be things like couches coffee tables credenzas buffets media consoles side tables and dining room tables and these are basically

the pieces that are going To be defining your space so I'm fine breaking my budget here as for where I'm usually getting my statement pieces these are usually the more big box retailers that are on the premium side so this is going to be like your West Elm Crate and Barrel Restoration Hardware CB2 Pottery Barn and of course Ross I honestly think that the worst part about setting up and buying furniture for your Airbnb is the the fact that we tend to buy things that are So much nicer than we'll ever own in our own

houses prime example is this couch which is the most beautiful thing that I've ever laid eyes on and we don't even get to take it with us when we move back to LA because it's staying behind with this Airbnb I'll miss you speaking of couches I'm usually snagging these from article when I can like I said earlier World Market's a great option too the West Elm outlet has Super affordable options as well people also Rave about the poly and bark Brand leather couches on Amazon and don't worry you don't have to scramble a lot of

this is going to be linked out in my shopping list in the description below now let's talk about the greatest place on Earth which is obviously Costco I get some pretty specific things from here like batteries pots and pans and hotel grade towels and they also have absurdly cheap pillows you can get like two Memory foam pillows for like I think $1.99 or something Costco also definitely comes in the clutch for things like cleaning supplies toilet paper paper towels like for real it's by far the cheapest and best place to get butt paper and obviously

I stock all my airbnbs with steaks from Costco because duh lastly I tend to fill in all the different gaps on Amazon and get you know final little touches and if I'm missing a fake plant and I need it super Fast or knickknacks or pieces of art whatever that may be I get that from Amazon I definitely get all of my mattresses and bed frames from Amazon too this mattress and bed frame is actually from zus or Zenus I've never actually said that out loud before this bed frame pretty much matches any style that I

go with on Airbnb now if I'm not mistaken the last I heard these have some kind of recall or something like that I've never had an issue with them But either way I also get sleep signature mattresses too off of Amazon and people Rave about these mattresses like they will contact me literally one year later and be like hey where'd you get your mattresses from they're so nice I've never slept so good in my life so you're welcome for the free advertising mattress companies and final point that I just realized I hadn't thought about until

this moment for the most part I get all of my rugs from ruggable.com all Right take a deep breath that was a lot let it sink in Digest test it process it go back watch the video again you're going to be fine I promise but hopefully now you have a pretty good idea on how to tackle Furnishing your Airbnb maybe if this is the biggest component that's been holding you back from starting an Airbnb business hopefully now you have a little bit more comfort knowing that it's it's really not too bad back when I had

a Consulting business the Furnishing Aspect of an Airbnb is what used to really hold back my clients because they really felt like they were biting off more than they could Che so yeah that's Furnishing an Airbnb [Music] look at this it's a high quality photographer right there you know you need someone that's willing to get on the roof and get done welcome back to today's episode of Raw built where we're going to be showing you how to Photograph your Airbnb so you can get thousands and thousands of dollars of bookings all right I don't know

it's not really the intro I had in mind but it probably works so let me paint a picture here for you imagine that you buy a $500,000 house and you have to pay $100,000 as a down payment 20% and then you find finally closed and you take off of work a whole entire one or two weeks and then you set up the Airbnb and you spend a Lot of money doing so and you go to World Market and you argue with your wife or your business partner about spending too much money on plants and then

finally you're done you crush it the place is absolutely amazing and then at the Finish Line you say hey I've spent a lot of money already I don't think I need to spend money on professional photos cuz I've got an iPhone 12 and so you decide to take photos that look like this when you Should be taking photos that look like this this happens thousands of times per day with all the listings that hit the short-term rental market and it's costing hosts thousands of dollars literally thousands of dollars in bookings So today we're going to

be talking about why your biggest Airbnb Splurge should be professional photography as well as a few tips for actually Photographing the magic of your Airbnb and making it shine in your listing but I didn't want to do that without actually bring my personal Airbnb photographer who is solely responsible for making me tens of thousands of dollars in bookings over the past 2 years I'm Eric barkur I have a studio in Southern California called barkers Studios and I shoot hundreds of airbnbs a [Music] Year oh my gosh we couldn't afford the wind machine so how often

would you say you take photos for a client Airbnb and it actually impacts bookings all the time I hear back from clients consistently saying that a lot of those photos are leading to higher booking rates which is pretty awesome yeah actually this reminds me of a Time an actual anecdotal experience actually working with Eric here where I was actually setting up my Airbnb in LA and I put cell phone photos up because I just didn't have time to schedule a photographer and I hadn't actually heard of Pete in like a month I was like oh

I wonder if my place is actually going to book Eric came in shot my Airbnb and literally within one or two days I got two or three different booking requests and the one that I actually accepted was a $3,000 booking that specific gu actually ended up extending their booking twice and it Turned into a $10,000 booking I don't know if I ever told you this but basically this $500 investment that I made turned into $10,000 booking for me so that's that's a that's pretty good that's good right thank you awesome I appreciate it thank you

love it so here's actually the crazy thing another story about Eric here is that he actually came in and reshot the home that I just told you about and I actually just locked in the biggest Booking of my Airbnb career for 6 months and it came in at a whopping $33,000 previous to that the biggest booking it ever gotten was 10,000 bucks so as you can see good photography pays for itself over and over and over again so now that we've established that professional photography works thank you I appreciate it you've made me a lot

of money we wanted to talk about a few tips that you should keep in mind as a host whenever you're briefing your photographer you Got a couple in mind here I've got a few one if you have an epic backyard epic view please think about doing Sunset photos Spring lights pool lights jacuzzi lights anything that really emphasizes the space where people can really hang out in is a huge huge benefit yeah so this is a really really significant one because a lot of the times photographers they're busy right they might have two or three shoots

during the day and so if they slot you in on a shoot like at noon The lighting is going to be completely different at noon than it might be at like 5:00 p.m. when the Sun is setting and the the sun might be a lot harsher at noon right correct yeah you get a lot of straight down Shadows so it's very contrasty doesn't look very good in the photos yeah and then a lot of stuff just looks blown out the colors aren't as rich and so if you come in at Twilight or Twilight's in the

morning Twilight's at night okay which one's in the morning Blue Hour Gold you have blue hour golden hour how many hours are there there's about four 24 there's 24 all to say if your photographer comes in in the morning at Blue hour or at 5:00 p.m. or 600 p.m. at Golden hour or right as the Sun is setting at Twilight right yep that that's correct correct good I'm out of my element you're doing good those photos are going to look drastically different and I just actually wanted to show you the difference that Twilight Photos can

make when you compare the photos that were're taking in the day so as you can see this is my Scott sale property and the photos are good but most of these photos were Tak in midafternoon when you compare them to the Twilight or the Sunset hours it's just 9-day difference these are the new photos that Eric actually took of this place and as you can see it's a pretty epic difference all right so we rookie mistake he had to actually go take Photos of the place at Sunset so we ran out of light so we're

in the house now we're going to get into tip number two here which is edit to amplify what does this mean when in the context of an Airbnb it means don't have too much stuff in one shot you want the frame to be full and you want it to look good and inviting but you don't want too much clutter or things all over the place Place yeah so for example you know you might stage a place and there's a lot Going on in your field of view so whenever you're taking photos you might have to

just move stuff around so that it looks better in the photo even though that's not actually where it's going to be in the in the house so for example like if your accent chairs are too close together it might look better in real life that way but in a photo it might look weird so you might pull them out 2 or 3 feet so that they feel a little bit more spacious in the area in the scene And on top of that I think editing to amplify also probably means like reusing the same fake plants

and throw pillows and everything shot like I'm so guilty of this yeah I I think a lot of furniture does really well with pillows so don't be afraid to move a pillow to another room maybe a small plant on a nightstand could work really well as well um yeah we use the same plant throughout the house it's the central thread in the house and people are Always like did you buy 10 of that plant now little suculent it's always the same succulent you just carry that in your pocket that's in like your tool bag same

with the nightstands as well so you can always kind of make a little you know put a little spot on the nightstand maybe it's a candle maybe it's a succulent maybe it's something but you want to fill the frame but not have too much stuff where it's overwhelming and last and probably the most important tip Out of this this is probably something you you feel quite a bit but it's actually make sure that you have a clean exterior clean exterior and clean windows are key if you have any kind of view to the exterior you

need to have your windows clean before the photographer gets there the second thing is with the cleanliness is that you know kind of everybody spends so much time inside the house making it look beautiful but make sure you look outside Make sure you pick up your trash make sure the gardener had come um just kind of do a a clean sweep of the outside yeah because if you think about it honestly a lot of people joke and they say oh they'll fix it in post or they'll Photoshop it but it's almost impossible to photoshop clean

windows like if there's you can't you can't Photoshop that if there's a bunch of leaves everywhere you could Photoshop that I guess you could Clone stamp it out but it's going to take you a long time and so a good photographer more than likely if they're like you know if they're good people they're going to go and they're going to clean and they're going to sweep for you but that's not what you hired them to do you didn't hire them to be your maintenance people you didn't hire them to clean up after you you want

it to be pristine outside for your photographer that way all they really have to do is Edit to amplify move stuff over frame the shot however they need to but they're not your cleaning people right that's a whole another team yeah and I will say I actually carry a blower in my car now really to get rid of leaves in backyard don't expect that from most people and I don't like to use it a lot but I do have one in my car like a leaf blower a leaf blower did you bring for this specific

here because we do we need it not here though talk a big game a big Game I thought Rob's house would be clean yeah you know there were there are thousands of bushes out here and literally we'll have the pool guy come out and then the next day the guest will check in and there's like thousands of leaves in the pools there's just a lot of Maintenance items on a really giant property like this there's 5 Acres of natural vegetation so it's like it's crazy all right so that's three tips for briefing your photographer as

you can See there is a bit of an art to photography right it's not just coming in and taking photos with a nice camera There's an actual skill that goes into wielding a camera and giving your place the Justice it deserves in its photos right so I wanted to quickly talk about the cell phone photo thing because I really do throw a lot of people under the bus here I get a lot of students or a lot of people that reach out with their listings I get people that will Submit their listings and they take

cell phone photos and I really get on to them and I say just spend the 2 to 700 bucks that it might cost to take professional photos it's really not that expensive I know that's a big range but there's so many photographers out there at different price points but there is one instance when it's okay to take self phone photos I'm going to give you permission to do it in this one specific time and that's whenever you just need To launch your property and you have a photographer scheduled and a lot of people say should

I just wait to get the pro photos so that I can launch my property and I always say no you should be trying to make money as fast as you can with your property so I think it's perfectly acceptable to take cell phone photos of your place launch for 1 to two weeks while you have your photographer come out and edit the photos and once you get them back from your photographer Upload them as fast as you can raise your rates and I promise you're going to make a lot more money and also this could

be a bonus for guests because they might have booked your place with cell phone photos and then they check back they see new photos and they're like wa they get super excited to come stay in your Airbnb so that is the only instance when you can take cell phone photos is if you're waiting for a photographer other than that don't cheap out I I know That a lot of you think cuz a lot of you have reached out and said well well my place is booked no problem and I've always had cell phone photos and

blah blah blah that could very much be true but the problem is you're booked 100% with bad photos what you're not realizing is that if you had good photos you could be booked 100% at 20 30 or 40% higher of an ADR your average daily rate so if you can just spare the 4 to 600 bucks I promise you you're going to make That so many times over over the course of your Airbnb career good evening and welcome to the Rob built hour I'm your host Rob I don't know why I'm talking like that so

