DONT BUY A HOME FOR AIRBNB IN 2024
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- Опубліковано 18 сер 2024
- The usual argument: Do I invest for cash flow or for equity when buying my first Airbnb property. The answer is neither. If you want to make a lot of money on Airbnb watch this tutorial for Airbnb hosts on the strategy for renting properties to build your Airbnb business. Some will call this rental arbitrage. No need to make it fancy. Just fast and simple facts.
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Hey guys hope this was helpful! Leave me a comment with your thoughts?
Here are some resources for you:
1. Learn how to start a six-figure Airbnb business here:
ss.milliondollarrenter.com/free-training
2. Free Facebook Group: facebook.com/groups/442411303158530/
How to find out if you are required to have license for air BNb and how to find out if condo association allows you to run air bnb business?
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That's my question..would someone let you rent out their property?
I remember in 2007 when I was working in real estate seeing people buy homes new from builders with the intention of selling before close of escrow to a new buyer for profit. The crash was so brutal and fast that I remember seeing a lot of these units foreclosed on with the builder plastic still on the carpet.
Most people find it difficult to handle a fall since they are used to bull markets, but if you know where to look and how to maneuver, you can make a size-able profit. Depending on how you intend to enter and exit, yes.
The enduring US stock market bull run evokes a mix of fear and excitement, presenting opportunities with insight, resulting in $780k gains in the past ten months, utilizing a portfolio advisor for a well-defined strategy.
How do I reach out to one? my assets have been struggling since 2022 and I’ve been holding on by the skin of my teeth.
Don't be hesitant to contact Sonya Lee Mitchell and follow her directions.
Just ran an online search on her name and came across her websiite; pretty well educated. thank you for sharing.
It has been one year since recording this "opinion" video. My airbnb account was pulling in around $30,000 a month in revenue. Now the portfolio is generating over $100,000 a month in revenue. Thanks to all of you and your "opinions" . This has been fun!
Airbnb Automated
I’ve been doing Airbnb for about 4 years now . I own my units .
Thanks for being open about your numbers . Would you kindly share how many units . And approx how much is take home from revenue ?
Thanks
Asking because I want to start renting to Airbnb as well .
Hey man, what should I do if I am an agent that works with a company that also has a vacation rental management division? I’m thinking they will likely want a cut out of all of this and want money to flow through them, or possibly prohibit me altogether from managing my own VR properties.
Any suggestions?
I would start your portfolio in a non competitive market. Or at worst in non competitive types of property. Like big homes if they do high rises.
I did a video on this recently. “How I made 70000 while on vacation”
Can we do a 15m consulting call brother?
Welcome to all the new viewers!
There have been many comments asking for practical advice on how to start your own AirBnb business. All the information you need is free here on this channel. Over 150 videos on the topic.
I advise you start here:
ua-cam.com/play/PLjdl1yk0inrVoJjoShWlIYKOr8GzjSy8t.html
Many have asked for copies of my contracts and sales scripts to talk to buildings, and though I love to give as much away publicly as I can, my contracts and certain scripts are proprietary because publishing them for my biggest competition to see would be insane. I only share some of this on consulting calls which you can book through here. bit.ly/talkwithsean
95% of all property owners would never allow subleasing, and most condos its not even allowed. So this is BS
That's right but i think its more like 98 OR 99 %, he even says hey the stove broke who cares it's the landlord's problem, maybe they trash the place to who cares not my problem .This is like those late night infomercials from the past, buy homes with no money ,now send me 2 or 3 hundred dollars and ill send u the all u need to get started .
lol!
This has nothing to do with subleasing.
You sign leases with your Air B&B guests?... it's not subleasing if there is no lease... at that point they are a guest in your home
R2 G2 l
We are missing some major factors here. Apologies for the length, but there's a lot to unpack here.
*TLDR: If you can buy, you keep significantly more money purchasing in year 1-3. If you lease, you keep more money in years 4-6. After that, it's hard to say. It depends on the markets per night rate increase over time, the subletting apartment's annual rent rate increase, and the rate of annual appreciation of the purchased property. I would prefer purchasing if we're doing this exercise for 10 years plus.*
If I vest $70k into renting apartments and furnishing them, that money is gone and never coming back. If I then get $9k a month in revenue, I make $108k in revenue that year. A net profit of $38k in year 1. That's a good return on investment in year 1. But it puts subletting playing catch up compared to purchasing . Not until year 4 does subletting catch up to net dollars kept compared to purchasing (comparative numbers in the next paragraph).
If I buy a property, and put 60k in equity down, I still own that 60k I vested. Although it's not liquid, it's still mine as long as the market grows at or above inflation. Which historically properties do in almost all places in the US. If my property makes an additional 5k a month including equity gains, I've made a 60k profit in the first year. My total investment is worth/has yielded 120k in the first year. If we add in the appreciation numbers, we're at $127,800.
