My Container Home Made This Much in 1 Month on Airbnb
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- Опубліковано 12 чер 2024
- This video I explain exactly how much my shipping container home "The Pacific Bin" made on Airbnb in it's first month. I break down all my income sources and expenses and how running a short term rental in 2023 might not be as profitable as you'd think.
The Pacific Bin | Airbnb: www.airbnb.com/rooms/77614081...
The Pacific Bin | Book Direct (Save 5%): www.thepacificbin.com/
Construction Plans: www.thepacificbin.com/plans
Tesla Referral Code: ts.la/devon19362
Construction Materials: www.amazon.com/shop/thepacifi...
Instagram: / thepacificbin
TikTok: / thepacificbin
Twitter: / devon_loerop
Business Inquiries and Consulting: info@thepacificbin.com
If you are on 100% occupancy raise prices!! Especially on the weekends and holidays!!
great breakdown!! At least most of those expenses are for the full year, considering that it doesn't seem bad!
Thanks! Yeah, April is looking so much better already. Now I just gotta do what you're doing and get solar to get rid of that energy bill.
More commonly referred to as clickbait.
100% all of this would of been “not worth it” if you didn’t do all the social media. If anyone else thinks this is a good idea, think again. If you did this without social it would be a nightmare
Plenty of equity is still gained from this type of project without the social media side of it and if you enjoy building, it can still be plenty worth it. I think it just comes down to what types of passions people have in their lives and what they want to pursue
Doing ANYTHING without socials in 2023 is a bozo move.
I mean... because he put in sweat equity, even without ever renting it, he was already up $200k. I disagree.
@@justinrink6755 why is the main UA-cam liking this? It isn’t a jabbed and him disagreeing is a naive/stubborn move. If he disagrees with thinking this isn’t a “bad financial move” without blasting you’re project on social, extreme stubbornness. He has well over 700k-800k+ into this, and that’s him doing majority of the labor work which saved hundreds of thousands. But he believes he could sell for “1mill+” hard to dispute or argue but I would think around the $550k-750k max range. Especially with property going down. If it wasn’t for the social exposer, yes this would be a loss if you’re outcome is only financial gains which is the point. And no other reasonings/Munda things like “life lessons gain from this counts for more” only taking about financial gains/lose. Kind of shock he agrees he would of been a good decision/financial move even without social exposure. Denial isn’t just a river lol but no hate just bringing up a valid point. Extremely jealous/amazed about ur tenacity,motivation and all above. Just stating these compliments to make my point/topic only about “if this would work financially without big social media exposure”
I mean u nedd social media to help any business
Dude massive props on all this. I love the utter honesty about all of this. My wife and I have a few real estate investments so I can relate to your feelings on questioning whether it's worth it. And your property taxes are only 3k for the whole year?? that's phenomenal. Happy to see you doing well brother
Justin! What up dude, it's been a bit. You mainly doing long term rentals or you starting to dabble in the STR game? As for the property taxes... that's one benefit to building new construction. The county assumes it takes 16 months so if you can build it quicker you only have to pay taxes on the land as if it's vacant undeveloped land. So next year it's going to go up by a chunk 😅
@@devonloerop we've got two condos we plan on renting out long term so still learning a ton about how this all works. Might look into STR eventually but for now, we've got our hands plenty full lol. Seems like STR and long term are pretty similar in terms of responsibility and equity building
Such a good video breaking it all down. Continue doing content like this cuz it'll definitely help turn this whole project into a huge profit long-term! Keep sharing your knowledge and breaking these numbers down brother! Super duper dope content.
Love and appreciate the transparency throughout your journey. Keep it going…
Love it bro! This has been so exciting to watch! Hope to visit someday!😊
Great job man! Thanks for being transparent with all the numbers!
Of course, so many people hide their numbers and are either afraid to say they lost money or are weird about showing how much they actually make.
Great series of videos. Love them!
I subscribed right away! Thanks for keeping it real - that's invaluable
You bet! Few people are actually dropping their real numbers so I'm trying to provide the value that I looked for when I was getting into this STR container home game!
"Was it worth it?".... NO QUESTION! You learned SO much that you will carry with you always! It was absolutely worth it!. AND... I hope you make money on the project so its worth it.
Loving the content, presentation skills are so on point. Hopefully I can stay there some day. Greetings from The Netherlands
Big congrats!!!!!!!!!!!!!
Damn bro. Love the honesty!
Inspiring mate. Cool house. Have really enjoyed watching
Love the new editing style Devon!
I have no reason to be watching videos in this niche at all but just really enjoy your energy and creativity.
If I had any feedback at all, the title of this video could probably stir more curiosity in your audience if worded differently! But just my random 2 cents 😂
Can’t wait for the social media video! That one is sure to be a banger 🔥
Haha thanks man! Really appreciate you. Yeah the social media video is gonna be really cool 0-1,000,000 followers in under a year. Gonna be dropping the secret sauce on that one!
Clear and articulate.
Winter will be even worse, don’t make any more risks yet, looks like your doing good though, especially if you have family as a safety net, good work man.