I just closed on two properties that I'm going to be listing on Airbnb here very very shortly and I was about to start writing these listings and I thought well you know I don't really have any content on the channel that actually walks you step by step through like how to create your Airbnb listing and how to write sparkling clean copy for that listing so I thought today would be a really great opportunity to create like a step-by-step tutorial on how to craft the perfect Airbnb listing to you know increase bookings increase conversion rates get

traffic going to your um Airbnb listing and uh it's 11:32 p.m. so I know why I'm losing myself in the music the moment you want it's too late it's much too late for I know that this Isn't going to be the most exciting video for a lot of you but I will say that if you're looking to get into the short-term rental space or the Airbnb game then you're going to need to learn how to do this and it's really not too hard so I'm going to try to walk through this as intuitively as possible

and give you a few tips along the way to by the way be sure to use the link in my description down below when you're creating your listing because when you Do Airbnb will actually match us up they'll make me your Ambassador and I can answer basic listing questions for you so whenever your listing goes live I can give you feedback and insight as to how to make it better I won't be able to answer a ton of other questions this isn't a Consulting link or anything like that I really wish I could but there

are thousands of you out there but my promise to everyone that ever uses that link is I will do my best to make your Listing as great as possible when you use my link okay the other thing I'm going to say is that link will work if you've never hosted on Airbnb before if you've never created a listing before it will work if you have a travel account it will work but if you've ever created a listing or hosted before unfortunately it will not work I don't control the back end of this I just answer

questions on the little BNB website machine and all that kind of stuff all right so use That link down below and let me get you some feedback all right back to the video so I'm going to do my best to keep this as concise as possible but know that the Airbnb dashboard is pretty intricate and there are a lot of different options that you can check I'm not going to talk through all of that today I'm going to try to keep this a nice little 10-minute video for you okay so first thing you're going to

do here is click on create a new listing now you Could duplicate an existing listing if you've already created one before but you know if you're watching this video uh you probably haven't so click next and then you want to type in the physical address for where you're going to be creating your listing so we'll go to 555 like And subscribe Street I'm just kidding okay so let's go to 555 I'm just making up an address here frezy Lane okay 63874 frzy Lane MacArthur Ohio I love it okay so continue so here you're you're going

to choose what kind of place you're listing is so you'll have a few options here is it an apartment is it a house is this is is it a secondary unit is it a unique space is it a bed and breakfast is it a boutique hotel in my particular instance it's a house and then it'll say now let's narrow things down so here you can actually choose what it is is it a residential home a villa town home Cottage Bungalow cabin blah blah blah blah blah right mine in particular is actually a farmhouse but I

don't really see that as an option here so I'm just going to go with a cottage you could say it's a cottage why not and then confirm the type of place that guest will have so is it an entire space is it a private room meaning is it a room in your house or is it a shared room meaning is it like a a room where more than two Airbnb guests that are strangers like two Different parties are going to share so if you have a two-bedroom house and you live in one room and you

run out that other room to two separate people on Airbnb that would be a shared room so in my instance it's an entire place and then is this set up as a dedicated guest space it gives you the option to choose yes it's primarily set up for guests no I keep my personal belongings here so it's really just going to depend on if you live there and you're just you know Renting it out for part-time income or if it's set up as a full-on Airbnb um I like to say that it's primarily set up for

the guests my theory here is is that if Airbnb thinks you're serious about it and that it's 100% meant for Airbnb then they'll push it in the uh search algorithm I don't know if that's true but either way you can choose uh how you want to do it and then which best describes how you host I'm hosting as part of a business I'm hosting as a Private individual and it kind of breaks it down for you so in my particular instance I think I'm hosting as part of a business it's the first time I've ever

actually chosen that option but but I am a full-time real estate investor now so I'll do that proudly click on next and then from here you're going to choose how many guests that your place can actually sleep comfortably so ours is a three bed two bath so my general rule of thumb here is that you can have like two People per room so right there that's six people and then we typically put like a really nice sleeper sofa inside of the living room that's like a pull out sofa um okay so like I said it's

a 32 uh so that's right there is going to be six and then we can sleep two in the living room so that brings us up to eight so we can have eight guests and one thing that I also want to note you want to have the amount of guests that you can sleep comfortably so just Because you could cram 12 people in there does that mean that you would want to you only have two bathrooms so while my rule of thumb is that two people can be in a room I would say the max

amount of people sharing a bathroom should be five so this house should have a maximum of 10 if we had the space for it which we don't cuz it's only like a 13,400 ft house so for us we're going to be at eight it's going to be a little snug at around eight six is going to be that Optimal group size for us so how many bedrooms can a guest use so it's a three bedroom how many beds so we're going to have four beds total a couch counts as a bed then we actually break

it down in here so bedroom one is going to have a king bedroom two will have a full-size bed bedroom three a fullsize bed and then common space is the living room and we have a sofa bed and then the amount of bath BS two bathrooms or if you have like a half bathroom make sure to note That it's a valuable thing then where's your place located so we know it's on 63874 frzy lane frezy lane that's kind of like that's like the location of my mind my mind is on frezy lane at all times

it feels like so once you put in your address here it's going to give you a couple of options it's going to put a pin exactly where your house is I like to adjust it a little bit I don't think Airbnb loves that you change it too much but also like I don't really want people Like trying to find my house based off of the PIN on my map and that's actually more real as a YouTuber and as someone that discloses like airbnbs and stuff like you know I try to be a little bit more

private these days just cuz people do show up more often than you think I adjust this a little bit not too far off I just try to go like right here as you can see I'm like right at the edge of that Circle I guess that's like the buffer zone for Airbnb and the reason I Have it that way it's close enough to it's not really going to make a difference other than like one or two minutes but it's far enough away to where if someone's driving around they're going to really have to work for

finding your listing so once you found the perfect spot for whatever works for your comfort level you hit yes that's right and then you get into amenities here so you have the essentials which is towels bed soap toilet paper pillows Pillows uh cooking Basics a desk workspace this is a little bit loose I don't think you actually need a desk but I think if you have like a nice dining room table that counts an iron hair dryer shampoo hangers TV heating yeah so click everything that applies here Wi-Fi air conditioning fireplace do I have a

fireplace I don't think I do so I'm just going to click that okay and then safety amenities these are all gimmies you should have all of this so smoke Detector carbon monoxide detector first aid kit fire extinguisher lock on bedroom door eh I don't actually know I don't really think it I mean if someone chooses my place based on that they're weird okay so what spaces can guest use so we have a laundry dryer kitchen and then laundry wash and then that's it and then does your space have accessibility features not this one but my

other space that I'm going to list after this actually does have a wheelchair Accessible bathtub which is really cool and then from here you're going to list all of your photos so I'm going to say one of my listing tips here that I always give pretty much all the time is to just spend the money on a professional photographer and don't cheap out here I think it's perfectly acceptable to take cell phone photos if you need to just to get your listing published and ready to go but spend that $150 to $700 to get an

absolute Pro out There cuz it's going to be the number one driver of your Revenue so please please hire a professional photographer it breaks my heart to see all these cute houses that people spent $110,000 on nice furniture and like nice couches and rugs and everything then they take cell phone photos with their potato phones don't do it people I guess since that is one of my listing tips I actually have a PDF download of my top five listing tips for making your listing as solid as Possible so you can actually download that down in

the description below it's going to give you some of the insights that I've learned over the past four years so with that let's get into the photos so with your photos I would say the more the better I mean anywhere between 25 and 50 however make sure that they quality photos like I don't need to see a photo of your Li laugh love sign I don't need an up close photo of your like dinnertime place mats although the Occasional detail shot is fine just make sure that you choose the photos that really highlight your place

in the best possible light both literally and figuratively uh I guess another note while I'm waiting for these photos to upload um make sure to have your photographer come out and shoot during golden hour that's something that I did not clarify and while these photos look really really good golden hour is just your photos look so much much better for Example gasa Mariposa gasa kjo both of these were shot at Golden hour and they just they they just have like a certain Pizzazz to them and sometimes the photographer will charge you a little bit more

to come out cuz it is at the end of the work day but I will say that I do think it's worth it okay so photos are uploading don't get too caught up in setting what order they go in just yet just upload them and we'll work on that in a little bit so now we're going to Describe our place to our guests I'll show you how this shows up so we got casao here let me highlight this and it's going to be the very first thing that they see that you actually physically right except

for of course this headline up here hop into the Joshua Tree Hair BNB 300t tiny home and then you have all these little features entire home enhance clean Robert is a super host great location like that does show up first but that's all Autogenerated by Airbnb so here I like to start with something nice like a like a sentence that describes your place and then I like to get into the key features or benefits or you know those factors that people would book you for so for us this particular house is secluded because it's on

5 Acres but it's also in close proximity to a historic City and a few state parks as well so that's what we're going to be emphasizing here and if all else fails Airbnb actually gives You inspiration from the top rated listings in your area so they show you how your competition writes it up so you can always uh cop their style if you want to but people usually cop my style so I don't even need to look at that so we don't need to watch me Workshop this copy I'm just going to snap to it

and then it's going to be nice and pretty and there you go okay so I just wrote this up in 5 minutes I'm going to just quickly read it to you welcome to this Thoughtfully remodeled 100-year-old Farmhouse that lives on 5 Acres of total seclusion while this adorable home is the perfect private getaway for you and the family its location that's a typo all right I did say I wrote this in 5 minutes its location makes it easy for you to get around you are only 10 minutes to the pmac river 15 minutes to the

historic Berkeley Springs 20 minutes to Green Ridge State Forest 25 minutes to Capen State Park easy peasy now you Can choose to add more details here to really blow out your listing basically I do want you to treat your listing copy as a mini blog or a mini essay where you're really trying to convey as much as possible to me right so the next most important section here is going to be your space it does say optional but it's not it's not optional I'm going to make you do it this is the part where you

really expand on your listing and you really I want you to be able to close Your eyes and have someone read your listing to you and I want you to be able to picture what that house is like that's how you really need to be treating the description copy because this is what sells your place like you want people to have zero confusion on what they're getting okay what they read is what they get so make your words matter I'm going to write all this and then I'll read it at the end of the video

but basically fill it all in okay All right now we got to create create a title this is probably the most important piece of Copy in your entire listing okay Make It Count I often see people use two or three words and they don't even write a title and I'm just like how lazy are you okay so make it Sparkle make it pop don't be lazy on this and write Cabin in the Woods give me some kind of descriptor and what's the best thing about this place now with all that said you do only have

50 Characters so let's mess around here okay so the selling point here I think is that it's a 100-year-old Farmhouse I think that's pretty cool and it's on 5 acres and it's close to Berkeley spring but we only get 50 characters here so we're sort of limited on what we can choose so it takes a little bit of finessing here I'll use my copyrighting skills here to kind of bust something out so uh 100 year old farmhouse on 5 Acres of seclusion and That's pretty much it wow okay so no we'll go adorable 100e old

farmhouse on five acres easy okay so I've now said it's adorable great it's 100 years old great it's a farmhouse cool it's on 5 Acres I do see people that will go like private I don't know I don't think you need to like ever cap it I used to cap stuff but I don't really think you need to anymore so I don't know I could even say on a private 5 Acres NOP that won't even work okay so we'll just spell out Five all right adorable 100y old farmhouse on five acres on five private Acres

yeah let's do that on five private Acres so now feels a little secluded right okay great so next additional requirements so review Airbnb requests so this is basically asking you if you're allowing people to instant book or if you have to manually review every single request personally I like to set instant book but I feel like if you're getting started maybe you do want to Just consider manually reviewing your first couple of request just so you can kind of get the hang of things so if you are going the instant book route which I am

in this instance you can make them submit a government issued ID to Airbnb so that their identity is verified through the platform and you can also require that they are recommended by other hosts and have no negative reviews so that's really going to start weeding out some of those you know guests Couldn't think of a descriptor I've had a had a lot of guests oh god I've had a lot of guests they ask you how you are you just have to say that you're fine when you're not really fine and then we start sing the

house rules so is it suitable for G for kids yes suitable for infants yes suful suful suful no it's not suitable for pets uh that's going to be a personal preference on you smoking allow and no events not unless I'm invited additional Rules you're going to want to put all the house rules that apply to you um I usually have a pretty crazy set of rules but you know this is really going to be a personal preference I think and then details guests must know about your home must climb stairs no potential for noise no

pets live on property no so all of this for the most part I think um none of this really covers it I mean weapons on property I haven't been there so these guys haven't been on the property So we should be fine next so if you choose not to do inen book you can just click right here where it says I want to review every request that'll turn instant book off uh again that'll be up to you but I will say like a lot of people get so scared about oh what if people destroy my

house Airbnb does have this $1 million host guarantee hopefully you'll never have to use it I had to use it whenever someone almost burned down my a frame which I'll link to right here And I told that story on the channel a couple weeks ago but other than that I've actually had pretty good luck with Airbnb and then successful hosting starts with an accurate calendar this is basically them saying hey if you're making your dates available someone books it freaking commit to it bub cuz no one likes whenever you cancel on a guest cuz yeah

that's not fun for anybody have you rented out your place before I have and then how often do you Want to have guests I always like to say as often as possible I think that triggers something in the algorithm that says like oh okay they want to be promoted so let's promote them a little bit more if you say not sure yet or part-time I don't know I've never done it but I don't really feel like Airbnb really favors that those options so now moving on to here how much notice do you need before a

guest arrives same day I mean it really comes down to your Cleaners if your cleaners are cool with the same day turn awesome if not you can Pat it out a bit and then my general rule here for when guests can book they can book anytime before midnight in theory the house should be ready guests can check in from 400 p.m. all the way through midnight and then how far in advance can guest book well I plan on owning this thing forever so 6 months uh you can do a year you can do as much

as you want but for me 6 months is what I'm Comfortable with and then I do like having a minimum of two nights I think that kind of weeds out a lot of the party people and I don't know I I like two night stays no max if someone wants to stay there for 15 years come on pal I'll take your money uh and then do you want to connect another calendar to your Airbnb calendar so this would really matter more if you have like a vbo listing that you're also creating you can Import and