Year 4 and on will be significantly more profitable for subletting. But, there will reach a tipping point where buying will be the better option again. Because rent historically increases over time in the subletting option (assuming you increase your per night stay rate to match), $9k monthly profit will be a pretty steady revenue stream. If I'm refinancing the purchased property, my mortgage is effectively going down, and rent is going up. This will increase the purchasers monthly profit drastically over time.
Lastly compounding interest on the 3% average appreciation isn't factored over time. If my property is worth $300k the day I buy it, and we set an appreciation rate average of 3% over a 10 year span, my house is roughly worth $415k in 10 years. You've gained over 100k in lump sum cash you can take out of the property if you buy, rent, and hold the property for the long term.
Wrapping up, it's important to point out that we're doing this exercise in a vacuum. We're not considering certain risk factors that should drive the decision whether to buy or sublet. What if the landlord terminates the lease? That will cost you money to start up a new lease, and my guess is that will happen frequently. How hard is it to find good apartments in good locations that allow subletting? Also, location and market conditions are very important. There are areas in this country that rents are out of whack compared to home prices. NYC for example would be very hard to buy in, and much easier to sublet out. But somewhere like Atlanta, Houston, and Chicago may be the opposite.
If you read all of this, thank you!
Loved this comment. There are pros and cons considering risk for both.
Buying has advantages for access. (Less people to stop you) and renting has advantage for location (more supply in high demand areas than buying)
Your level of consideration on this is wonderful. I hope you're a host.
Airbnb Automated thanks for taking the time to respond. I appreciate your outside the box approach. It’s an interesting play and a good one to take note of.
I’m not a host yet, but my wife and i are looking to get started in Charleston SC with the profits we make on selling our Massachusetts house in the next couple months. I’ve spent a lot of time reading, listening, and watching whatever i can get my hands on in the real estate investment space.
Thank you for the content sir!
Awesome conversation. I think another thing that you did not point out, though, is that it will take significantly less time to "manage" one property compared to ten or more. All things considered, that might be the most important factor. You can never discount psychological factors when you talk finance - they are as unpredictable as the market!
This is a great thread you've started. There are many factors to consider. This is one I think you should also think about: Start up cash.
If someone has saved up a pile 'o' cash and can buy a house to start "air-renting" it, I think it presents a fabulous opportunity to get the place you want in the exact location and allows you to have a solid business plan for reasons you've pointed out.
For those starting out, the lease-to-bnb provides a much less expensive starting point. Case in point, let's say I have $5,000 to my name. If I lock in a rental for 1 year at $2000/month (I'm in California) and I have to pay $4,000 to lock it in, I just have to bring in $64/day to cover that rent. When hotels are charging $150-$300/night, that should be obtainable. I should be able to buy a bed, bedding, a couple towels, and a plate set for 4 with the leftover $1K. I could even buy artwork and a table with chairs if I shop well. So with 5K to start, I could potentially start off with a really "cheap" airbnb that fills up quickly in the area, gives me the cash I need to further invest into the property to furnish it a little more every time someone stays. As for the cleaning fee, if I'm starting out, I'll charge the average for the fee and clean the house myself until I have earned enough to fully furnish the home, pay for cable, internet, and all other expected amenities. After a month or two, my sublease should be ready to go for above average rent. All this again, for 5K out of my own pocket and some sweat.
There are exceptions to most everything; however, if I was just graduating from high school, you better believe I'd find a place I could rent that was a 2 bd or larger where I could rent out the other rooms via AirBnB and have it pay my rent and lifestyle. I know someone with a family of 8 doing this right now (they've been doing this for 3 years) and the AirBnB pays for all their rent and a little more, while they're living in the 3,600 sq ft home. Out of the 6 bedroom home with Casita, they live in the 5 bedrooms and rent out one room in the house and the casita every night. They pull in no less than $100/night and it has been vacant 5 days/year on average.
It's a good way to start. When you can move on to owning, it's a great way to go. Things to be concerned about: in some cities, they're banning short term rentals (aka airbnb). If you buy a house and then it is outlawed, you have to go through with selling the house or turning it into a traditional rental. If your subleasing, you just stop your lease and move somewhere else. Anyway...great discussion!
@@AirbnbAutomated also wear do u buy your suits?
How do you get homeowners to agree to rent you a home under these terms? That should be the next video please and thank you blessings.
the more I watch you Sean, the more confident I am. Thank you.
How do you go about finding properties to lease that are willing to let you do short term rentals and do you lease them in your name or in the name of your LLC? What do you need to provide to qualify for the rental? Is it the same requirements as if you were going to rent the property for yourself?
This is actually a topic I've been considering covering. This is a great way to start an AirBnB business! The costs are much lower as you suggest, and as long as your upfront and honest with the person lending the house to you, you're ok. It's the people who try to sneak an AirBnB business into a rental property who get hosed in court. Good on you for sharing what you know. I will probably cover this in a future video, too. Good luck and congrats on your business!
It used to be. Not anymore! I wouldn't do rental arbitrage in 2023 to save my life. Because doing arbitrage will kill you.
im still at it.
