As a Certified Pool Operator, if you would allow me to add my two cents about the heater and pool cleaner issue, that pool heater should have lasted for sooooo much longer than 3 years. If I were to guess what happened to have to replace the entire heater is the chemistry of the pool was corrosive and ate away at the heat exchanger. I would definitely recommend getting a pool cleaner who will check the chemistry and balance it at least twice a month. Also, for sure when the pool is not heated keep it at a specific temp above 65°F otherwise you could be doing more damage to the heater if it is being raised by more than 25 °F in one go. Hope this helps
Normal pool service in California is weekly where all chemicals are balanced. Considering it’s Palm Springs and an air bnb it probably needs to be serviced twice a week in the summer unless it’s a salt pool. $250 doesn’t sound too bad to me. I know in a previous summary of hers I saw she didn’t seem to understand the filter cleaning concept. I wouldn’t compare an air bnb to a neighbors pool that will have a much lower bather load.
I always appreciate that Shelby is smart, transparent, relatable and down to earth. Also not defensive when it comes to criticism. Favourite TH-camr by far!!
Great video. I'm glad to see you did better this year. My husband and I met Dad and Mom Church today. They were very gracious when I recognized them. It must seem weird to them to learn that a 70 year old former Realtor follows their daughters on TH-cam. 😂 However, I am entertained and informed by you both. Thanks for being here!!!
Small tip - an accountant could use accrual methods to accurate assess profitability in situations like this, where the money comes and goes with different timing than it was really earned.
Great job, Shelby! I love how you are making incremental changes each year to make the property more profitable! I love that you get to use the house as well. It is SO adorable!
"You can't sleep in your stock market portfolio. You can't have friends over to it." Funny and so true. I love the transparency of these annual reports!
I can cash out my stock portfolio in about 5 seconds, how long would it take to cash out a home? Plus I'm not crowding out some family that would love to live in that home.
I thought the same thing but I changed my mind when I noticed there is no more snow available at my place when ppl are actually available. I literally go there only once a year and it is way too far for my friends 😢. I will buy something for my residence, cash only though.
@shelby I’m impressed! This series, the production, your research and sharing numbers with your honest thoughts on both your applied experience and the market… well done. This is the kind of content I’m here for!
I appreciate the honest reflection of Airbnb’s place in the housing market. I personally have only bad experiences with the Airbnb next door to my home. So I’m thankful you present not only the financials, but also the ethics. The Airbnb next door came in as a party house and none of the neighbors are happy about it being here. The owner has over 15 properties, which is sad that these are no longer available as homes for people to live in.
I bought a cabin in the Smokies in early 2022, and I love your Palm Spring updates because we have very similar numbers and goals with the property! I have the same trend with bookings, used the first year to update the property and learn the market. I've self managed up until last week and hired a local property management group to deal with the day-to-day. Cheers, 2024 will be another year of good appreciation, principal paydown and depreciation for no income taxes
I absolutely love the last part of the video, speaking on the resentment in the market rn for investors turning property in rentals. The options to build to add to inventory and just the transparency on that comment. That's what I love about this channel. Information is always given to us, which creates trust in your following❤❤😊
Love your vids Shelby. The transparency and complete breakdown of costs is pretty unmatched in today's TH-cam ecosystem. 👌Actually extremely helpful to future millennial homebuyers like me.
You break it down so well and make it easy to for me and my adhd to understand lol You would be a great teacher. I would definitely take your masterclass!
Thanks for mentioning about new construction! As someone who lives in a touristy area it most definitely affects the housing market when someone makes a regular home into an Airbnb!
Congrats on making a profit this year! I love how you shared shots of your Excel or Google sheets with all your numbers - as always, I love the transparency!
Does anyone else also stay and watch all of the ending ads so that Shelby gets a little bit more from ad revenue or just me? LMFAO I do it on purpose even if I am right beside my device that I’m watching on. Thanks so much for sharing Shelby, always love your videos.
Hi Shelby, can you make a video about how TH-cam video views have gone down for most creators across the board, and how you being a creator, and or others deal with the lower ad revenue? And maybe even strategies used to make enough money in these conditions? Or at least how it’s dealt with? I am not a creator, but am genuinely curious just based on the trend I see watching a lot of TH-cam videos from lots of people when I have spare time.
Investing in Airbnb properties has been a lucrative venture for me. 🏡💰 It's like having your own mini-hotel empire that generates passive income month after month. By carefully selecting the right locations and providing top-notch hospitality, my Airbnb investments have consistently outperformed traditional real estate. I wasn't financially free until my 40s, and I'm still in my 40s. I've got 3 Airbnb's already, earn on a monthly basis through passive income, and achieved 3 out of 5 goals. Investing was the wise decision I made.