Export each calendar to Each platform so that you never have a double booking and then set your availability so I'm going to block the next couple of days just a little bit of buffer to give me some time to find out a few more facts about this house because my partner was the one that was there setting it up so I need tomorrow to do that so I would say in this instance block off as much time as you need to get it ready but I will say that giving yourself you know having someone Actually

book their first day like for me if someone books on the 29th we're hitting the ground running and that means that we're going to be ready on the 29th Rainer shine and then base price this is where Airbnb tries to sell you on Smart Pricing don't do it no one likes it just go with one of the third party Services out there I go with price Labs it's my favorite Dynamic pricing tool and I think it's just the easiest but for now I'm going to scroll down Here and say use base price only and they're

recommending $171 a night that seems a little bit lower than what I had anticipated so let me see what airdna puts us at so Airbnb was actually kind of close at 171 air DNA has me at 176 so I'm going to go with that next offer 20% off to your first guests don't add a special offer this just depends on how fast you want to get your first guests I don't typically do it cuz I don't like giving discounts out cuz it's the worst Crowds but yeah let's do it why not why not there's a

first everything maybe they won't burn me and destroy me and leave me the worst freaking reviews like every other discounted guest always does probably will though uh weekly discount I mean this is kind of up to you I typically do like a 5% weekly discount and like a 10% monthlong if someone wants to stay there but honestly I would rather not have a month-long discount because I I make more money that way and So from here it just kind of spits out like an algorithm based on what you chose it tells you everything it kind

of sums it up nicely you can hit next and then it'll kind of take you into your local laws and taxes and say make sure to get your permit make sure that it's legal blah blah blah blah blah it's legal for us so we're good to go and then uh yeah I mean that that's sort of like the the basics of actually like creating your listing I can go ahead and Publish that right now I guess I will I'm not actually done making it yet but you know why not my listing is live wow what

an exciting thing at 1:21 a.m. so now that it's listed here's where we're going to go in and start optimizing things so first things first under pricing and availability I want to go ahead and add the cleaning fee in here so cleaning fee on something like this I imagine is going to be about $175 $ people who clean my listing are paid a Living wage yes they are pay your people a living wage man just do it you're going to be much better off if you do uh extra guest fee so typically I charge $15

for extra guests this is Case by case so in this instance I can have up to eight people um so I'm going to let the first six people stay for free but guest seven and eight will have to pay that $15 uh per night fee so luckily for taxes Airbnb actually collects and remits those taxes on our behalf to the County to the state or to some to Biden I I don't know I don't know who they send it to they send it to somebody I always like to do cleaning fee first when I'm doing

all of this because if you don't you might forget and then someone might book and if someone books before you set the cleaning fee then guess what you're paying for that cleaning fee and it always sucks it's rookie mistake it's happened to the best of us but just do this first yeah so That'll be pretty good from here uh so policies and rules let's see if there's anything here okay so policies you want to set your cancellation policy for me I like to go strict uh or non-refundable I don't like people cancelling on me last

minute and you know if I have a strict cancellation policy then no matter what I'm not refunding you so book at your own risk however you have so many I mean there are literally 1 2 3 4 5 6 seven eight options that weren't here like the Last time I did this so give me a second I'm going to read all of this all right I just read through all of this honestly this is going to be your personal preference I'm still going to roll with strict firm seems promising but eh so very important in

your policies too is to set your checkout time so my check at time is always 10: a.m. um that's pretty standard in the hotel industry and that's standard for a lot of airbnbs too and then security deposit I prefer to Have a deposit of $300 to $500 I might go 500 on on this property cuz it is nice and there's a lot of nice furniture in here and uh you know if people don't plan on breaking anything then they shouldn't have an issue paying $500 for a security deposit people who are scared by that $500

number I don't want them I don't want them to stay sorry if you're scared at paying a $500 deposit not going to happen pal CAD okay anything else additional rules okay great so Here's where I'm going to add all of my different rules so in additional rules this is where you can have all of your house rules so I'm going to do that I'm just using rules from a different listing I really go overboard on some of these rules great we'll save that under guest requirement since I am doing instant book so for me I

like a profile photo to be required cuz I just I don't know I want to know that they're a human and not a robot so you'll be able to see That after they actually book and then I think that's going to be it all right so info for guests okay so then we go to info for guests um pretty pretty simple here interaction with guests I won't be available in person and then I always write something like while I won't be available in person I am just a short phone call away some people really do

choose to exercise that route the remote's not working uh have you pushed the power button on it Oh it happened like a week ago checking instructions you can add that um this is where you're going to pretty much add like okay do you have a Smart Lock a keypad we do have a keypad um let's just say that's the let's just say that's the code to it keep on rocking here okay Wi-Fi details you can set your Wi-Fi um so Wi-Fi network like And subscribe smash that Buton there you go say that those are Your

Wi-Fi passwords okay great and then last thing here pretty simple your co-hosts so this is where you're going to add a co-host or you can add your cleaner too pretty easy to do you can just enter their email here and then they'll have to accept it on their side at gmail.com invite Perfection great so that is pretty much all the basics here the last thing you're going to want to do is actually set the order for your Photos so I like to set the best photo first so we'll find the best photo of my house

here um I'm going to go it's probably it's probably this one there we go cover photo and so from here on your listing you have like five different cover photos so again you just want to thoughtfully choose like the best photos in your place so our living room is really really cute so we're going to go ahead and move that then our dining room table is cute and then we have some Great amenities here with hammocks and fire pits so let's go ahead and throw that in there so basically my rule of thumb here so

I'm not going to really Hammer photos too much here but my rule of thumb here is to really take them on a journey through your house so really Le them through the house as much as you can so if you start in the living room and we have every different angle that kind of shows them what that next room looks like then the bathro B then the Next room and what the bathroom looks like for that room and then the master and back out to the living room into the kitchen so really kind of give

them a little mini tour if you will okay so everything squared away with the listing here we're now in preview mode and I wanted to just take you through it I didn't completely finish writing it out just because it's YouTube and I needed to get to the point here as you can see here at the very top adorable 100y old Farmhouse on five private Acres awesome then we get into the actual listing description again typically I would really blow this out and make this a lot more thorough a lot more informative and descriptive and add

a little bit of humor here and there but I wrote this in like 10 minutes so I've already read you through that first section then we get into the second section here called the space which reads every aspect of this home has been remodeled to Breathe new Life into the stored Farmhouse while the home is equipped to host eight people we think the perfect group size is 5 to six we're happy to host all eight but keep in mind it'll be a little bit Cozier is that a cloud you're sleeping on nope that's just the

memory foam mattresses we stock in every bedroom even the living room article pullout couch comes equipped with the memory foam mattress so no need to draw straws on who sleeps where because every single room in the House is its own little Sanctuary sure eating at the finest restaurants can be fun but sometimes we all need a nice home-cooked meal right that's why our kitchen is fully stocked with all the essentials you'll need to cook you and your family a nice dinner guest access the home is on 5 Acres you are free to roam and explore

the land other things to knowe there's a covered pool on the property it's out of commission we ask that you do not go near it please keep In mind that we run on septic so please do not flush anything that's not toilet paper and scene um so yeah that is this listing I'm going to still be working and tweaking and really working on this probably for the next day or two but it's not really going to be complete for at least a month cuz I'm always messing around and optimizing my listing as much as I

can so with that hopefully you found this helpful uh I don't know how Long this video is I'm sorry if it's long but but yeah if it's long then I'm sorry for providing you insane value for free uh don't forget that you can download my top five listing tips in the description down below as I said it's like the top tip that I've learned along the way as an Airbnb host over the past 4 years so I wanted to talk about my experience with managing properties how I used to self-manage it how I Transitioned into

a property management software some of the pros and cons and then if you stick around until the very end of the video life Pro tip I'll actually give you a walkthr of the property management system that I use so let's get into the nitty-gritty after many years of fine-tuning my processes and systems building my team I feel like I finally have a solution to managing my property right like you know I talk a lot about building your Airbnb Avengers Caleb spent a long time on this specific graphic so we're going to go ahead and play

it here that's really just half of it the other half of it is going to be the property management tools systems softwares platforms that you use okay so let's backtrack a little bit and let's just Define what a property management system or platform is so a PMS for short is basically a platform system or service that provides solutions to the day-to-day tasks that hosts are carrying Out in the short tental business that sounds a little corporate doesn't it basically a PMS is this tool that has a bunch of cool little functions that don't make you

pull your hair out every single day as a host so a very quick example of a tool that would be part of a PMS that makes your life as a host easier would be something like automated messaging so imagine that you have a very popular Airbnb and you are booking between 10 and 20 stays every single Month that's 10 to 20 people that you have to message several times throughout the course of their stay so whenever someone sends you an inquiry whenever someone checks in the day after they check in and you want to follow

up and make sure everything's going out we're laying checkout instructions like all of those different scenarios are times at which you'll be sending messages to your guests right so that's just like four off the top of my head if you have 20 Reservations in a month that right there is 80 messages that you would have to send out to different guests throughout any given month those are a lot of messages that you're probably going to forget to send out because you're human and there's just no way that you can do all of that by yourself

I used to do this myself I used to self-manage myself and I used to miss messages all of the time well with the proper PMS you can actually Auto all of your messaging so That you don't have to like be in the weeds of messaging every single one of your guests it's a beautiful thing it's something that I talk about quite often on the channel because I'm just such a big believer in automating so much of your business as you can another very little Nifty tool would be like Auto inquiry messaging whenever someone does an

instant book and they send in inquiry asking you some kind of clarification around your listing typically you want To respond to those people as fast as possible because it's very possible that they also messaged four other hosts and if you're not one of the first people to respond to them one of those other four hosts that they message might give them their ention much quicker and actually snag that reservation out from under you because you didn't respond fast enough that could cost you hundreds if not thousands of dollars I have probably lost out on tens

of thousands of dollars Over the course of my hosting because I just wasn't fast enough at responding to people because I had a 9 to-5 Job wife dog normal life you know I'm human I can't be glued to my phone every single day and in this business time is money so if you have the right Property Management tool what it can do is instead of you having to respond lightning fast it can send out a message to that guest and say hey Caleb I see that you've uh sent me a message here Give me a

couple moments to answer your question and I'll get back to you as soon as possible that right there already makes that potential guest feel a little better because they're like oh okay I've been heard they hear me and I'll just kind of sit tight until that host gets back to me that little function right there can set you apart from all your competition in the area another really common question that I get is what about cleaning how can I Manage cleaners for 14 different properties you know how do you do it Rob and here's the

short answer I don't the right Property Management tool can help you do that by actually sending out automated text messages and email alerts to your cleaning crew it can send them the schedule it can let them know when people are checking in checking out even whenever people book your place so that cleaner has a heads up that they have to schedule you that they have to schedule You in to their schedule pretty pretty standard there are some Property Management tools that will even get super I mean there's like hundreds of features within all the platforms

that exist out there but the right PMs can even have financial reporting data that basically tracks how much money you're making you can track expenses and all that kind of stuff if you really want to be in the weeds of your financials for your short-term rental business so there Are so many aspects of your business that you can automate through the right property management system these are just a few of the ones that I use I don't necessarily use the financial reporting as much because I actually have a bookkeeper that helps me track the expenses

but just goes to show you that really the possibilities are endless and it just is going to come down to your personal style on how much you want to micromanage or how much you Want to give away for me it was very tough for me to give away so many aspects of my control to robots if you will robots huh huh robots a lot of hosts including myself are are very stubborn about relinquishing control because in some regards it really feels like ultimately you're giving up a little bit of the quality of your listing but

I think that when you really spend a lot of time fine-tuning and optimizing your Automations and all the different functions and triggers inside of your property management system it can actually improve the quality of your listing man you are you're stunt man you're stunt man 101 over here guys give it up for Caleb in the comments I have no idea what I'm doing but I know I'm doing it really really well if you really think about it honestly the quality of your commity Communication in hosting go up pretty significantly Whenever you use a property management

system because there's not as many things falling through the crap for me I don't want to give up so many aspects of hosting and so I didn't really enable the use of a property management tool at the beginning of Hosting because I was like oh I can do it I can do it all and I could honestly for the first one two three 4ish listings I was really doing a good job managing everything just manually if you will but then once we Added listing 5 6 7 8 9 10 then you can start to see

how things fall through the cracks guest start sending you messages and you don't respond and then they'll leave you a three or four star for bad communication then you get hurt and you're just like well what the heck well how can I be a better host and a lot of the times it just comes down to recognizing that we can't do it all and that's fine that's totally fine I think the faster you recognize that the faster You'll start making a little bit more money on Airbnb so with all of this said obviously I'm a

big fan of just using tools to make your business as efficient as possible I guess the other question that needs to be answered is can you automate everything can you automate your entire airb andb business and as much as I'd love to say you can the harsh truth is that you can't but I do think that you can come pretty close and I'll give you a couple of examples with This so let's say that you wanted to automate your messaging right so let's say that Caleb books your place you can schedule a message to go

out and say hey Caleb thanks for booking a stay at Casita kjo I've got you down for two guests on January 20th we'll see you soon the day that Caleb is going to check in I can also send a message that says hey hope you're looking forward to your stay down below is a house manual in there you'll find all the info that You need to check in it's a super easy self checkin process now what you can't automate against is whenever Caleb responds to those messages so we can use automations to make our hosting

lives easier but we can't necessarily use them as a crutch because if Caleb then responds and says hey man I'm really excited about my stay today by the way do you have a can opener well there is no tool that you can put in place to answer that highly specific question Right and so that's where you still have to have what I call a bird's ey view I mean I I didn't coin the term bird's eye view but like in in respect to hosting you want to have a bird's eye view of your business where