I actually stayed in an Airbnb set up this way in Chicago for Lollapalooza. the hosts photo was a Chinese woman. i rented a bed within a room in their three bedroom house. prices downtown were so expensive. so when i get there i see this white lady answer the door and guide me to my room and bed that i shared with three other travelers. she set up a bunk bed and one bed within a room. it didnt click at the time but seeing this video it all makes sense because the morning i woke up i saw the chinese lady from the airbnb photo. she came to check on the property it looked like they were working together and her airbnb account had multiple properties all over the city. i didnt think much of it cause i was barely there. it was just a place to sleep and i was happy to have found something affordable last minute. but now it makes sense. chinese lady probably worked a deal with the home owner to advertise a room in her house. sinse most cities offer exceptions to subletting if the home owner lives there as well(which she did). she probably worked a deal with her and multiple property owners to advertise their property on her airbnb account where they split the profits. this sounds very similar to what you're talking about
Thank you so much for these videos ... I am learning what to do to be profitable and avoid the mistakes you've already made.
Yes, some people do call this "Rental Arbitrage." Those same people are called Defendants.
Right, this strategy is essentially "how long can we get away with subletting before we get evicted"
😂🤣😂
😂😂😂😂😂
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I had a guest dispute once. They seemingly had a party. Messed up the carpets. Airbnb didn't think so. They didn't allow me to use the deposit that I required. How should I have dealt with that? The deposit was inaccessible. Then I found out that my heating bill was $700. I thought they had the windows open the entire time with the heat cranked up. I'm not sure how I should have dealt with that. Also, how to deal with theft and/or damage in general. Airbnb wasn't going to give me market price for the new items that I had just bought that were ruined.
The Gabriel Family cameras 📸 inside the place.
@@Shanta_barron_ in the bedroom too?
Dave Cirlclux No just on the outside and living room to monitor who comes in and out and to show who did damage if there’s damage
@@Shanta_barron_ it is illegal 😂
GONUTZ well damn my air bnb in California is savage. He gave no F
I'm all for capitalism but as some one who used to live in a dense metro area, you're the reason why rent is unlivable even for working class professionals.
Currently in Houston the cost of rent in my buildings has gone down in the last two years. It does not appear that the 20 leases I have in Houston have affected the equilibrium. Though, If hosts were targeting single family homes for the majority of their properties I feel like you could be correct in your assessment.
Airbnb Automated I should rephrase my comment. This business activity (not you personally) has directly impacted the available of inventory of family homes in DC. Even the gentrifiers are getting gentrified.
Bro. Tolliver I would like to see the data on that. I would disagree that it’s as serious as you make it sound, but you’d need only respond “it’s the grain of rice that tips the scale” and i would have to concede that point.
There’s likely multiple market forces at play, thus certain markets are more vulnerable to the slightest change in supply and demand.
In some communities, this is a serious problem. Not that the house sharing business is the cause, it actually is a symptom. High rent cities are now cracking down on how Landlords can use and rent out their property due to ever-rising rents and housing costs. Due to new regulations which are expanding, this kind of business model will not work. NYC, San Fran, Boston pretty much put a lid on it. Even though Airbnb and Homeaway and others are fighting these regs, they are also being forced to change some of their operating models just as Uber was forced to do in some larger markets. What works in Houston may not and probably does not work in Boston or San Francisco. Just sayin
@@markgaterbondifinancialguy3885, Of course, AirBnB is fighting some regulation because it will take money out of their pocket. Like NYC where they limit property owners from doing Airbnb or HomeAway or private temp rentals. Sure Airbnb wants sensible regulation but to limit the liberties and abilities of property owners and renters is not gonna fly with them. Think Uber and Lyft in New York State where it was illegal outside of NYC until recently. Uber fought the state of MA from preventing regular folks jumping onto the platform and settled for fingerprinting and enhanced background checks. Even BnB owners have felt the pinch of new regs in some areas that Airbnb helped them fight. Renting property to Airbnb is grand and can make money, no doubt but if you think you are safe because Airbnb is on the case think again. Rent to Rent model is in trouble in a number of markets and Airbnb is not winning the fight.
That was exactly how I started my Airbnb business . I started from one and keeping 20 very profiting properties now
. I brought my own in 2018.
What about the new laws for Airbnb now, how do you get around that?!
What happens when the landlord finds out you're renting the dwelling on Air BNB? If you get evicted that can show up on your credit report and you won't be able to get any more properties.
theyve actually asked to partner
You ask first for permission
To all of you nay Sayers, you can fight it all u want, but u can't stop an idea who's time has come! These crooked ass corporations have had a strangle hold on these major markets for long enough and it's about time for the people to rise up and take our power back. While the majority of you are sitting around judging this man for having the audacity to think outside of the box, he's laughing all the way to the bank. I've been doing airbnb for 2months and I've grossed over 5k each month!