I wholeheartedly recommend Regina Louise Collaro, a distinguished financial advisor based in the US. Her collaboration with an international organization has been pivotal in my financial success. Regina's expert guidance has not only supported me consistently from educational investments to planning for retirement, but it has also played a critical role in significantly enhancing my wealth. Finding the right financial consultant is as vital as choosing the right life partner-both decisions shape your future profoundly. I feel incredibly fortunate to have Regina as my financial consultant, who has truly transformed my financial landscape and helped me thrive financially😊
That's great; your investment advisor must be really effective! I've heard from others how helpful investment advisors can be in improving financial stability. Could you share more information about this advisor?
This is a shocker seeing Regina Louise Collaro being mentioned here. I always had mixed feelings about hiring a lnvestment advisor. For the record, I started working with Alex in 2018, and he manages about 70% of my lnvestments, while I manage the other 30%. My philosophy is that I care more about my own money than anyone else, but he made me accept that they have wealth of information on current conditions and future trend
Tip: Have you considered a Tesla analysis to add PowerWalls to your solar? You get a 30% tax credit this year, and only buy power from the grid when its cheaper and get emergency power in a storm. (You could add a Tesla wall charger to attract EV renters).
Shelby, this vlog is so informative! You've always given us transparency. I love your home and location! I wish that you could rent it out unlimited times per year! It was so.nice seeing your mom and dad! 😎🌴
So glad you went for solar Shelby!!! you will not regret the investment. Our install is around the same size as yours and they paid for themselves in ~8 months and that's in the PNW! you should get way more sun than we do in Palm Springs :) Would love an in-depth video going over your total costs and examining your savings over time.
That was SO informative!! And the cherry on top was the professional production. Your ethical stand on family homes being snatched up for short stays was on point! Well done. Thank you for sharing your wealth of knowledge.
That capital appreciation is fantastic. Suuuper lucky timing on the home purchase - property values in Palm Springs and the rest of the Coachella Valley went up so much from 2021 to 2022!
I just passed around 15 months and did a first year 12 months video. I'm excited to do a year 2 next year to see where it goes! Thanks for making this video. Good insights
We had a great first year for our STR and I was surprised to see how low our profit margin was after all of our expenses. I appreciate that you mentioned the house appreciation as a plus tough, and like your family we use our location as well and really enjoy it. Overall it's a ton of work for us and I'd probably make more money having a long term annual renter in there but my wife and I enjoy being hosts in our lake side cottages and allowing people to come to the area. I also respect your candidness about pivoting pricing expectations with this past years economy. Great honest video!
As a short term rental owner as too we’ve lost money on cash flow the last two years but the appreciation and personal use has completely made it worth it as well!
Hi shelby, you should really look into installing aerothermal heat pumps for the pool. It's really energy efficient, especially with solar panels, and it's considered renewable energy, so maybe you have some extra taxes writeoffs? Don't know how that works in palm springs tbh, just give it a thought jn case it might work for you!
This is a great outcome. Congratulations. Equity gained and appreciation is good enough. Any positive cash flow is just icing on the cake along with personal use.
What role does Monica still play in this venture? You said you created a LLC for this property which I understand is common practice, is Monica then also a member, and do you guys share the profits this way? Does she still pay 50% of the mortgage?
An insightful journey into the financial realities of Airbnb hosting, providing valuable perspectives on the challenges and successes faced in the second year. A must-watch for anyone in the short-term rental space.
Shelby, I really loved this video and I'm sorry you are getting hate over you owning a beautiful property that people away from Palm Springs can always come to and really enjoy the wonderful scenery of of Palm Springs!
Given that both your parents and sister now live in the area, for you there is the great benefit of someday possibly living there full time and having a home that you can afford and with a lot of equity if that time comes.
love the transparency! I bought in Joshua Tree back in 2020 and after a ton of remodeling, I decided against the short term rental route.I mostly used it myself and shared with some friends. I am finally prepared to list it as a longterm rental. We'll see how it goes...
Cool to hear that you finally got solar - looking forward to seeing that video. (It seems like SCE will shortly start crediting you based on the new Net Billing Tariff which definitely adds some complexity.) Was the new pool heater a gas heater like the original? As a few other people here have mentioned, it seems like the way to go would be an electric heat-pump pool heater programmed to run at midday from otherwise-exported solar.
If you are saying that sub 4% unemployment, a strong stock market, strong GDP, historically average interest rates, (and mortgage rates down almost a full point recently), inflation under control, (and wages outpacing said inflation) is not a strong economy, I’m not sure what one would would in fact consider a healthy economy.