you can swoop in and help anytime that you need to but you don't necessarily want to be on the ground level putting out fires that's why we build teams and automations so you still have to respond to people whenever they ask kyly specific Questions because if you don't then yeah look will Caleb survive if he doesn't find out about the can opener Caleb are you going to survive yes no you're not going to well in most cases Caleb is going to survive if he doesn't find out about the freaking can opener right but that doesn't

necessarily mean he's going to be happy about it and he might ding you he might give you a fourstar review because you didn't get back to him so he went out and bought a can opener and When he got to the Airbnb he found out that there was a can opener so now I spent $5 for no freaking reason right and so now you've just possibly tainted his experience in some capacity messaging is a really great example of something that you can automate but only about 90% of it you still need to all lot time

to the other 10% where you are answering some of these more nitty-gritty questions so with that said no you can't automate everything sorry I Know that there are a lot of Airbnb influencers out there that are like hey automate your business you can do it and make millions too I'm going to keep it a little bit more real with you now with that said a good PMS should help you chop out about 50% of the time that you're allotting towards hosting so for me I try to obviously spend as little time as possible you know

in the weeds of my business because I've got so many other businesses out there so I'm trying To spend about 1 to two hours of my week on my Airbnb business and I've got different people that are helping me manage it and everything because I've got a channel and businesses and all that kind of stuff but what I really want aspiring host to aim for is maybe 3 to 5 hours per week per property when you're starting out and then I want you to optimize your business to the point where hopefully you're spending 1 to

two hours per week per property and then you Get to the point where you Mega automate everything and you spend one to two hours a week posting on Airbnb in general so I'm kind of curious I know that there are a lot of hosts that watch my channel how much time do you spend managing your business leave me a comment down below because some people are like I spend 30 hours a week and some people are like me they spend 1 to 5 hours a week depending on how crazy that week is because you know

as much as I like to say I have everything like down pat ready to rock and like very automated whenever it rains it pours and then the opposite is true whenever it's calm it's just like you don't hear a peep from certain listings so you just never know what you're going to get with Airbnb which honestly I think is my favorite part about hosting because there's always a new situation to learn from there are always people that you have to learn how to maneuver when They're unreasonable or they're super angry or they're very Petty or

whatever right so for me I often feel like I've seen it all but honestly I feel like we're just scratching the surface here we're at the tip of the iceberg but I'm really excited because the more crazy situations I Endure the more crazy situations I can teach you guys about so that's my Spiel on property management tools automating like why they're important the pros there really aren't a Lot of cons I don't think there are any cons but that's my general POV on a proper management system I still know a lot of hosts that have

like 10 15 listings that are doing everything manually that kind of stuff always melts my mind to hear because I just I know a lot of them and they're all very smart and I'm just like dude don't you want your time back if you could have your time back and it would cost you7 to $50 a month to do that why wouldn't you it's A very obvious trade-off for me so now that the beautiful golden hour has ended why don't we head inside so that Caleb can rest his weak little arms Mr violently shaking over

here and do a quick walk through of my favorite PMS guesty for hosts all right we're back in the office office here and typically this is like the part of the video where I'd be like this video is brought to you now would do a 60-second ad integration but I figured why not change it up and Actually show you how the platform works again I do want to say that this is the platform that I actually use I think that's really important to notate so I do want to say a couple of things here if

you've ever heard me talk about your Porter that is now the guesty brand and there are two guesty products there are guesty for hosts and that's what we're going to be talking about today that is for hosts that have between one to three listings and then there's another Product called guesty for pros and that's for people that have four plus listings people that working Professionals in property management or just overall short-term rentals now let's go through guesty for host so whenever you log in this is going to be your main portal here you're going to

see here that this is your daily activity so this just gives you an overview of what's happening at your property so we have someone expected to Check out today Monday January 17th out of Casita cono and then someone is expected to check in today at Casita cono so I now know that I have a same day turn so I need my cleaners to show up get it ready for the guests here they have no wiggle room they can't come clean tomorrow or anything like that right so it doesn't really affect my day-to-day necessarily but it

is nice to know when I am back to back because that gives me time to have maintenance done On the property or Pest Control can come into the property or anything like that now let's jump into our calendar tab here and you can see Cita kjo I have bookings here for the next couple of days kind of wide open here for the next month and then I have some bookings here in February as well I'm not super worried about that historically during this season in Joshua Tree for me I get a lot of last minute

bookings like I would say 60 to 80% of my bookings Happen the day of or 1 to 3 days before so this will pretty much give you an overview of all of your property so let's say you have three different properties here and it just gives you a top down view of your property and how busy they are during the different seasonalities if you will then you've got your cleaning tab here and again this is probably going to be one of the more clutch features that you use with the guesty platform I like a lot

of the Different functionalities here so you can run cleaning reports you can do checklists so if you want to create a new checklist for your cleaner let's say you want to do Bono deep clean because you want to do a deep clean every so often and then you can just add different things here right so you can just make sure that your cleaner is showing a little bit of love to certain items so we can say say things like clean fridge clean microwave dust Baseboards remove bodies from closets and clean behind toilets you can create

this checklist and actually send that to your cleaner so for kjo deep let me let me rename that fast kjo deep clean all right there we go I forget I said anything so save so there we go so I can then copy this list so that could be a cleaning list that you then send to your cleaning crew now I think that perhaps the most interesting feature here are your cleaning reminders you can actually Send reminders to your team just like it says right there and basically where this really saves you a lot of time

is that you're not having to text your cleaners when people are checking in and checking out you can have guesty for host do this for you so you can see here every time I get a new reservation it sends a daily task list to my cleaner and then whenever I have a checkout it also sends that daily task list to that cleaner so I just want to kind of show You how this works logistically you can create or select different task types that you'll then assign to your cleaners so for example I have here cleaning

so you'll have three different triggers here for your autom so you can choose between your new reservation check in and checkout so let's select checkout here and you can even get more specific you can say after a guest checks out so the moment a guest checks out you can send a reminder and even choose the time So I've got here 12:00 p.m. so at noon on noon the day that a guest checks out which is about 2 hours after they check out you can send a reminder so I'm going to select on the day that

the guest checks out and then go continue here so then I can actually choose the listing here so let's say and then I can continue with that listing so then you can choose a teammate here which in theory are your cleaners you can add a teammate if you don't have them in the System already so let's say it's Ron Frugal man Ron Frugal man 223 hotmail.com phone number 713 4441 okay whatever that's I'm sure that's a real number so then you can see that I can actually send it to him here via text message or

email so I'll hit okay and then I can actually choose what information to send him so the base messaging that you can send here is that they have a cleaning on this checkout date for listing name and those are tags So it's going to go ahead and change that checkout date depending on when it is then for this it would say cono in that text message I can also add things like checkout date number of guests confirmation date all that kind of stuff if I want to my cleaners just prefer those first two then you

can continue and if I have a checklist here that I created remember like the guo deep clean I can add that here if I really want to micromanage it but typically my cleaners Have their own lists and I'll just say here continue without checklist and then here's an overview of all the things that I'm sending them so check in check out date of next check-in next reservation number of guests that's an important one so that they know how many towels to put out extra pillows sheets all that kind of stuff continue and since I'm making

this rule today I can actually send them a text and email with all of the future cleans that are Currently scheduled in my calendar so confirm your teammate will receive daily messages about scheduled tasks great boom easy peasy then Ron fugan will get that text message and then he'll add it to his calendar or his uh diary or whatever he wants to use to track his cleaning and then one of the final tabs here that I wanted to show you is messaging and what I really like about this is that they have a Unified Inbox

so not only is it my personal listings Also shows all the messages from all of the different listings that I'm a co-host on so I don't even necessarily have to use the Airbnb or VRBO app if I don't want to I can keep it all within guesty now a few more things to talk through here we've got our automated messaging so I can actually schedule messages to people and I'll show you what that looks like so I've got a welcome message here so basically what that means is whenever someone books my Place I say hey

thanks for booking kind of like I was talking about earlier so I'll actually show you what this looks like I'll go here I'll go to template and let me edit here so whenever someone books a stay at Casita cono they will get this message right here thanks for booking a say c k first name going to be replaced with their first name your reservation starts on this day friendly reminder that this house runs on septic do not flush anything other than toilet Paper thank you so there are any important things that I need them to

know I will send it to them in that initial message and you got all your different tags here that you can include and obviously this is all very adjustable based on your specific listing you can choose to send more messages or less messages but as you can see here I pretty much just do three I have a welcome message whenever they book a check-in message the day of a Checkout message the day before that gives them any perent information that they need to know like taking out trash washing dishes and then I also have a

review so I just want to show you how easy it is to create an automated message so we're going to go to scheduled messaging here start automating your repeating messages so I'm going to schedule my review prompt and what this basically means is couple of days after a guest checks out I want To send them a message that says hey Caleb I hope you enjoyed your stay I really my my business depends on five star reviews i' really appreciate it if you took a moment to review your stay at Casita kle and I found that

by doing this my five star reviews went up significantly because I was reminding people that I'm just a person and I I need their help in reviewing my place and I also realized that by asking a five star review people felt bad about Leaving me anything less than a five-star review so it's kind of a win-win and one of the other things is if you don't ask for a five-star review and someone just reviews you off the top of their head without hearing from you how much you need it for the survival of your business

people are less likely to leave you a three or four star review so I'll show you how to do that really fast so we're going to hit schedule new message this is going to be a platform Message so this would be going out on Airbnb cuz Casita G Hill is exclusively on Airbnb and then we'll do checkout and I'll show you why so I can do after a guest checks out I can select how many days after they check out I want to send this so I want it to be like fresh on their mind

but not necessarily like so far after that they can't remember their stay so I'll say 2 days after someone stays I'll send them a message we'll go to Gita kjo then we're going to do cono Review because I already have that template in my system and so basically 2 days after a guest checks out at noon they will get this message from me that says hey I hope you enjoyed your stay at my house I'm trying really hard to maintain superhost status and rely 100% on the five star reviews of my amazing guest blah blah

blah blah blah right so then confirm it and then it gives me the schedule here of when it's going to send out all these different things so then I Hit confirm automation rule created boom good to go and then we'll see it pop up here in my scheduled messages so we got welcome checkin cono checkout and then goo review and then boom easy peasy and then yeah I'll just show you a few of the other things they have a website builder here so if you ever want to go off platform and have www.o.com you can

actually build that website within guesty for hosts you can do your income reports this is where you Can actually see how much your different properties made so we can see view income reports here you don't have any income reports yet please click here to create your first report we'll go Casita kjo continue and it will actually pull that information from Airbnb and vbo and put it all together for you I'm a self operator model continue type in report name kjo report and then boom it'll show me how much I made in my last complete month

so the date range we have here is December 1st through December 31st that month my net payout was $99,100 and $284 $4 in platform fees and then that month I paid $1,440 in cleaning fees and it'll even show you things like your occupancy rate and as you can see here in December I had 93.6% occupancy and then my average daily rate was $275 48 so yeah like I said you can get pretty technical with the financial data here obviously a lot of this data is in Airbnb but if I'm being honest this is laid out

way nicer than Airbnb Airbnb is a little it's a little finicky sometimes so like I said website builder income reports you can even track your expenses other key statistics you want to do Smart Pricing like if you don't like the Airbnb pricing tool which no host on planet Earth does you can even use their Dynamic pricing feature if you want and smart locks is one of my favorite ones and that's where you can actually Integrate with locks like the slage oncode so that every single time there's a new reservation it autog generates a new code

for every single new guest and that new code can be set to be the last four digits of that guest's phone number so that they can easily remember it so that's it that that's the walkthrough I mean obviously there's so much more I can dive into but this is YouTube and I do try to keep my videos to be a short Snappy 10 minutes or so this one's Probably like what do you think Halo like 12 minutes or so some somewhere in there we're not going to talk about automations today we're going to actually talk

about the team that you need to build to successfully run your Airbnb and who the key players are there are six key players the first one we're going to talk about is definitely the most important but there are definitely a few of these that I know you're going to be like what I didn't even think About that role so you're going to want to make sure to stick around to the very end because I promise you if you do you'll be able to crush your short-term rental from anywhere in the universe so long as you

can get Wi-Fi let's go you can name your team anything you want David Green when he talks about long-distance investing he calls it his core four but for me I call my Airbnb team the Airbnb Avengers because every single one of them are so crucial for My Success all right and my number one Avenger for any property are my cleaners the cleaners are what I consider the eyes and ears of my operation a lot of people tend to skimp out on their cleaners and I think that is actually a really bad idea if you skimp

out on your cleaners I promise you it will cost you thousands of dollars in the long run but the reason that hiring a cleaner is so important is a you can't do all the cleaning yourself you might be able to Do the cleanings if you own one property and you live nearby once you scale to 2 3 4 5 it becomes increasingly difficult to do that and certainly not recommended but to truly run as an Airbnb operator at scale you have to quickly replace yourself in every component of the business as fast as possible the