1. Do you only rent Apartments? what do you think about rental houses say with a pool etc?
2. Do you focus on Vacation rentals or Corporate Housing?
Actually a pretty smart idea (sub leading properties to Airbnb)
-no property tax
-no maintenance (property manager)
-less money down
There's still going to be maintenance to some degree. The larger systems are taken care of by the landlord, but if your AirBnB tenants damage the property, you have to foot the bill....then again, so will your tenants ;) AirBnB really changed things for savvy investors.
how do you even get started? and how do you pay for multiple a month? Im trying to understand the logistics lol ( is there like a specific program..
I completely agree with you here, Sean. That 20% down plus the landlord responsibility really makes home ownership cost prohibitive with Short-term rentals. Thanks for this video.
🌹Completely agree. Renting your properties for immediate cashflow via Airbnb is the way to go, if that's your goal. If you just want to pay off properties to have long-term, buying them is the way to go. Both have an upside. Good Video!
Hey would you suggest renting a home or an apartment?
So What’s the legal way you’re picking up these properties? Which video is that covered in? I keep seeing you saying you’re going to talk about it yet I don’t see it in any of the videos 🤔
Horse and pony show… This is bait for the course he’s going to set up for you to buy. Every lease agreement that you signed has a no sublease as One of the requirements by the homeowner… Having took a shot at you I still think this is a very helpful UA-cam channel with a lot of good tips
Yea the course will definitely cost money. the concept is great however i don't see how apartment buildings will let you use them for airbnb. But hey I could be wrong.
Freddie Bowers ... Technically AirBnB is not a sublet... What it works out to be is, the lessee has a "guest" stay with them, which cannot be prohibited in a lease agreement... So basically if you lease a property, you are allowed to have "guests".
You are playing with fire. If the landlords find out, they will ice you. As smart as you think you are, there will be a day when you mess with the wrong landlord.
Eric P all of our landlords or stakeholders are aware. And some ask us to pick up more property
That's fine and all, but a lot of people are doing this same trick covertly. And the video you promise teaching people how to maneuver around management companies...
Eric P posted one on it two days ago. It’s suggested at the end of this video
Landlords are snakes themselves
@@idk-gq3lh yes i am. A communist
Not legal to airbnb a house you don't own. Plus the owners home insurance is void unless they list it as a airbnb share house...
Matt Green he's going to stay far away from your comment...no response on this one!
@@dfgvegas u r rite
My bad I missed it! It’s not illegal to post any listing on Airbnb and less the city/county/state says so.
If you are leasing from landlord it is not prohibited unless outlined in the lease. Even then it is not illegal it’s just a civil matter. Though I recommend you follow your leases the point there is that a lease violation is not criminal activity.
There are special insurances for vacation rentals, Plus Airbnb has their host guarantee which covers damages to your property.
"it is just a civil matter" means tell your guests to lie and say they are your cousins if you get caught. This dishonesty and greediness is ruining the housing market in LA. I am surrounded by Airbnb's and it has been the worst living situation I have ever been in.
Nope, he responded and explained it very well.
I love your first 2 videos that I have watched. I am in escrow with a partner to buy our first property, we both have lot's of cash and good credit and still such a hassle to get a 85% loan. I am going to watch more of your videos and try it your way on the next one
Completely LOVE! Thanks!! Subscribed
He's probably not wearing any pants..
ua-cam.com/video/a4oRWVw_v6k/v-deo.html
Thanks for the tip. I had a friend he was doing subleasing, but not renting it on Airbnb.
Which state is your business/company incorporated? Legal business name? LLC or Corporation?
"It's a lovely car, I'll sell you it for a very good price, only one previous careful owner"
How are you finding these properties
Wow a lot of haters .If the land lords getting payed . His property is not getting damaged I dont see the problem. The airbnb host is doing the work and dealing with guests. Both are making money, and landlord is having someone else pay off his house plus making passive income .Win Win.
Raymond Stone it’s not hating. Obviously if he has an agreement with the Landlord it’s fine, but if not it is placeing further risk on the homeowner, not to mention it is generally not legal per most lease agreements
Actually It voids the insurance...so if the place gets burned down by who knows who then they're looking at a lawsuit rather than just having the insurance company paying for it...Also...If landlord wanted to airbnb.. they would have done it themselves...Sole reason they rent out rather than airbnb is because they don't want the wear and tear....People screen tenant for a reason ...They don't even know these people that airbnb..Some don't want that uncertainty..Or they would just sacrifice the property for 1.5x time the monthly income difference....
Can u simply rent property that you don’t live in and make money?
Legally etc
Hey, I'm planning on starting an airbnb business, but I need guidance, will be glad to hear from you!!!
Hey Shaun can you please make a video on renting property and listing them on airbnb vs a buisness of managing other owners str on airbnb? with pros and cons. Thanks your videos are great!
$15 shirt, $8 tie, and 5 minutes you'll never get back. He isn't as smart as you're led to believe and is advocating for something that breaks the lease of almost any place you rent. Save your time and frustration and watch something else
$280 tie. (zegna) if this is a Canali shirt then its up there too. At the time i recorded this video my account on airbnb was generating around 30k in revenue. Now its over $100,000 . (per month)
One 'n Done dare you to check last videos and understand how wrong you were.
