The REAL cost of owning an Airbnb (that no one talks about)
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- Опубліковано 6 лют 2025
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The information in this video is for educational and entertainment purposes only and does not constitute financial, legal, or professional advice. Always consult a qualified professional for advice tailored to your specific situation.
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Airbnb has been VERY VERY good for me !!!!!! I am retired. I own one property ( in Puerto Vallarta , Mexico ) and I am making 3 times more income than i did when I was working back in the states . All the numbers just worked out way more in my favor . The house is bought outright and took 6 years to pay for itself as of Dec 2024 from here on out it's ALL profit . I'm usually booked at +/- 50% meaning i average 14 to 17 nights a month . That's all I want . I am 5 stars. superhost, Guest Favorite . I do large groups up to 16 people (7 bedroom suites ) rooftop pool .. VERY competitive with my peers for my level of lux. Off season at 3 night min stays $499 weeknights $550 weekends plus $220 cleaning *** In season at 4 night min stay $550 weeknights = $575 weekends plus $220 cleaning . 10% off after 7 nights . IT WORKS ! But don't be fools it is not really a self running business . you gotta put in the work and you need to create a great team of people working for you .
We are considering buying a beauty in PV. Love reading your comment.
@@YesItsMeGuys68 Great hearing about your positive experience in PV. We have one in CDMX which has worked great and are looking for another opportunity maybe in a resort town. Is yours 7 independent doors or one large property with 7 rooms? Thanks for sharing
Have a 5 BR in Amapas , heated pool , amazing view,. Would you say these kind of properties are worth putting up for airbnb?
@@ChefAlexMT I have a few ways of splitting up the house .. * 7 independant suites .* a 3 suite apt * another 3 suite apt.* a 4 suite apt. * a single suite apt. * a 6 suite house or what I usually do ... a 7 suite house
@@niramganem3645 Yes of course BUT it's VERY oversaturated already with over 8,000 Airbnb doors listed in PV . You need a feature that is unique, that sticks out to grab the attention of would be guests.
Thanks Rob. You have been my youtube mentor since 2020 and inspired me to buy my first property as a BRRRSTR-househack in 2021. Going on 4 years as a STR host and I can surely say I'm ready to pivot to LT 😅
Long term is the better option IMO for real estate. I’ve never had the guts to do Airbnb
@eliasdiaz2634 I bought near 7 national parks in Canada. Tourism is super high here, so it just made sense. Plus, the property already had 1 airbnb on it.
@eliasdiaz2634 maintenance has been really high, and I'm looking to pass the torch to the right property manager.
Yep I pivoted from my beach airbnbs back in 2023, I saw the Airbnb income slowing down and pivoted to ltr.
We run a 2 door Airbnb resort property in Mexico at a 75% profit margin. We own the property and property taxes are $120 USD a year. CAPX is super cheap here (I can get a new 2 ton minisplit installed for $600). We net over $30k USD per door per year and our ROI on our total investment is 27%. Working to add three more doors soon but we have to wait until we have cash to expand. We look at it as part of our investment strategy which at a 27% return beats all of our other investments by 3x-4x with almost zero risk since our fixed expenses are less than $100 per month with no guests and they cannot seize your property for nonpayment of property taxes in Mexico.
In what city did you invest?
Hope that continues to work for you. I went to Mexico in 2017. It is too unsafe for US citizens now IMHO. I won't be back and I'm not alone.
@@ChefAlexMT Loreto, BCS.
@@andyspinball We live in Loreto, BCS Mexico, and it is safer than anyplace we have lived in the US as an adult. Everyone who visits here agrees and that is probably why we are booked over 90% for this high season and already booking for the next two years. We are increasing our rental prices 15% in 2025 and we are still well on our way to 82% yearly occupancy even with only a six month high season. The town is growing 20% YOY. So a lot of people are still coming to Mexico!