cleaner is going to be the best way to do that the reason your cleaner is so important is because the cleaner is the person that's going to be at the proper Property the most out of anyone in the team including yourself if you think about your availability calendar and how often you're going to be booked you're going to be seeing anywhere from 5 to let's say 10 sets of reservations every single month at any given Airbnb and so naturally that means that your unit needs to be cleaned 5 to 10 times per month and so

your cleaner is going to be doing that now ideally when you're hiring your cleaner not actually hiring Someone to just come in and clean you're also hiring someone to come back and report to you anything that might be wrong with the property it could be a loose chair could be a broken fridge handle could also be just damages from the guest if a guest damages an aspect of your home how are you going to find out cuz most guests aren't going to fess up to it and so you need your cleaner to report that back

to you and so this is why I say they are the eyes and ears of Your operation they're truly keeping track of every single thing of your Airbnb and so you really need them to report back to you with every little thing that could be wrong most of the times and most of the failures that I've had in my Airbnb cuz I've had many I've hosted tens of thousands of people at this point people know me is lack of accountability and lack of report metrics with my cleaning team and what this specifically means is often

times I've told my cleaners hey I want you to clean and report back if anything is broken but early on when I was having failures I wasn't properly briefing them on the scope of their job making sure that they were cleaning not just the inside but the outside of the property I wasn't providing them checklist I wasn't doing anything like that so when you have this Loosey Goosey relationship where you're like hey clean my house something broken let me know then a lot Of stuff tends to fall through the cracks there have been many times

where I've checked into my Airbnb and pretty much shrieked in horror at the disrepair of So Many Items of that and I'm sure a lot of you can probably relate to that why on Earth would my cleaner not tell me this and most of the time it's because you didn't tell them to tell you that specific thing so if you really start thinking about the cleaner of your business it really does go Beyond Cleaning it's almost like they're a cleaner and a reporter of everything with your property and this is why you don't want to

skimp because a cleaner comes into an Airbnb and they say my job is to clean first and foremost they don't pay me for the other stuff so if you go to your cleaner you say hey well I need you to clean the windows I need you to sweep outside I need you to run through this checklist I need you to tighten any loose chairs and I need you To clean but instead of paying you the $200 you asked for I want to pay you $150 guess what you're going to have a failing Airbnb with three

and four star reviews across the board so this is why I really stress the importance of paying your cleaners what they're worth and not nickel and diming them on every single thing it's really no surprise that my most expensive cleaners are by far my best cleaners in Joshua Tree California I have a 300t tiny home charge me $85 to Clean that house really expensive for a house that small but I have never once in the 300 reviews gotten to complain about cleaning I've gotten the exact opposite and that is an expense that has been worth

it for me because they crush it for me time and time again so that's going to be the first key player on your team spend a little bit more time on this and I probably will for the rest of the team but I wanted to because they are the most important person on your Team okay the second person on your team also very important is your handyman H maybe I need to recheck my biases or your handy woman listen your handy person whoever it is the reason they're important is because they're going to fix stuff

now let's just go back to your cleaners right I said they're the eyes and the ears of of your operation they're going to say hey Rob hey Timothy hey Carol hey Karen one eternity later hey Rob this thing is broken it needs to Be fixed now if it's super simple your cleaner might be willing to fix it for you a light bulb needs to be changed or battery needs to be swapped up most cleaners are going to be okay with doing that but once you need an actual tool to do something this is typically my

rule of thumb like a screwdriver they're most of the time not going to mess with it they'll say hey Rob this needs to be repaired they'll communicate that to you and then guess what call your handyman To come in and fix things now you got be pretty particular with your handyman or handy woman or handy person because at the end of the day handy people in general generalization here they are not the most business-oriented organized or punctual people and so you want to find someone that you can really depend on but at the same time

they might actually be very dependable they just may be very busy and here's what I've always found if they're amazing and super Dependable Then they are always busy and so when you need that handy person they're so busy that they can't actually get to your work and so this is actually where I get into this groove specifically for this role where I tend to try to find one two or three handyman that can help me out on a rotating basis when I can find one that's just always solid and dependable awesome but I like to

have a bit of a roster with handy people because they're just always out in the Field fixing stuff and I think there's so many variables within their job that keep them delayed at their job site thus making it hard for them to be punctual for the jobs that you need and this is really the hard part about airbnbs that people tend to pay premium rates and so when something is broken you need it fixed super fast or else that person is going to be demanding a refund now a lot of you might be asking well

Rob why do you have two or three handymen but not Two or three cleaners and the reason being is when I find a cleaner this isn't kind of like a hey when I need you I'll call you is that cool whenever you're open are you willing to come and clean for me it's like hey hey you are my cleaner you're my girlfriend exclusivity here we're not dating I don't want you dating around with other airbnbs when I say my place is open I need you there I need that commitment for my cleaner because cleaners are

the Backbone of my business that I can't risk them saying Oh I'm busy today Rob I'm sorry like I'm always looking for cleaners that have the systems in place to make sure they're always at my properties at checkout this to me is a non-negotiable there are some of my properties in my portfolio where I have a backup but it's a very very rare thing but the handy crew in general actually what they call this in prison the handy crew in general there's usually there's A favorite and then there's a second string and then the third

string but really I just can't stress enough how important they are because things do break in airbnbs all the freaking time and a lot of the times I try to have systems in place that allow a guest to sort of problem solve on their own but every so often I need a handyman to step in and get stuff done for me that's going to be your second key player and if if you really think about it the Cleaners clean everything they tell you when anything is broken your handy people fix everything and between these two

people they are the lifeblood of your business but there are still four others that you're going to need if you want to survive this business number three do you like bugs do you like roaches and bed bugs and ticks and every other insect that exists no you probably don't and guess who hates them more than you your guest and guess who will Complain they see a little tiny cockroach this big that's not even inside your house but outside your house and they'll ask for a refund and they'll complain to Airbnb that you have bed bugs

even though it's obviously a cockroach and it's 3 miles away from your Airbnb yeah those are your guests that's how guests act when they see a cockroach like holy crap the world's going to end Rob I demand a back massage and a refund and so that's why you need This third key player which is going to be your Pest Control person plain and simple this should be a proactive thing that you're doing at all of your properties there's nothing worse than getting a bug call really is just such an awful inconvenience at your just at

any time interrupted dinners interrupted movies at the theater all because of a freaking little bug this person is worth their weight in gold you can pay anywhere from 50 to 80 bucks every Single month and they will come out weekly or bi-weekly or monthly to come spray your place but a really nice thing about your pet control guy is that when you pay him this monthly fee it does also usually include emergency visits so if there's a mouse at your property or if there's like a roach or like a ant problem and you call your

pest control people so long as it's not at night and it's during the week they'll usually come out that day or the next day and Remedy that and often times that just puts a guest at ease that you're even trying to fix the problem I've had many times where a guest has reported a bug problem and I got my Pest Control out there they came out and they're like we put out a little sugar ant trap out there and then the guests were like super grateful for it and I didn't have to pay extra for

it because I was already paying the monthly fee there's something you take away from this video Is that most of the time you need to be proactive not reactive you can proactively find Solutions before anything actually becomes a problem versus trying to solve a problem during a guest's day and not only solve that problem but deal with the disgruntled guest and that's why your Pest Control person is crucial number four very important required for most people but not going to be applicable to everyone one and that's your lawn maintenance Crew your landscapers people that mow

your yard the people that pull out weeds this is really important too because a lot of people tend to focus on the inside of their property and then they make the outside of their property somewhat presentable then they often times forget that there's a yard that that yard needs to be cut there's nothing more unappealing than paying 500 bucks a night showing up to your Airbnb and then thinking oh this place looks Like it was deserted years ago and you don't want someone's first impression to think that you have a janky place I actually just

went to my properties yesterday and saw that the landscaper never showed up didn't actually cut the yard so it never been cut before and the grass is like this tall luckily it was just a small strip of grass on the sides of the house you wouldn't really see it unless you looked over but nonetheless it was still there and I was mortified Because I was like oh my gosh all the first impressions of people if they saw this place is that I hadn't cut the grass and it was a super embarrassing moment of self-reflection I'm

going to tell you right now that in general every single one of my Landscaping Crews have been Hispanic and they typically require cash because of this it requires a little bit of problem solving on how to actually get my Landscaping crew paid uh the same is sometimes the case with my Cleaning crew it can be a little tough to pay them sometimes so that's why when I'm negotiating the cleaning crew they have to have an electronic way I can pay them but my landscapers all in all none of them are usually on venmo zel cash

app anything like that I always try to find a landscaper that can work with me and sign up for something like that because they are the hardest ones to pay again I don't want to overgeneralize here Mexican just a friendly reminder For those of you that are probably writing angry comments at right now that's like how dare are you gener listen listen listen listen listen sometimes you just got to know the landscape you're working with you know what I'm saying but here's what I really love about landscapers they usually end up being one of the

most if not the most reliable person on my team because landscapers have routes around the city They're usually organized by day they have certain routes every single week and so they never really miss a landscaping appointment except for the guy that never showed up to my place but I didn't have a working relationship with him I didn't know him so yeah in that particular case it didn't work out but when I know my dudes and I pay them they always show up just make sure that you have a system for paying them and understand that

most of the time they're Not going to let you or be comfortable with you issuing a $10.99 so when you're hiring them you may want to bring up the W9 conversation this actually goes towards everyone on the team especially your cleaners this is always a very finicky conversation with your cleaners buy law if you pay someone more than 600 bucks every single year you got to issue them a1099 it's always a finicky conversation and if you don't issue the $199 then I'm relatively certain you're Going to be unable to write off that income and then

you'll be taxed on that income instead of being able to write off that expense so super important note there also just a quick note here remember I said cleaners don't like to clean inside and outside often times and you get run into issues there you can negotiate with your landscaper to be The Keeper of the outdoor aspect of your property too just know that that might come with the cost number five is going To be the sexy pool guy listen it could it could just be a pool guy but if it's a sexy pool guy

it's great good for you Margaret you're getting out there I'm happy for you anyway you need a pool person and this is really only going to be applicable if you have a hot tub or a pool if you don't then you can I guess fast forward but I'll get through this one relatively quickly Listen People book your airbnbs specifically because You have a pool or a hot tub and so if you have those things they are dirty if there's three leaves in the pool they will ask you to send out your pool person to come

and clean it versus just grabbing the net themselves and cleaning it right this is why your pool person is so important you need them to show up you need to make sure that they clean but the thing is sometimes you might have like I don't know a really weird span of time you might have four or five Days between guest days that come before the next time the pool guy is supposed to come out and then the guests arrive and then it's dirty and then they get mad so you need a pool person or a

hot tub person that is willing to come out on call they do typically charge a fee for this this isn't like Pest Control where they come out for free for house calls and emergency calls pool people do charge a fee and pools are something that you're not going to have as much of An issue with to be honest but hot tubs are real finicky you've heard me on the channel over the years you know that I really freaking hate hot tubs but they are super important to boosting your Revenue they are an amenity that people

seek out and they do break down all the time things go wrong with hot tubs all the time you need a reliable hot tub person this is so important really honestly more than some of these other things because if you don't get that hot Tub clean ASAP your guest will ask for a refund and sometimes you'll have to refund your guest three 4 500 800 bucks I've had to do it so many times over my career which is why I hate hot tubs but when you find someone that's willing to get stuff done for you

and make sure that you have a properly cleaned and pristine hot tub they are worth their weight in gold last one number six this is someone you hopefully never call but it is an important Avenger to have when You need need him and that's your contractor I had a contractor build my tiny house in Joshua Tree California never need to call him except for one or two times where I've had a roof leak the same problem and I called him I said dude there's a roof leak there's guests here can you fix it and he

was like yes stand by my work I'm going to get my roof guy out there so when you think about contractors they typically have a team they have their own Avengers that They use when they're bidding out jobs and they subcontract out and they make a fee on top of that so my particular instance my contractor called the person that literally insalled the component of the home that was faulty and causing the roof leak at my property both times they got addressed very very quickly hopefully you'll never really need a contractor but there are some

things that fall outside of the scope of a handyman handyman can do things like Patch up drywall maybe do a small roof patch but if you need a new roof then your contractor needs to be the person to do that it's not really going to be a handy person handy men are typically the people that you're paying anywhere from zero to let's say $1,000 Max but once you get into a job that's like $11,000 to $10,000 and Beyond that's when your contractor comes into play I probably don't need to harp on why your contractor needs

to be reliable just Understand that there are so many horror stories out there of contractors taking your money and leaving town which is kind of what happened to me when I built my mini golf course I paid a contractor and you walked out $6,000 into the job and I had to bring in a whole another contractor to fix that problem for me so understand that your contractor is not going to be the cheapest person on your team they are the most expensive but they are also the most expensive if you Make them the cheapest person

on your team and so I'll end with this you might be asking yourself Rob how do I find any of these Avengers I'm going to tell you this firsthand referrals if you can get a firsthand referral from your a realtor that's going to be the number one way to do it or if you're in a community of hosts or if you're like in my Facebook group The airb and besties for example you can post there and you can say hey I'm in Joshua Tree I need a handyman Does anyone have recommendations and in theory you'll