Literally thought of it, then UA-camd it! Brilliant!
1. What are the criteria you look for when searching for your rental property?
2. Once the rental property has been located what is your approach to convince the owner to rent to you?
a. Do you sign an agreement informing the owner that you will be subletting the property?
b. Do you need to have rental insurance?
And by the way, I love the videos you make. It is informative and helps be decide to give this a try. Still researching prior to starting this. Thank you for all your help.
ua-cam.com/video/a4oRWVw_v6k/v-deo.html
You changed my view about buying a home for airbnb. Thank you. What the city you conduct your business in? Where are these numbers coming from?
Three cities so far! Houston, Dallas, Fort Worth
Hi following up few years from when you posted this, did it run well with getting landlords to approve this?
greetings how would the part of the cleanings of each house be done when there were so many rented?
Contract the work
Call cleaners…. Or do it urself!!! (;
I'm a Military Veteran. You inspire me. Please let me know how I can partner with you and make some cash money. Maybe you can get two interested people to team up half and half financially on this rent business.
If he's making as much money as he says he is, why would he want to share it? Why is he even making videos about it?.... To get people to pay him $5 a minute to talk about it is why....
Well put together video, clear, concise.Thanks for the content.
Don't ever let other comment's negativity get under your skin.
keep up the good work.
Hello Sean, do you have letter template that you send to apartment owners to get the to agree to allow you to rent their apartments?
What if you buy a multi unit property in high appreciation rate area? Then what if you buy it with a 203k loan and say you live in one of the units and wrap the cost of renovation in the loan that is 3.5%? Then what if you can get the seller to pay for your closing costs? At that rate you are coming to the table with very little money down to get a property that will appreciate at an incredible rate building your net worth per year and you can have massive cash flow on a newly renovated unit. With that equity you can lend against it and buy many properties on equity your guests are building for you. Seems like a smart idea to me. :D
Sean Ray are you quoting our last conversation!? Lol. Hey everyone, meet my real estate agent
I was thinking the same thing...
where is such a property that cheap with multi rentals unless in a very bad area? everything went sky high from everyone moving to Texas.......
Why don’t you find a unicorn while you’re at it?
Do unicorn socks count?
Awesome info, worst tie EVER lol
Aweeee, lol.
The concept makes sense. The problem is getting the owner to agree and allow you to arbitrage their property. Very difficult to do!!
Ms. Marie says, Yes!! Thank you for posting from a very wise, handsome, and well-dressed Entrepreneur. I do appreciate you for getting to the point, concisely.
Every rental contract I've ever seen as a clause in it that prevents subleasing, at least without the approval of the owner.
How do you deal how do you deal with that?
You can airbnb without it being “subleasing” stay tuned for more on that.
Airbnb Automated Thank you. Please keep me posted. I am interested in knowing how to do this.
I thought about that too. If I do that I would be sure to add a AB&B/equivalent clause for any new tenant renting from Me. This is a great thing for Me to do in the future. I will markup the rent most definitely.
My current tenants are on lease, except the apts. I rent the rooms. Both My properties are near Me. I can see who's coming in/out, *if I want* to be nosey from My window, I'm not really a nosey lady, I will if I have to. Glad I watched.
ua-cam.com/video/a4oRWVw_v6k/v-deo.html
Sublease, subletting, sub renting, sub anything all this play on words is b*******Airbnb your own property quit f****** over actual homeowners with technicalities... Oh and don't tell me, the solution is coming out on video soon!
Amazing information! I can't believe I learned so much in such a short video.
Francisco Garcia What u learned in this short vid is a drop in the Pacific Ocean. To make it work you have to be in the right State, right County, right City, have a thousand right connections and resources to make it a reality. Without trying to screw property owners and management, as he said “they can’t do nothing about it”.
hope you've followed all of my teachings these last four years. because all of that other stuff is here on the channel
Hi, can you give the the acquisition strategy? Is it Lease options? Or just rentals? I want to get into this market this yr ASAP.
Thanks
Justin
How do you get permission from your landlords to rent the flats out as Airbnb?
Have you posted the video or webinar yet on how to legally host on a lease? Thanks.
ua-cam.com/video/a4oRWVw_v6k/v-deo.html
What about all the leases which specifically forbid subletting? Which has been every place I’ve ever rented
Which state are you in? My short answer is if it’s air tight in the lease then move on.
ua-cam.com/video/a4oRWVw_v6k/v-deo.html
Airbnb Automated most places dont allow u to rent Air bnb
I don’t know if I would agree with the word “most”
But how many places do you need to let you? That’s really what matters
Airbnb Automated if you go mostly anywhere in miami they fine u for renting airbnb
I am very interested in starting my own business using airbnb any recommendations on where to start?
If you were to own the apartment complex, wouldn’t that save you all the headache of finding landlords that will let you rent? On top of that you own equality on the property? Great videos!