Happy for you bro, hope everything goes good!!
Thanks!!
I think you overextended yourself on this project but it takes balls to go all the way first go around but you pulled it off and got it running. That is impressive in it's own right.😌
Care to explain a bit? This asset will most likely value around 900-1mill which means I've created $150-250k in equity from thin air and it's cash flowing over $100k per year
@@devonloerop You know better than me that's for sure.. I just would have started on a smaller project is all I meant to say. I don't know the numbers.
He literally walks you through all the numbers and his 3 biggest expenses were annual payments, if it keeps up occumpancy rates like this for a while he could retire on this one build. Fair play
@@devonloerop I couldn't think of a single person other then yourself who would purchase this for 1 mil
@@devonloerop i bought a property at the wineries and partly flipped it to accommodate atleast 10ppl. focused on the home experience for customers, amenities and family entertainment, luxury without spending on expensive brands going for $1k/night on peak days. i feel like you exerted too much effort building the home but understated your bnb rates. i gave myself 3mos to run the flip and launched in time for the peak season. the equity you built is assumed IF you sell it right now. in reality, your real financial cashflow is running red. i love the effort but as a fellow bnb person, i suggest focus on why you want your customers spending the night at your build, what to do, entertain, and give them one heck of an unforgettable experience, and ALWAYS be 2 steps ahead of what people need. and then UP your rates. boost that bottom line man. go get it!
Yeah dude, great following the build. Looking forward to heading up to Washington at some point for a stay
Congrats on your project and bringing this information !!!! I live in Vancouver so numbers are similar to yours, How long did it take you to build ?
Talking about all this shit overwhelms me in a good way, you're such an adult bro! Love you! New Sub
beast beast beast can't wait to hear about the next project
It's gonna be wild😏
Awesome breakdown! What would you estimate labor costs to be if you didn't get your hands dirty?
What loan program did you utilize on your build? Did you have an appraisal complete before loan approval?
Great video! Definitely leverage Guesty automated message templates if you’re not already, really cuts down on the back and fourth with guests
Yes!! I've been a huge fan so far. Guesty can definitely be a little glitchy at times but that comes with the growing pains of a really cool company. Stoked for Guesty to build out a review software so my direct bookings can leave reviews and further build credibility.
You need to make it a minimum amount of days stay of like 3 or 4 that way the expensive cleaners don’t have to come every single day
You're a beast. Love the transparency on numbers and specifics.
That's solid in my opinion considering you paid annual property tax and insurance up front and it was your first month seeing the numbers. Once you make those adjustments you'll crush.
“You’re a beast”
You’re a 🤡
Maybe the next big thing will be the hybrid mobile home container park.
What luxlap color did you get? I want to get the same color pattern
Hi Devon, I'm wondering if you had your Airbnb app set to direct booking? I'm wondering if Guesty's direct booking is more popular than Airbnb's? Thanks
Awesome
A property like this out by me on eastern long island would easily fetch $1200/night during the summer months. $1500/night easily if you added a pool. I have a family friend who has an 1800sq ft house thats literally uglier then this and is just a box shape with a pool and a hut tub and from Memorial day to labor day they are booked the whole time for $1800-$2000 a night
I love the bin
Lol thanks! Yeah i love how it turned out!
How did you get your initial startup capital? Is there a way to do something like this with very little money down? If I'm looking for unicorns, let me know. :) Awesome job, by the way. I'm a new subscriber and loooooove The Cedar Hollow project so far. The design of that is fantastic!
Hosting is a difficult business and having consistency on cleanings and catching damage BEFORE a new guest checks in will be a big challenge. The ski season is also ending; I'd be interested to see if you get more ski visitors or more hiking/fishing guests. You have built something relatively unique for the area though and that will help attract guests.
Yeah, I've heard from other hosts in the area that summer is typically the high season and that the early spring/May is typically a bit lighter on occupancy.
@@devonloerop Keep making videos about how the occupancy is going. I have a long term goal to build something similar; I'm leaning towards a cement and glass cube of some sort. I have some land in the area that I'm just getting started working on.
How much ad rev have you made from the social media aspect of the build?
I feel like the social media and ad revenue was a must for this. It's really awesome but so expensive and the upkeep with cleaners and replacing stuff like cleaning staff , furniture and septic systems will likely add another 500k over the next 15 years which is where I think you could break even if the hype stays here and books out around 75%-80% of the time. The ad revenue and the lumpsome if you sell at the right time or after the 15 years will be worth it if everything goes smooth and people are always filling dates
You should account the anual expenses /12 for it to be a fair calculation, no point in seeing it that way.
Other than that, great insight on the operation man
So how do you get a loan approved for something like this if it isnt built yet? Curious how you prove value of it for a bank to give you a loan.
Maybe you could build a natural heated sauna and spa! 😊
Take a shot every time Devon blinks
He don't blink much I'm sober 😂😂😂
Make the $XX Label Red on the thumbnail. Trust me.
Do you have to pay an HOA or POA fee?
How did you finance this?