get a ton of recommendations so if you can get a recommendation from someone who has used that vendor in the past your likelihood for success is significantly higher and that is it those are your Airbnb Avengers those are the people that you need on your team and the people that are going to make up 80% of all the work that goes into self-managing your short-term rental whether you have one Or 40 very early on in my real estate career you know I was starting this Airbnb thing and very quickly I was out of money and

when you have no money it's hard to progress in the world of Airbnb so I quickly started to realize the importance of partnering up with others and using OPM a very key principle that you should learn early on the concept of other people's money and how to use it and how to use debt to structure your Portfolio so that hopefully you can scale from 0 to $10 million too there really is no right or wrong right I'm always going to say that there's only what's right for you and the partner that you're working out the

terms with okay so I'm going to start with probably the most fundamental partnership that I ever did starting an Airbnb that's basically this concept of you fund it I run it I also say you're the bankroll I'm the brains so in this instance you Work with someone that's really curious that wants to get into real estate and the financing often times that's how I structure a lot of my deals getting started and you're basically bringing the Sweat Equity so this is a really interesting way to get into real estate with low to no money down

so effectively here's how I worked it out with different different sets of Partners again there are so many variations on this specific strategy or technique so You know you'll have to customize it based on your preferences so potential partner would approach me and they would say hey Rob I see that you're doing this Airbnb thing I'd like to get into Airbnb I've got Capital but I have no idea how to do this and they knew that I had several successful short-term rentals that's why they were coming to me so I would say great here's what

we're going to do I am going to help find the property I'm going to find the realtor I Will help you even find the loan officer I will work through the entire process of making sure that questions are answered during the loan process that the communication with the real estate agent never lapses and I'll be analyzing the deal to make sure that it pencils out and makes his money in the long run right that's an important aspect of having a successful partnership so in this instance the partners were the ones that were also bringing the

borrowing Power and the capital so for me my job was to run the entire property and teach them teach them how to do this and so hopefully you know they didn't have to partner up with me again they could go off and do this on their own this was a really good deal for me back in the day because I effectively got a free house for teaching people how to start a short- tental business so remember I talked about variations to this here's how I originally structured this deal With my first sets of Partners I

would say hey I'm going to run this property and it's going to cash flow and I'll actually never take a profit from this property until you're paid back 100% And so this sort of alleviated the idea of like well what happens if I buy the house and you don't do your job and you kind of suck at it and blah blah blah I would say hey no I'm going to do my job I'm going to make sure that this property absolutely crushes it because I Want you to get paid back as soon as possible because

when you get paid back I start taking a paycheck and and I think this is a really good show of Faith while I didn't necessarily have skin in the game I did have this sort of carrot dangling that the more I crushed it with this property the faster I could actually start making money for it if it was a 25% cash on cash return for example I wouldn't really ever get a paycheck from this property for 4 years Now luckily for that property was like a 93% cash on cash return in the first year those

Partners actually got all their money back the first year which is really really cool so now I finally get to dip into the profits and get a paycheck from that property but I had to work for it in a long time and I had to deal with the a lot of cranky guests and I had to deal with bears breaking into my house and I had to deal with bears eating my hot tub cover now was trying To eat the filter okay all right all that kind of stuff for like for a while before I

got to see the fruits of my labor now the other variation to this which I honestly wish I would have negotiated in at the time but you know again any deal is a good deal to me at that time you could also negotiate like a hey you get the cash flow right away but I am going to charge a small management fee to run this property right because then at the Very least you know 2 years if I'm this property if I was charging a 7 to 10% management fee at least I could make a

little bit of money for having to work so hard because you know running a short-term rental business is really tiring but it's even more tiring when you're not making any money right from a logistical standpoint since these Partners were on the title of the property we created an LLC and that's how we formed our partnership I'm not Going to give any advice there cuz I'm not a lawyer I don't know if you know this about me I'm not legally certified to give you legal advice that all makes sense yeah so go go talk to your

lawyer about it but a few different ways to structure that partnership so something I want to bring up about this is that I just want you to make sure that you're sort of taking future you into consideration when you make a deal like this this was a very Good deal for me starting out right I mean it's amazing I got a couple free houses doing it this way but the really hard part about these deals is that I went on to really explode my portfolio the actual Partners ended up going and buying more short-term rentals

as well but not only did my portfolio explode but I started the rawt channel and I became the Bigger Pockets co-host and then I created a whole education company host camp and have all these different Businesses that actually take up a significant amount of my time and so now I'm managing this property over here for free and so I wasn't really ever considering that I would be a very successful real estate investor and so it's actually a little tougher for me to manage this one property this was a partnership that I got into and again

really good deal for me at the time still a good deal for me now but it does require more attention from me because I Entered into this partnership where my expectation was to perform so no matter how much my Empire grows over here I still got to bring it over here right so to be honest I'm not sure that's something that you can predict or plan for but it is something I want you to keep in mind like if you're in the mindset of like I'm going all in on real estate and I'm going to

do this thing forever maybe just consider paying yourself a management fee I think that's Sort of what I'm getting at like if I was getting paid a little bit of money of a management fee then all the late night calls and all the bear calls and all that kind of stuff wouldn't necessarily be so tough so let's talk about the second way that you can do this um as I began to sort of graduate I didn't necessarily like the idea of never getting paid started to realize this after doing it a couple of times right

so I worked out what's called the Waterfall this is a very common term and strategy when you're paying back your investors this was like the 7525 model right so we'd go to investor we would say hey we want 50% Equity we want 50% of the cash flow we want you to finance it that investor more most of the time was going to say hey if I'm paying for it and it's in my name you have no risk why would I do this like you could always walk away at any time whatever right and I would

say well I'm putting In all this work I'm the one that's getting it launched I'm the one that's Furnishing it I'm the one that's doing all this right right so it actually is a significant amount of my time to get into this property so what I would propose to the investor so that you know everybody was happy since I wasn't bringing any cash to the deal is I would say look here's what we'll do we'll do a 75% 25% split on the cash flow all right and then we'll do a 50/50% split on the Equity

I would own a 50% stake in that property now the investor would get 75% of the profits I would get 25% of the profits up until the investor got paid back fully and once that investor got their initial investment back then we would split cash flows 50/50 now you can also work it out in the back end I mean the paperwork gets pretty like you know granular if you do this but you can also work that same waterfall split out with the equity too right if the investor Doesn't want to give you Equity right out

the gate you can work it out to where you get 25% stake in the property 25% cash flows up until that investor is paid back then effectively your other 25 vests and you become a 50% partner Equity holder officially and that's another way that you could structure this type of deal now what's interesting about this 7525 split is that there's actually other ways that you can do this because we would actually walk into Certain deals where the investor weirdly enough did not necessarily care about the cash flow they wanted the equity they wanted the upside

right they didn't want us to walk into this deal own it for 5 years and then the house doubles in value and now we just got all this equity for having basically been a glorified property manager is kind of like some of the objections that we would hear that was fine like for us we're always in the mindset of like Hey We're going to kill it and by killing it and bringing value to the partner we're going to get a free house out of it right so another way that we would structure this is we

would say all right obviously you care about the equity you care about the appreciation so we would actually work out to where they own 75% of the equity of the home we own 25% of the equity of the home but we get 75% of the cash flow 75% of the profits they get 25% so we' sort of like flip-flop Right and the reason was they wanted the equity in the home so they could basically get the tax benefits of owning short-term rentals and real estate in general and while it was important for me to have

that on the flip side we were getting 75% of the cash flow they get their tax liability reduced we get higher cash flow win-win for everybody strategy number three I've probably given you like more than three but this is just your traditional 50/50 Partnership all right there's a couple of different ways that you can do this um but let's talk through it so one one example of just a straight 50/50 partnership is you put in 50% of the cash your partner puts in 50% of the cash you go and you get a loan together and

you run this as a business most straightforward version of a partnership but sometimes you walk into a partnership where you may have a ton of cash but you got bad DTI debt to income Ratio you may have bad credit but your partner has really great borrowing power and so you may be able to walk into an arrangement where you say hey Caleb let's go in on a on a loan together I'm going to bring the cash you're going to bring the borrowing power and that's sort of one of the really cool symbiotic ways that you

can work with somebody uh it doesn't have to be 50/50 I mean I think there's a few ways you can do it I think you can say hey I'll bring 75% of The cash you bring 25% of the cash but you bring the borrowing power I also think that's fair right there's a few ways that you can slice a 50 50 partnership or you may even be in a scenario where you say hey I've got a lot of money congrats good for you must be nice but I have no time and this actually goes into

that first model we talked about but you bring on a partner who has a ton of time but maybe not a lot of money maybe your partner can Bring all the money for the Furnishing so that they have a little bit of skin in the game and you just approach it as a 50/50 partnership I've done this several times in my portfolio too again no right or wrong here it just really depends on the person right if you're friends with somebody and you're walking into a partnership you may want it to be a little bit

more Equitable so that there's no dissonance or no uh resentment or anything like that but When I'm working with just like an investor that I don't know and it's purely business then at that point that's when I can be a little bit more stringent and Hardline certain terms that I want right with someone that I know and partnering up with I'm not really trying to lay down the law and negotiations like I want it to be fair for everybody and of course I want that for an investor too but an investor is watching out for

their best interest and You're watching out for your best interest and so there's always a little bit more negotiation that may go on with an investor that you're not super acquainted with so okay so that's effectively three ways I've structured Partnerships one where I bring no money and I will say that on that one that became my most popular model cuz investors would come to us and we would basically say you pay for everything and on top of that we're going to charge you A what used to be a 7% management fee we now charge

more but we would say Hey you bring the money you bring the borrowing power we're going to run it and then we're going to charge a 15% management fee so that we are making money along the way because it does take work to manage these properties this was easily our most popular method and then you have the waterfall method in this instance a 2575 where you pay back your investor first they get 75% of the the Cash flow profits and once they're paid back on their initial investment that waterfall basically drops to a 50/50 equity

and profit stake and then of course there's a last one we just talked about the 50/50 a little bit more traditional partner brings in 50% of the money you bring 50% of the money your partner brings all the borrowing power however you want to work it out but you're basically 50/50 Partners on the property that you purchase so there're Going to be a lot more nuts and bolts to something like that but actually what I'm starting to move towards now more and more these days is just basically straight debt where I pay an investor back

a percentage on the money so for example an investor says hey Rob I got 100 Grand instead of me saying great let's put that 100 Grand into this property you're going to finance it we own this property 50/50 I always have to report back to that investor there's a Lot more communication there's nothing wrong with this method because I've done it a lot of times what I would prefer to do is say hey great thank you John the investor what I'll do is I'll take that $100,000 and I'll pay you 10% on that money over

the course of a year and that balance will balloon at the end of a year so in that instance 10% of $100,000 is $10,000 at effec ly be paying that investor interest only $833 a month and then on month 12 that Balance would balloon and not only will I have paid him $110,000 in interest I got to pay them $100,000 back so what's an instance in which that model Works uh there's actually a few this would be like if you want to flip a house for example and you want to get hard money a lot

of the times hard money lenders require you to bring a down payment for them to lend you the money so you're basically taking investor cash and you're taking that investor cash and You're using it as a down payment on a hard money loan and then you're using that hard money loan to flip the house and then you sell the house make a profit pay back the hard money lender pay back your investor of course you will have paid interest doing this but theoretically if you ran the numbers and calculated everything correctly you will have made

a profit and thus the interest is hopefully nominal compared to the profit that you make that's one way that You can do this that's the more common way that I see people utilizing OPM other people's money what's really tempting about this model in particular is that the investor gets no equity no skin in the game and typically when you work with an investor like this they're not charging you points right so if you go to a hard money lender and you say hey I want to flip this $500,000 house they're going to say great um

you need to bring 20% down I mean there's Different options out there but let's say you need to bring 20% down we're going to let you borrow $400,000 but we're going to charge you two points on that two points are two percentage points on that $400,000 balance is 8,000 bucks so you'd basically have to pay $88,000 on that loan just to originate it on top of the 10 to 12% interest that you're paying that hard money lender now in an ideal scenario best case scenario you could raise the money and pay an Investor 10% debt

on $500,000 and you never have to even go to the hard money lender you can just work straight with an investor pay them no points pay them interest they're happy to make 10% on their money you sell your home you make a profit uh you guarantee it with the promiser note there's you know talk to a lawyer about how you want to do [Music] that this is the simplest way that you can use OPM other people's money to Advance like your house flipping business so now you're probably wondering how can I use OPM to fund

a like a real estate purchase that you don't necessarily want to flip and you want to hold long term so there are a couple ways that you can do this but it's a little tougher cuz it'll cost you some interest to do it this way but if you go and you raise money from an investor it's not necessarily super easy for you to then deposit that money in Your account and go buy a home right like most banks are going to see that as a red flag they're going to say hey where did you get

this money from and then you explain oh I borrowed it from this investor and they're like oh you're in debt there and it's like a bunch of red flags typically the best way to utilize OPM is hopefully you you already have money you have the money to qualify for the home but maybe the home needs $100,000 or $150,000 in renovations you Know like like cosmetic touch-ups maybe you want to install like you know pretty expensive amenities like hot tubs a pickle ball court whatever it is right then maybe you need to also fund the Furnishing