Hi, how do you rent the units legally? As most places do not allow Airbnb??
Jazmin T. We are working on creating a webinar for that part of the business model.
In the meantime we do consultations if you'd like to discuss a one-on-one
clarity.fm/venom/expertise/growing-an-airbnb-business
Hi, Yes I am interested in a one on one consultation. How will I go by getting a one on one?
Jazmin T. You can request a call through clarity.fm/venom
ua-cam.com/video/a4oRWVw_v6k/v-deo.html
Jazmin T. How much did he end up charging you?
What is the catch?
This isn't legal in Vancouver either. It takes away from the rental market. Its outlawed in condos & apts. It's viewed as running a hotel without a license.
Some cities do require a license you are correct. Even here in the states
What about liability insurance ? Can you get insurance to cover renters since you don't own the property?
Hey Sean, Thank you for your helpful and informative videos. I am currently in Chiang Mai Thailand and are looking for properties to rent out on Airbnb. However, the real big challenge is to find an apartment with a landlord that allows to sublease it. I was looking through your videos and couldn't find a video that covers that topic specifically. Do you have a suggestion for this? Thanks in advance! Best, Florian
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You can negotiate with landlord different terms. Need make sure you can do this 12 months as London rules can not and restricted only 3 months. Thailand maybe ok. I am a landlord and to accept someone doing this I would want double the deposit (12 weeks deposit rent in case of damage and you sign extra protection cover) plus would charge more of a premium rent say 30% extra rent a month. So to interest a landlord you need to offer those
Haha g-d bless u.. It's not the USA.. Don't worry about the landlords blessing... The Chinese are doing it in neimanheiman and have companies here renting out many of them. But the greedy thais are making it more difficult for farang to do it and it is illegal... Definition of illegal:Not illegal for thais and Chinese who have connections, But illegal and will be enforced against farang when jealous thais call immigration for a reward. It can also get u deported unless u have the right visa.
OK, what landlord allows you to sublet on Air ? And how can you guarantee your Air rental at what you seem to calculating a very high occupancy. It ain't as simple as it looks.
Mike Kleinsteuber hey mike! Videos on leases coming soon. For high profit and high occupancy tips, check out our advanced pricing strategy video.
where is the the video is it out yet??
Simple answer is no landlord would willingly allow it. If you go this path, you better be ready to fight.
Video posted two days ago. The end of this video has it as a suggestion.
And plenty do. I have 26 properties all with multiple different landlords/property management firms.
@@ericp1139 Hes right..There are many who will say no BUT also some who will say yes. You have to ask to know, don't just assume everyone will be against something even if it seems very likely.
Do you have a podcast that I can listen to the audio of your videos while I'm driving so I don't have to use up phone data? You have some phenomenal content, really appreciate it!!!
BeachGal wonderful idea
would love to have podcast to listen to as well!
Recently bought a duplex in Bryan TX and I am thinking of making one side a short term rental. I have zero experience in doing this so I thought I would ask for advice from those that have some experience.
The unit is totally rehabbed with new floors, paint, fixtures, lights, ceiling fans, granite countertops, new windows, bathtub and tile in shower. It is a 2 bedroom 1 bath and I have yet to furnish the place. It does have a washer dryer and all new kitchen appliances.
I won't manage it myself looking at a couple of companies that take care of all management, they charge between 10-20% of gross revenue.
Questions:
Does anyone have any recommendations for property management for this short term rental?
How should I configure bedrooms.....King, Queen, Full or Twin beds.
On average what should I anticipate for occupancy rates?
What are good daily rates for both event type dates....ie SEC Football Weekends, Parents Day, Graduation dates etc and just your run of the mill days?
I plan on using this property sparingly myself.
I am sure I am leaving out some obvious questions so don't hesitate to add to this discussion.
sounds like this would need to be rented out %100 of the time to make ur 9k a month
abraham lemberg that is a total of 10 apartments profiting $900 a month each. A quite modest average
i hope so. i guess it would depend if that location was in high demand for air bnb rentals all year round and if it was legal in that state as well as the maximum rental guidelines for the city you have the rentals in. im doing my research to try and buy an investment property to rent out. seems like there's some controversy.
your video has some great points!
abraham lemberg it's my property purchase will be profitable either way. What classifies a property as a smart long term is actually quite different then a smart short term acquisition. We will try to elaborate in the near future in a video
How to end up in the courtroom 101
Lots of Canadian homeowners are preventing tenants (renters) from putting the homes on Airbnb. Any suggestions for Canadians?
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Thank you for insightful info! My question is if you rent it out and originally your name is on the lease, would the landlord count that as a red flag or they dont care because they’re still getting the rent paid?
Rethinking this, that's actually not a bad idea. Good video, deserves a sub 🖒
My math teacher making me watch this 😰 for homework
Sean thank you for the insight you gave during our local REIA meeting last thursday night. Is there a specific order I need to view your videos? Thanks.
They’re all in chronological order!