Sowhat if you have your ownmoney how much is one òf thebox
Do you have a video of the entire build of the container BnB?
Yessir, check out my channel. Breaks down all the processes and costs
Will do thanks
Paying almost $100 per day for cleaning is nuts.
Question how much money you put in your pocket after all the fees etc . Is what I’m trying to understand.
Do you have a stop loss where if you truly start losing money on Air BnB you can sell it for the equity?
Big following isn't equal to "high bookings". Many "influencers" has went into that trap for example meet and greet and so on. What you sell is a experience in a unique house.
Very true, the following means nothing. But fortunately this place is an incredible experience and guests are loving it.
utilities?
That was to be expected, actually
Hey Devon, I am getting ready to purchase a condo in my Area (Orlando) and I'm not sure what type of due diligence I should do to make a decision, any advice?
I do offer consulting calls if you wana to chat on a call. Shoot me an email, info@thepacificbin.com
What is the Airbnb bust you mentioned in the video? Is Airbnb a struggle right now?
With recession fears there's concerns that bookings are slowing down (especially for hosts with not very unique, run of the mill homes). I've even heard from my cleaners that some of the other airbnbs they clean for aren't nearly as booked as what they used to be.
Land is free?
I feel as if you could definitely be charging a little more per night. I've paid a few hundred a night at a decent hotel in the city. What you're offering is a unique home out in the forest. Idk maybe I just value your project more than most.
hahaha i'm with ya but the vast majority of people on people on here think I'm insane for charging 400-600. Even though that's right on par with other homes in the area.
Devonyou have mynevpewname
i care about the fake numbers because you should always do 1/3 of your projected rental occupancy.
its hella pricey, just checked some off season prices.
Howmuchis5of them
No offense bro but you got some long teeth. Love the effort in this build you did though. Finally a realistic price. I’m in Mukilteo and keep watching all these people building houses 2,000sqft for the price of $200-$300k in the Midwest and the south. Got tired of watching all those cheap prices and was like “do that in Washington for that same price” lol
you should be charging your guests for the cleaning 100% mainly because that's a cost you have, and a lot of Air BNB's do that.
Skip to 5:16
👍📊
mm That doesn't count, you paid 12 month expenses under a 1 month revenue. The expense that hit me the hardest was the cleaning bill's. Thats harsh, close to 25% of your gross. Your doing fine bro, early stages, you have 100% occupancy. You may not be in the serious money yet, but you have a ton of equity and a property that will be paying itself off easily and able to liquidate if it doesnt. GG. Imagine someone who did the same with out the social media presence and was running at 40-60% occupancy. Which you classified as a bear market but i would consider a median.
Yeah I'm definitely thinking I need to figure out how to get cleaning down a bit. Appreciate the feedback.
Your income from this is less then a duplex for like 1/3 the cost of build
So in best case scenario, you start profiting in like 15 years and you’ll have to renovate at that point
He’s including the $4000 to pay the loan off. He’s legit making the estimated $50k profit.
You need an accountant. These numbers are skewed. Annual figures are the relevant numbers for a business.
I just watched the cost to build episode and honestly I was wondering why he just didn’t sell it for $200k and up profit.
I personally don’t see long term how this is going to go. There are over a million followers but he only has 45k subscribers on YT. I don’t know exactly where it is located but the winter months are going to be brutal renting it out. And even if the hype dies down, $50k probably isn’t worth the stress and time.
Wish this dude the best though. It was an awesome project.
So unrealistic. You could have done a simple breakdown with the property tax and insurance broken out into what the monthly exposure is versus trying to scare people away with a fake loss that month.
Let me tell my story :)
So the cost of the property was 700k and the net income is 50k. That works out to 7% earnings on investment and a lot of hard work to build and ongoing. Fine if it's for fun but not great as a business, you could have just done a mutual fund and got 7%.
7% if everything goes well
Considering that you spent 550k on that house with a good income of 50 to 60k as you said (even though I think that's a little bit low, we'll see in a year) in less than 10 years you'll have your money back.
For me Its worth it, I can see you in your 40s with a good income related on the amount of hours spent on that type of work, I'm quite sure that you have another job and maybe with the money earned in the next years you are gonna make more investments, so going from paycheck to paycheck is not a problem anymore
He spent more than 550 if you include cost of land. More than $700k.
@mahno730 plus property taxes and property maintenance is not cheap.
Yeah dont let other use your house is all I'll say I don't know why you bother with putting that on Airbnb I think it's due to you thinking profit but also you being addicted to the Internet and needing extra cash
I’d love to hear how much this guy still owes on the house 🤣🤣🤣🤣
All I can say is, regardless of what the future holds you learned a hell of a lot in a shore period of time son.
He might lose this house without youtube money.
I've made like 13 chicken sandwiches worth of UA-cam cash.
Y’all are not as smart as him idk why I would even look at the comments
Soyboy thumbnail. Mouth gaper
😂
I’d love to hear how much this guy still owes on the house 🤣🤣🤣🤣
Tracking to be paid off in 3.5 years 😘