so if all of that comes out to Let's say1 $150,000 you can go and borrow that from a private money lender and you'd want to make sure that the monthly payments on that on top of all of the monthly payments of the mortgage itself all pencil out in a way that Still makes you a profit every single month this gets pretty Advanced you want to make sure that you're analyzing correctly you want to make sure that you're analyzing conservatively cuz at the end of the day you have a fiduciary [Music] responsibility to pay back all

of your lenders otherwise guess what you're going to get sued and no one wants to get sued right so anyways that's one way you can do it $100,000 or $200,000 you May be asking yourself do people just have1 to $200,000 of disposable income chilling in their bank accounts and uh you'd be surprised actually a decent amount of people do [Music] there's actually this strategy that I've just been hearing more about it's very funny it's called HELOC Arbitrage all right so if you go and you take out a HELOC a home equity line of credit which

is basically a line of credit against The equity in your home it gets super interesting because the interest rate on that let's say is four or 5% a lot of people just have helocs they have the option to pull money out of their Equity but they don't use them right so HELOC Arbitrage is basically where someone lends you money from their HELOC they're paying 5% interest on it but you're paying them 10% interest so they're actually making a 5% Delta on money that they weren't using anyway it's free Money it doesn't cost them anything for

you to use it instead of just letting it sit there and collect dust they're making 5% without having to actually take money out of their bank accounts so this is a really popular strategy actually have a student that raises private money this way feel good to all of his friends and family and cousins and everybody you know say hey if you have a helck I'm going to pay you 101% and you're going to make 5% on your Money for having done nothing and in that instance they own no equity he has all these short ter

rental property that he's cash flowing on and he's built like a 10un portfolio that's making him tens of thousands of dollars every single month which is really really cool and a really smart way to utilize OPM woo all right are you with me was that a lot I feel like it was a lot I'm sorry watch that one again and if it didn't make sense the first time it probably won't Make sense the second time cuz I feel like I was just rambling but this is really just a a little Peak behind the curtains of

how I've structure debt with so many people out there and by the way if you're someone that has like 2 3 4 $500,000 a million is just chilling in your bank account and you're like hey man I'd like to make some interest on my money it's not doing anything right now let me know I'll leave a link in the description down below for how you can Invest with me before I end this video I just wanted to quickly cover how you can get private money right I think this is the question that a lot of

people have it's like well hey the structures are cool but how can I actually go out and get private money I'd like to actually make a video about this if that's interesting to you let me know in the comments down below and I'll do a series on raising private money but one tip that I just wanted to give you was if You're successful in the world of real estate or in the world of short-term rals put yourself out there make content about it post about it on Facebook post about it on your Instagram post about

your successes and your victories and stay humble and I promise you that if you're crushing it and whatever Niche you're in in the real estate world people will reach out to you most of the partners that I had approached me to partner up with me and offered me money Before the raw built Channel even existed yeah that's right it wasn't like I had this platform and then all of a sudden my friends wanted to partner I partnered with people before I started a YouTube channel so if it's possible for me I know it's possible for

you and and the only reason that they ever reached out was because I put myself out there so if you're on this journey of real estate and you're building an empire tell people that's the only way that People will ever find out that you're actually having success in this world okay all right I always say this this is like a really random metaphor that I came up with the other day but let's say oh man this is dumb I'm I'm going to end it with the dumbest metaphor ever let's say that you open up a

taco shop I think you catch what I'm saying put yourself out there make it known what you're doing and I promise you money will come and find You there's this thing going around right now uh it's like this idea of of an impending Global recession I don't mean to laugh it's a very serious thing but I wanted to talk about how I'm shifting my strategy my business strategy in Airbnb there going to be five business models SL strategies that I'm going to be investing in very heavily in the next year or so and I wanted

to share it with you because I just think with everything going on I Think it's fair to step back and look at what's working what's really working what's not working and then basically rest strategize and hopefully this helps you in your Airbnb Journey if you choose to get into Airbnb and also I'm going to get into some pretty harsh and tough love at the very end of this video about investing in airbnbs in this economy and you should probably hear it out rewind and watch it again because it's important and I want you to understand

The harsh reality that I'm going to be spitting out your way so let's get into the five business models that I'm going to be investing in in the next 12 to 18 months and I'm just going to put it out there number five going to knock you off your rocker bit going to be like what you Rob you're going to be doing this yes I am all right but there's a reason for it so stick with me until the end okay so with that let's get into number one glamping my tiny house Village in Tennessee

is back on baby you know people keep asking me about my tiny house Village that I talked about for like literally a year and the fact of the matter is this when I left Tennessee about a year ago I actually had my permits for that tiny house Village but a lot of other projects came into fruition because of me talking about the tiny house Village and so weirdly enough I push paused on the thing that I set out to do because the thing that I set Out to do LED out to way cooler developments for

example I'm currently working on permitting a 60 unit Glam site in Arizona it's going to be a multi-million dollar development and basically the super legitimate permitted version of my prototypes that I started many years ago you probably remember my tents my air streams and everything like that they made really good money we really were Scrappy with how we put them together and they serve their purpose And what I was trying to do which was cash flow and make money the only way to go legit and scale up is to spend a lot more money on

civil engineers and permitting and all that kind of stuff so from now until the end of 2022 I'm going to be focusing on building my Dome Tree House Village in Tennessee and then in 2023 hopefully we can start kicking off the the groundbreaking of my 60 unit development Nam to be determined but I believe that the number one asset class Within Airbnb that's going to make the most money are unique stays and Glam sides we got a lot of students doing it right now my tiny house still does relatively well I know a lot of

people that are making a lot of money in glamping and I'm just so frustrated that I can't jump in sooner because I'm going by the book and I'm going through the excruciating red tape to make it happen and I want to teach you how to do it so with that said glamping is going to be My number one Focus all right second business model strategy that I'm going to be leaning into are more medium-term rentals I've done a couple videos on this that really talk about that business model but medium-term rentals are effectively month to

month stays 30day stays or more I have a really successful medium-term rental in LA right now and honestly I was doing a video series on medium-term rentals and my medium-term rental had like a 3E Break in it like a 3E Gap where it hadn't booked out and I was like holy crap like I'm talking about how much I love medium-term rentals and I'm not even booked and then I was like oh my gosh do I suck do I suck at this and then like you know Airbnb always has a magical way of pulling through for

me but basically right before I launched those videos I got the biggest reservation I've ever gotten to date I'll put it right here and it was for Like $33,000 $34,000 that was just absolutely Bonkers that specific reservation comes out to about 5650 per month my mortgage on that property is like 4,200 bucks but here's the cool thing I also have my tiny house in the backyard that I also rent as a medium-term rental and I locked that one in at 2500 bucks so total that property grosses $88,000 on what's about $4,800 of expenses so yeah

it's a little bit more of a set it and forget it Strategy not really you still have to like be a host and everything like that but medium-term rentals are just way more chill than a short-term rental you host a lot less people you still cash flow you still make more than you would with a long-term rental and if you're like me you can actually use the property for yourself like I've stayed at my own medium-term rental for like I think 4 to 6 weeks over the course of the last year so it's been great

so it's A really great lower management aspect of short-term rentals so I'm actually looking to pick up one in La I'd like to snag a few here in Houston and uh I know this is crazy but I actually want to get a relatively nice medium to rental in New York I'm just trying to comp it out a little bit more in New York it's a little bit tough but hey actually if you have a medium-term rental in New York send me a message on Instagram and tell me all about it okay anyways medum Tentals great

cash flow low stress really great entry point for newbies really great strategy for people that are really busy like me okay strategy number three which honestly isn't that new it's not going to be that groundbreaking but national parks all in all examining all of my properties that are in or around national parks they're honestly all doing relatively well I've got my Joshua Tree tiny house that I talk about I'm going to do an update on That by the way but it's not making as much money as it was at its height bookings did slow down

a little bit I don't even want to say that I I don't want y'all to get scared they they normalize a lot I think my first year I grossed 83,000 and I expect I I'll probably gross like 60,000 for 2022 is my guess which seems like a big hit but that's an infinite cash on cash return for me and that was a new construction and I was able to pull all the money out And cash out refi so any profit is good money for me but still making very solid money there and then even like

one of my my I wouldn't even say a straggler but my worst performing National Park property that that was my Tennessee house that I lived in for a year that was never even intended to be an Airbnb because I was going to to build a tiny house Village so the house is there and I live there and I plan to make all my money on the tiny house Village which I Still do but just to cover bills I threw this house on Airbnb and I think I'm actually still going to pull off like a 20%

cash on cash return there's actually one thing I could do to really increase my revenue and that would be to build a hot tub and the reason I haven't done that is because I want this like really epic hot tub that's like handeled on a deck and it's going to be like a $30,000 project and not just anyone can build it uh it's a whole thing but basically even My straggler is getting me a 20% return so because of that I'm just such a big believer in National Parks but I actually want to Branch out

to other national parks like Zion y0 and Yellowstone just to name a few and not a national park at all uh I don't even know why I'm saying this in the same category I actually want to buy a beach house in like galison or Crystal Beach too and that is more of a hey if I can cover my bills and have a beach house And like actually be able to have my dream which is to have jet skis I've always wanted jet skis that'd be totally fine but I actually have talked to a few people

that are doing well down there so maybe even diving into some of those vacation destinations that I say to lean into as well all right the fourth strategy business model that I'm going to be investing in in 2022 2023 is luxury but hear me out right now I'm looking to get into the Florida luxury Market however with that said me getting into luxury I will not be getting into luxury at Market rates I am going to be lowballing the crap out of luxury sellers right now because I just think that that's where the best deals

are going to be this year interest rates are going to be high not as many people are going to be able to afford a 1.2 million to $2.5 million house and thus sellers who are serious about offloading that asset because they need to move or Because they want to buy a different house will have to accept lower offers that's just a fact so yes I want to get into luxury but I suspect I'll be making 12 to 20 offers for every one that I get accepted and there's a couple reasons that I want to focus

on luxury specifically a I think I'm going to get a big discount but B I'm doing it for the cost segregation aspect it and the tax benefits being able to bonus depreciate that asset basically slice And dice my tax bill so I want to get into more high dollar properties I bought one in Scott sale last year that one is a good example of what I'm talking about it was it at like 3.4 or 3.5 can't remember and I think we offered like 3 million then they accepted 3.25 million but they gave us $75,000 in

seller credits that felt like a pretty good deal at the time that one we bought right at the beginning of the slow season and we've been really riding Out the slow season so I'm excited for January to come around but from January to May it's going to be good it's going to be good especially because the Super Bowl is in Scott sale this year so I'm still feeling pretty good about luxury but it's got to be the price that I demand this is not a model that I really recommend for any newbie investor I bought

this scot sale property I can cover the $17,500 mortgage when I need to I'm not worried about it this is not Something I'd ever want for the novice or even like the middle tier investor you should really only be buying properties when you're like incredibly experienced so don't hear this and be like Rob said I should go buy a $3 million house do not do that do not do that you're probably not ready for it no offense son of a wow okay okay all right last one number five all right just hear me out the

business strategy number five that I'm going to be getting Into in the recession the next year 12 to 18 months is rental Arbitrage now I know I know I said I never did I would never do it I made a whole video about why you should never do rental Arbitrage and I've had some time to reflect and so basically here was my argument rental Arbitrage is all about cash flow but there's no appreciation it's a temporary business when your lease is over your business is over and then you're stuck with all this furniture that you

have to Sell or give away at a loss whereas when you buy property you actually own that property you build equity and you build wealth that way that is my genuine point of view there however a lot of you wrote in the comments like hey Rob I understand what you were saying about owning property but I don't have money to own property and I really want to do this and I love your channel and I love learning from you but I can't actually apply what I've learned from you to my Own situation and then and

then some people were like oh it's easy for you to say you have money you can buy houses and then the nail on the coffin was when some of my host Camp students actually commented on the video and they were like hey Rob my student of yours and I I need more money I want to make more money and I just I would really appreciate if you could give some thought to teaching this cuz I think it would really help me so while I don't Necessarily condone going all in on the rental arbitrage strategy I

do want to try it and I want to master it and I want to learn it and I want to teach it to you all the raw built way there's a lot of other channels that of people that are way more experienced about it go watch Airbnb automated I guess it's like he knows what he's doing he's done it at scale it's not my wheelhouse but I do want to teach people how to get started in real estate with no money I Got a lot of content coming down the pipeline that will also teach you

how to do that but I recognize that rental Arbitrage is a stepping stone for a lot of you so what I'm going to try to do is is basically take you through the Journey of starting a rental Arbitrage business and then basically scaling that into owning your first property and I think if everyone at home and then my students can commit to taking my advice on doing the rental Arbitrage thing but Taking all that money and not using it to build like a thousand unit rental Arbitrage business but to use it to build a real

estate portfolio I'm going to teach you how to do it and I'm actually taking on students in host camp and I'm going to work with them and I'm going to guide them through their first rental Arbitrage deals and I'm kind of excited about it because it's just going to it's bringing me back to my days when I got started on Airbnb when it was like Really new and exciting and Rental Arbitrage is how I started and so I'm going back to my roots basically and I think it's a really good model for the recession and

you know for a lot of people that just are super scared of the 6 to 8% interest rates and really don't want to leverage themselves to their eyeballs in debt which is super Fair signing a lease is a lot lower stakes and a lot less scarier than signing the mortgage papers so basically I'm going To do some rental Arbitrage I don't want to be too Cavalier about this okay the five business models first of all all they they all require work I think a lot of people were spoiled I think over the last 3 or