How do you get do many rental properties in your name? When they do background checks don’t they see the other Apts you have?
2019 this lad thinks home owners are dumb!!
How do you find properties that will allow subleasing?
Colette Scharf working on the video series now!
Thank YOU Mr!
That's what I'm waiting for too! It's been so hard finding good information on this that I've started composing my own "Landlord Letter" but would rather hear how you found success. I don't want to re-invent the wheel!
Jeff Feltes we taking one on one consultations before we release a webinar on this. Here's the link to book.
clarity.fm/venom/expertise/growing-an-airbnb-business
valid only the in US!
I have been subscribed to your channel for a few months.. many options but I'm drawn to your intelligence and maybe biased because you have so much happening in my hometown that I desire to tap into. I live in New Hampshire and started my Airbnb the last few days of March 2017, wow I couldn't believe how quickly it took off. Id love share more and if I'm able to get to Houston or anywhere you have a listing I will most definitely try to book at one of your listings, and would be great to have your personal advice on some things I just need to stay motivated on to take the next steps. Thanks for doing what you do here, I'm truly inspired by you.
Angela Mireles I'm glad that the videos have helped! If you're planning a trip south, be our guest!
Good luck with that! In South Florida all lease agreements are structured to stop a subletting. Also, condo associations mostly prohibit subletting and all residents have to background checked.
James Dixon This is not subletting but some of our buildings require background checks for each guest also
If I was renting a house to someone and they turned around and advertised it on airbnb and made good money doing it guess what I would do at the end of there lease. That system probably does work and thanks for sharing but I think in a few years guys renting single family homes are going to figure it out and do it themselves
jason johnson there's a good chance a single family home owner would do that. So in the case that you come to an agreement with a SFA you'd write a 2-way agreement
jason johnson this would ensure the landlord a slight increase in rent and that landlord agrees to not terminate the rental contract and start Airbnb on his own I've seen these contracts happen before.
Actually no. Most owners have jobs and other things doing so they don't have time to do the airbnb thing in the short term renting. All they care about is getting money for their property
I love your description of best way to control a AirBnB property without owning. There is a way to further reduce your capital invested! Find an investor and share profits. Further, the investor can use retirement funds to loan to you to earn a 100% tax free return( using Roth IRA or Solo 401k Roth portion).
Using your example, in return for you managing a property, the investor signs an agreement with you whereby he loans you $7,000 for furniture and start up costs. The business loan is made with funds of his Roth retirement funds as an allowable alternative investment. Assume you net $900 per month or $10,800 per year. Because furniture depreciates and the investor drives a " hard" bargain, you pay him $400/mo.,$4,800 per year. After paying your investor your net is $6,000 per property. An infinite return using OPM, $0 capital invested! Can this be done? Yes, how can I send you money!!!
ToddBizCoach good numbers Todd! With this strategy I doubt you'd need an investor except for possibly your first property. Because the investors money serves such a low impact on rate of growth, you can get even more favorable terms on the loan. Especially when there's a portfolio already proving ROI
This is such a great video! I had theorized that this would be a good idea several years ago but I couldn't figure out to put it into numbers and what potential pitfalls to take into account but yeah, this was great content!
The pitfalls in the uk are too many to mention, subletting is illegal here also a house of multiple occupancy needs special fire safety measures and there’s a matter of the Council Tax which makes things very messy I guess there was a boom in the Airbnb few years ago in the uk and many Asian people especially made lots of money but with the new regulations only the brave and reckless are prepared to embark upon that path .
10% down if you purchase that first one as a second home. You also get the tax write offs for interest paid, depreciation write offs and every mortgage payment made pays down the balance. Yes, it’s slower gains up front but long term you have potentially millions in assets...
If you buy it to live in it, less down payment. But if you airbnb it, that’s mortgage fraud. So then you’re limited to around one house a year. (Starting with your second home) meaning you need to wait a year to use low down payment options.
Then also food for thought. The LLC holding the leases and making a profit is also an asset. The rate of growth of the company renting is so incredibly fast that the value of the LLC alone will outpace a competing business that also benefits from the equity gain of buying property.
I see no problem with this as long as landlord is okay and the properties are in good state. Its a win win situation and a very smart one indeed.
What if the people staying trash the place?
Background noise is really annoying AND this guy gives NO information as to how he obtains properties to rent and apparently re-rents.
Love this video! I have a property that does really well when I am just renting out the rooms on Airbnb but when I rent it as a whole house I always have problems. The problem, is the area. How do I advertise it so that families know the area is not that nice?
Heaven Sent your strategy can depend on your area and your ideal traveler. If you're in a place with a high volume of individuals traveling as opposed to groups this may be your optimal strategy. If you'd like to discuss it in depth please send us an email
How do you get away with subleasing?
By not subleasing :) watch our newest video
I’m a property manager, Airbnb host and and real estate investor and pretty good with DIY stuff.
There are lots of pros and cons to doing real water in An fashion. Iwould never say one way is better than another.