@ Had never heard of Loreto as a destination. Is your clientele more American or Mexican? I guess we always make the mistake of just looking at the large markets like PV or Cabo and dismiss other markets that may have much better cash flows and ROÍ like Loreto. Thanks for sharing.
I'd like to see of part 2 of course!
damn this is really making me reconsider what business I want to start next. thanks for the video rob!
bye. I love less competition unless you want to make money with it then hello
6 year 4 property host here. Down to one, the others are back to LTR with decent signed leases. Best thing I ever did was build ADUs and pay them off during this 6 year period. Want to know how to be successful with a STR in 2025? Own the property outright. You can't compete with me!!!
Good stuff Rob!
Now add 20-25% in expenses for those who DO utilize a property management company -- then you're in REAL trouble if you fail to underwrite properly.
I’m a RE investor, I have a long term renal hoise that is cash flowing and doing great. I am about to buy my first Airbnb property and it’s a little daunting, but this channel is teaching me a lot!
Thank you so much for this breakdown.
The more I invest in real estate the more I get convinced stocks and options are WAY better
Having owned 4 rental properties myself, I feel that man. I’ve always been a real estate guy but it’s crazy how people are basically retiring just from timing stocks or cryptocurrency
@@eliasdiaz2634 All time high today...you could have closed your eyes and clicked buy haha lol
Reallll
If that is your opinion, that means that you are doing it (investing in real estate) wrong.
@@improvechannelonrealestate5487 I'm in a low cap rate market (CO), with a lot of competition for off-market deals and deals under 75% ARV are rare or get snatched up quickly. Sourcing our own deals is a waste of time and money. To then take out debt and have the tenant pay it is (BRRRR) is not worth the risk or time involved to self manage the property. Real estate is a scam
I had my HOA raised 15%, replace a fridge and 2 sofas within 1 year of owning an Airbnb. 😢
As an LTR investor I'm proud to say I cover all *discrete* body removal and baby oil needs for my tenants 😊
Thanks for the info. It seems really hard to make a short term rental work after looking at airdna and PITA in a few areas.
At least it can lay the mortgage, though? Do you consider long term appreciation to offset the monthly losses?
Good Video!!
Airbnb is death for me to much expensive to run you forget insurance and town fees
STR expenses higher than LTR? Yes. But STR income is 3X-5X LTR income. The income difference more than makes up for the expenses delta.
Brother, thank you!
my home purchsed for 98,000. put 15,000 to totally renovate. I rent mid term rental for 2,200. monthly . profit 21,500. yearly . and that how I do It!!!
Where are you buying a house for $98k that rents for $2200 a month 🤨
Lala land
Part 2 please
Part 2!!
Teach us!! 🩷
6 bedroom 6 bathroom 10 acre on top of hill 10 min to city thinking about Airbnb what can go wrong
Baby oil as operational expense im dead haha !!
Body bags?
Wow!!! Can you slow down????
Mid term rental is 29 days. ✅
Shallow analysis.
U can't write off 100% of mortage interst or prop tax or internet or utility bill if u have rented 50% of year.u can write off 50% of expenses only against income for tax..thsts cat h 1.
Catch 2 if u rent extensively 70 80 90 % u csn write ur expense % more but tax man will deem it as commercial property and adk hst on sale price that will wipe off most of appreciation if buyer buys for end use.
1031
part 2
Most people can ONLY profit from Airbnb if they no longer have mortgage 💸
^^^^^^ this. And that ship has sailed. Luckily I was on it!!!
Not true. If you own properties you bought subject to the existing mortgage with really favorable interest rates the PITI is likely low enough to reap a high yield doing Airbnb
@@TheCJAdams Please notice I did not say it is impossible....I said most people.
@@TheCJAdams Also: If you have a mortgage, you really DO NOT own these properties. Bank does ;-)
@@ondemandaquaworkoutsand “most people” fall into the category of they did not buy there home in the last 3 years so therefore your statement is wrong. Also no if you have a mortgage the bank does not own your home.
Reservations go down? You're out !