4 years super easy to make money on Airbnb no matter what your experience no matter what your background was and hopefully I helped people do that but we're going into the time where the the dabblers the Casual investors the people that are mailing it In I just don't think that they're going to survive I think we're going to be seeing a lot of people exit the Airbnb industry for better for worse I'm not really sure but at the end of the day we're going to have to bust our asses a lot more than we were

over the last 5 years and that's okay and I really do stand by my idiom here can I call it an idiom Airbnb isn't hard but it is hard work and so unless you're actually willing to commit go all in give like Passion to this like give your time and effort lose sleep over it and really just be on your phone and be ready to answer guests and be ready to provide them good experiences and bend over backwards unless you're willing to do that for the next 12 to 18 months then simply speaking this is

not the business for you all right so I'm going to be hammering you on this moving forward because as much as I strive to make Airbnb and real estate approachable to The everyday investor I'll always stand by that I really want anyone who actually watches this Channel and takes action and starts an Airbnb business to be successful and so that just means that I have to talk to a much smaller group of people the people that are serious about this because times are getting serious all right so I don't know if that's I doubt that's

motivational but hopefully it's a little bit of tough love and we can use a Little bit of that every so often and that's how I'm investing in Airbnb and yeah the recession is going to be hard for a lot of people and then for some people it's going to be really great so which one of those groups you fall in I don't know but I'm going to do my best to help you regardless of what you decide see I want a riff on this I like a good intro riff you like a good riff you

want me to riff all right give me a word give Me a one word suggestion and go no okay ma'am uh can I take you out no oh I'll start the intro that way uh I think I would like a Barbacoa Taco uh do you think uh you could you could change my flat tire how me yes you what no could it be oh yeah oh yeah see how you edit this together I won't you just have the I just gave you the greatest intro footage I don't even know what that ended up being was

that a funny intro let me know cuz Caleb hated It the entire time but I can already tell it's probably the best intro that's ever been on the ra built Channel hello everybody my name is Rob welcome back to the raw built Channel I feel like I haven't intro a YouTube video the old way in so long today we're going to be talking about medium-term rentals also known as midterm rentals just basically not quite short-term rentals and not quite long-term rentals but just right right in between both of those a Little sandwich in between both

of the different types of rental asset classes so let's go back to the beginning here and talk about how I found myself switching from short-term rentals to medium-term rentals when I built my tiny house in Los Angeles California I expected that to be a short-term rental for its entire life because obviously I'm an Airbnb guy then the pandemic hit and I switched it to a medium-term rental sort of by accident I didn't Really want a lot of people staying at my house during that time travel nurses needed a place to stay and so for a

year year and a half it was thriving as a medium-term rental then when the dust started to settle a bit I went back to the short-term rental strategy and it was going super well I was making really great money but it was around this time that La really started enforcing the short-term rental ordinances that they had put in place over the last year or So which basically really only allowed me to Airbnb my tiny house for 180 days out of the year and then if I wanted to Airbnb it past that I'd have to pay

like 850 bucks to get an Extended Stay permit goal which is honestly all doable however because I'm not a resident of La anymore I don't have an LA license and so pering there for me has just been more work than I've been wanting to deal with so I found myself moving back to medium-term rentals on Airbnb because it Started making more and more sense for me so what exactly is a medium-term rental so let's talk about this for me a medium-term rental is a stay that is a minimum of 30 days but it typically ends

up being less than 12 months it's usually month-to-month rentals and a lot of the time those month-to-month leases can average anywhere from 1 to 3 months now on top of the length of stay here the other component of a medium-term rental is that you fully furnish it as You would in Airbnb now the way that medium-term rentals differ from your traditional short-term rentals is that a short-term rental technically by definition is a stay between 1 and 30 days and then a long-term rental is typically a lease that is 9 to 12 months or it can

even be longer than that the difference here is that you have a tenant in place that furnishes the place themselves and they pay all of their utilities the short-term rental you pay All the utilities you furnish it same thing with the medium-term rental and then long-term rentals are sort of their own Niche and just a whole different Beast I think that mid-term Ral are still very much in the heart of short-term rentals which is why I really classify these together and I think that they can work in tandem with each other super well for example

let's say that you buy an Airbnb in a highly seasonal place like a beach typically with a Beach short-term rental you're going to make like 80 to 90% of your income from the months of May to August and then from September to April it can be a dead zone and you won't be making a lot of money on short-term rentals and you'd be lucky to break even a lot of the months that so that's why when you have a seasonal Airbnb and you do make most of your money in those 4 months you want to

stash as much of it as you can away for the months that you aren't going to be Producing a lot of income this is where the medium-term rental strategy really comes into play because a very common strategy especially in Beach markets is that maybe you have a thriving Airbnb for 4 months out of the year but then the other eight months out of the year you rent it to snowbirds hopefully at a profit but at least at a break even so you're able to cover all of your expenses during the down times and that right

there is a very perfect scenario Of how midterm rentals and short-term rentals can be symbiotic together but if you really want you can eliminate the short-term rental strategy all together and just go all in on medium-term rentals which is what I do with my La properties and honestly I'm loving this specific Niche so much more these days for so many reasons for one you have way less guests to deal with on average I'm am hosting between four to let's say eight guests per month on any given Short-term rental strategy however with a medium-term rental I'm

just hosting one set of guests per month and a lot of the times these guests are staying for more than 1 month on average my medium-term rental stays are anywhere from 2 to 3 months so let's say that my average is 2 months just to keep it easy that means that I'm really only dealing with six sets of guests throughout the year which is a lot less than a typical short-term rental stay so the reason I Like this is because it's a lot easier to deal with six sets of people throughout the year versus 72

sets of people if I were just averaging six days per month on any given Airbnb you can imagine keeping up with six people is a lot easier right but also there's this notion with the medium-term rental when you're staying there for 30 days at a time or 60 days or 90 days the people sort of feel like it's their home and they live in it right and so they feel a Lot less entitled to bug you about small stuff than a Airbnb guest might if small things start to happen around the home or if they

run out of supplies or whatever because they live there and they accept that that's their home for a couple of months at a time they really just aren't quite as high maintenance as a short-term rental guest who feel like they're getting a five star hotel experience and have to bring every little thing up to your attention now I'm not saying I don't like to provide a good experience for these guests but what I am saying is that when I'm dealing with a small group of people every single year and they're not really bothering me very

much throughout that year it's a good thing it's way less gray hairs than the 72 groups of people provide me every single year and this is also a really good solution for people that do have 9 to- 5 jobs and they're scared of going right into short-term Rentals because there is that perception with short-term rentals that you're going to be managing it 30 hours a week and you can't work a full-time job and this and that all that stuff is not true you can automate a lot of your short-term rental business talk about it on

the channel quite a bit however if you are nervous about hopping straight into short-term rentals starting out with the medium-term rental is actually a really great strategy because it's so Much easier to manage cuz you're just not dealing with turns and cleans several times a week so if that's one of your bigger fears then medium-term rentals are an obvious solution for a way to dip your toes into the short-term rental game and lastly and perhaps the most important and my favorite reason that I like medium-term rentals is that they get around short-term rental laws so

remember when I said that medium-term rentals are typically 30 days or more That is no longer classified as a short-term rental that's actually just classified basically as a long-term rental so any short-term rental laws or regulations that might be put into place and Outlaw you from airb being your house don't really apply on the medium-term rental side of things which is exactly why I converted my Los Angeles places to medium-term rentals because I'm still able to rent them on the Airbnb platform but I just set my Minimum to 30 days at a time so if

youve bought an Airbnb before and you've been regulated out of the city or you want to buy in a city and your biggest reason for not getting into Airbnb is regulation medium-term rentals are always a very solid backup plan I always say that when you're analyzing a short-term rental you should have a backup plan to make it a long-term rental in the case that you know it's the fan right but nowadays my point of View on that is changing pretty rapidly and I would say any short-term rental investment that you're thinking about making should work

as a medium-term rental that way if you get regulated you always have that backup plan as a matter of fact this is why one of my students her name is Vita found herself in the medium-term rental game so why did you decide to go the medium-term rental route well in um the Anaheim House in Anaheim California we wanted to make This a vacation rental but anim had banned short-term rentals they were not allowing more new short-term rentals to uh get permitted so um we made it a long-term rental and then I found out I found

you Rob and found out that there was such a thing called midterm rentals and decided to move forward with that so after the lease we went forward with that so given that you're not doing the short-term stays and charging a lot of money you Know for 1 to 7 nights St is medium-term rental a profitable way to get into the Airbnb game yes it is is I started renting for 6,000 a month and I wasn't sure about that I'm like oh my gosh that's a lot of money but it worked per month what is your

growth 7,000 a month that's what we're listed for how did it all pan out like have you been liking the medium-term rental route I do I do like the median term rental route because it just seems less stressful Nice okay can I get a digital high five here thank you so much that's awesome host Camp high five woo you know have misophonia I have misophonia it's a medical condition I cringe at the sound of others eating leave that in leave that in that's a funny transition Steve by the way if you're interested in getting into

the short-term rental game or the medium-term rental game after watching this video and you just don't really Know where to start or you really want to scale up your Airbnb business and learn everything there is to know about being a successful short-term rental or medium-term rental host consider booking a free call with my team over at host camp.com the host camp mentorship program hosts over 100 calls every single year ranging from design to automation to analysis and everything in between so if you want to learn how to do this whole Airbnb thing directly for Me

book a free call with my team over at Host camp.com also if you're a host camper say what's up in the comments so anyways let's get back into it there are so many reasons why I'm really loving medium-term rentals right now so how much money can you actually make with the medium-term rental there's a few different ways to calculate this but typically what I do so I find what I want to make with a short-term rental and I'll discount that anywhere from 30 To 50% so then if I would typically make $5,000 on a short-term

rental then at minimum I would be making 2500 bucks as a midterm rental and I'm using my tiny house as an example here and on a long-term rental I'd be making anywhere from 13 to maybe like 1,800 bucks a month it really just varies on the scale typically from a profitability standpoint there's long-term rentals then medium-term rentals and of course short-term rentals and I think this Really varies based on how much work you're putting into it long-term rentals are typically the least amount of work midterm rentals are a little bit more work than that and

then short-term rentals of course not completely passive although you can automate a lot of that business but it's obviously the most amount of work out of all three but there's a few ways to analyze a deal and calculate how much money you can make on a medium-term rental so if you're Looking to get into the medium-term rental game how does one comp out how much you're going to make every month there are other midterm rentals that are um in the area so what I did is I looked on Furnish finders and then I on Airbnb

I did my you know comping on Airbnb as well and of course it does great for short-term rentals if I could do that you can also look for those 30-day rentals and and so I looked at that saw how much they were charging per night And thought okay and then I was told to double my long-term rent so that came out to about 6,000 so how much money are you making with your medium-term rental right now we're profiting uh about 33400 a month crazy she just said that she's making $3,400 a month in profit on

her medium-term rental 3,400 bucks typical long-term rentals you're hoping for like $100 to $500 of cash flow so the fact that you can make over $33,000 a month on medium-term rentals already starts to Show how much potential it has when you compare it to long-term rentals obviously it's going to make more money there but even short-term [Music] rentals and that's it just a cool easy 3our plus video that teaches you everything you need to know about starting uh optimizing uh sorry I've been I've been watching this for 3 hours I'm out of my mind here

I've been watching this along with you as you Watched it I'm sure that was just easy to sit through watching me and all my weird jokes and all of our weird edits thank you very much Caleb but I hope you learned something and I hope you heard my story and I hope it inspired you to think hey maybe I can do this too because I know that you can like I said at the beginning of this video I have devoted years of my life to putting out free content for those of you that want to

get into this game because I Genuinely want this for other people this type of content did not exist when I started 7 years ago and I wish it did but here's the good news I learned the hard way so that you could learn the easy way and I hope I made this easy and digestible for you I appreciate it if you made it to the very end honestly that really does mean the world to me that you stuck with me for more than 3 hours and if you did that makes you a Super Fan let

me know in the comments Down below go down to the comments and comment Super Fan so I know who you are and I will go and I will respond to every single one of you as a token of my gratitude for hanging with me so go do the short-term rental thing you got this I know you can do it stop being scared take action actually it's fine to be a little scared you should be a little scared but still take the action and if you if you do your Airbnb dreams will come true all right

don't forget to like And subscribe catch you on the next episode of RA built oh I knocked over a water bottle see you bye