You’re comparing apples to oranges, the only they have in common is that they’re both fruit.
Airbnb a Home you own can be more lucrative than subletting an apartment.
The rent you paid on the sublet is gone forever vs home it’s like a little piggy bank, minus interest.
You can also finance a home with a converted garage or some kind of apartment complex (no more than 4 units) and live in one Airbnb the others. You get 3 apartments with 3.5% NOT 20
Lease to RE-lease? This is complete BS, you are not the owner..If I lease you, I'll check your credit H and you are the only one who will be able to live there by the contract (if qualify).. Good bye..
Skybiz there’s no re-lease or sublease. He’s charging guests to stay a few days or less than a month
Are you familiar with airbnb? Lmao
I made 300k my first year. I had up to 28 rooms. Home owners saw how lucrative it was and decided to cut out the middle man. At first I thought why own them when you can just make the profit and keep it pushin. But if you don't own you always at risk of the owners wanting to do it themselves and keep all the profit. Also had I been paying mortgages versus Market rent, It would have cut our operating expenses in half leaving way more for profit. I have an Airbnb account with
2,800 reviews for sale. If you own properties this could be a great deal for you. A house with 6 rooms in it can make 15,000 plus a. One of my properties brought in $123,000 for the entire year month. With these numbers you can pay off your house within 4-5 years and then profit all of the money you make from the property after that.
so how do you figure in your taxes on all that money you make because I'm sure they must be crazy. And finding a CPA that can do that accounting is not going be easy.
Jay what's your email?
Hi Jay - please send me the link to your air bnb account. Cheers
Jay what town or region are you in where you can make 300k?
Have you made the video explaining how you do this yet? I couldn’t seem to find it. I’ve gotten more into your videos in the past few weeks, and I would definitely like to do this!
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What your talking about depends on where you live in america. I live in texas we are not alowed to sublit so we have to buy property.
We can even lease option but not allowed to sublit
jmakaylaad he is from Houston and has property in Houston lol
Thanks
jmakaylaad no problem! I’m sure in Texas you can sublet as long as the landlord is well aware and it says you are allowed to in your contract!
Can some towns legally stop your from doing air B&B ? If so how can they, seems un-American
Indeed. Sadly though yes they can. Miami just had some heavy handed legislation come down on them.
The Mayor in my town said the State said they cannot be regulated if its your own home ~
I read that NYC bans Air-Bnb with steep fines if caught (although some people still do it)
Politics eventually come into play and can impact you tremendously
This isn’t false. Some states are staunchly against it. Some though are friendly. Texas for example is working on passing US Bill 451
How is it un-American? Imagine if you leased to a tenant that you vetted thoroughly, only to have him Airbnb to random strangers into your home behind your back? If you airbnb a home you own, then that's another story.
wow, just stumbled upon your channel.. you're brilliant!! Can you please teach me the legal way to pick up properties without owning a single one?
There’s another video on this channel to watch. Published just a couple weeks ago.
Great content and super helpful! Where can I find your video tutorial covering your legal process to pick up your leases?
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Did you ever make a video on how you secure your leases, and work around "sub-letting"?? Thanks!
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This loop hole is closing fast as most owners are now adding NO SUBLETTING / AIRBNB to their leases! Major liability to the owners plus their on the hook for taxes etc. etc.
Bitz MAX If you do this the right way it is not subletting. We just negotiated a deal with investors on 25 properties
YOU are either the RENTER or the OWNER period. I live in a Luxury market in Vancouver, Canada where AirBNB is being stomped out by the owners as many are now finding out what their tenants were are doing to their million dollar condos in Vancouver. A proper legal contract would stop this in it tracks. In Canada we are now having to write NO smoke, cultivate, harvest, processing or distribution for the tenancy agreement for Marijuana that is legal in Canada October 2018. Most owners are now checking craigslist and strata companies are looking as well for units that violate the strata property act.
God bless America
well work it... well you can... but most luxury markets ( owners and strata's ) are aware of this now where rental rates are the highest. I'm not saying it doesn't work but the alarm bells have been sounded. take care
This is amazing
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This is great. I’ve travelled the world for a few years and stayed in Air bnb’s all around. Have been searching for ways to manage several properties. Is this something that might be possible if there’s a criminal record from over 20 years ago?
some municipalities here in NY forbid using your property as an Air B&B unless you have applied for a permit with the town and only the OWNER of the property can apply for the permit, so that might work in Texas but here in NY would be impossible without informing the owner and cutting him in on the action.
Shady business practice.
Vin Chung how?
Crazy to see the difference under the years.
Wild isn’t it?
Hello, I really enjoyed this video. I would like to know if a non - resident can get into airbnb business/investment.
All good info but in Miami Beach legal transient buildings are limited and hosts can pay upwards of $5k rent for a beachfront studio in hopes of making $9k per month from travelers.
That’s just dade county. And the laws in Miami are cumbersome. I will be launching south Florida properties by 2019 and will do a “dear diary” series of videos on it