Shelby you mentioned solar pool heater in your blog. Have you considered adding a solar heater as a passive just always working, with the main pool heater as a booster or to heat what solar cannot. Also there are so many ways to make your own solar pool heater and for so cheap. Black hose laid on roof with a small pump. A quick diy project that pays back.
I would beg to differ on your last point. I use my residential property (basement suite) and rent it out on Air BnB. Guests absolutely love it! We reduce our monthly housing costs by 70% each month. Without doing this - housing costs would quite simply be unaffordable. Instead - find a way to leverage your residential property & house hack to lower your housing expenses. Nice to see that you were able to turn a profit last year! Cheers 🥂
It only makes 70% NOW. We started off with our daylight basement making about 50%. After 20 years, it was making $800/mo MORE than the mortgage each month. We didn't AirB&B though, we just straight rented it out.
@@cedarforest4621 yes - 70% now. When the home was purchased with the initial rate, 95% of the total housing costs were covered. Due to the rising rates, my monthly cost to operate is +$1,100 per month. Still a fantastic option regardless! Highly recommend Air BnB. Way higher opportunity for increased revenue vs traditional long term rental. More work = more $$
In many of our jurisdictions the only short-term rentals allowed will be a primary residence of the owner. So weeks while you are away, bedroom, etc... Gone are the days of people hoarding properties for this purpose.
Love this info. I agree if you are going to buy a vacation home to rent out, find a place you love as well so you can get many years of enjoyment from it. We chose Hawaii and love having our little place there. ❤
The last 13 minutes of honesty was pure gold. People need to realize that at today’s interest rates it simply does not make sense to buy a house and make it a short term rental. Not to mention the other things she mentions about taking a housing away from someone needing to buy a home for themselves to live in.
So happy for you Shelby! Great ideas to reduce your expenses. I too own an Airbnb in Kissimmee, FL and we love that we can use it and enjoy it with our friends and family all the time (we live in Miami so it’s a 3.5 hr drive). I agree with all your tips but don’t feel bad for turning a regular home into an Airbnb. You and I are not your typical Airbnb owner who purchased the house as a business. People have been owning vacation homes forever and that’s exactly what we did, except we rent it out when we aren’t there to help us pay for the house ❤ thanks for your video, love watching them!
Thanks for sharing. A person doesn't think that an air bnb investment would be a speculative capital appreciation play. Way more risky than a cash flow. That would be enough to scare me away.
Shelby I had a STR about 8 years ago and at that time per Airbnb if you called it a “Business “ and took Tax write offs? You were allowed to be in it for 2 weeks a year. Otherwise you couldn’t call it a business and take write offs. I didn’t know this until like you we had been enjoying it. BTW it was in Idyllwild. Just thought you may want to check this out to make sure it’s still not a thing. Congratulations 🎈 on profit.
@@Kbearable Someone mentioned she put in in a corporation. Not sure about there but if you use the property in a corporation here it is shareholder benefit and you could be double taxed for not paying fair value rent to he corporation when you stay.
She needs to drop that property manager if she has to suggest to them to lower the price. They should be maximizing those rental contracts. Shelby should run this herself it’s easy to do no a days and she’ll be saving 20% on property manager fees
Thanks for doing this. If I buy a house in Palm Springs I am going to look for a place with a rectangular pool with a southern exposure so I can use a retractable solar pool cover.
I hadn't heard of solar pool covers before, but if I understood the energy.gov article correctly, solar pool covers actually *reduce* solar heating of the pool, to prevent the water from evaporating. It's the opposite of solar thermal pool heating, with black mats/tubes full of water on the roof that heat up in the sun. Good point that a pool cover would probably go a long way to reducing the gas bill though. The ideal approach would probably be to also switch to a heat-pump electric pool heater, and use otherwise-exported electricity from the new solar panels to efficiently heat the pool. My understanding is that that's a better approach than old-school solar thermal pool heaters.
I appreciate air b and B's but props to you for promoting the building of more housing! Whether it's for short term rentals or otherwise, the world needs more housing! There are housing shortages everywhere
You should purchase an electric pool heater and install solar panels, it would probably make pool heating no cost al all with time, i have one in my house and works well
Fascinating. The only way I would do an Air BNB would be if I had a house with sufficient property to build on my own property. Then, I'd be able to easily do most of the maintenance and cleaning myself.
As a Certified Pool Operator, if you would allow me to add my two cents about the heater and pool cleaner issue, that pool heater should have lasted for sooooo much longer than 3 years. If I were to guess what happened to have to replace the entire heater is the chemistry of the pool was corrosive and ate away at the heat exchanger. I would definitely recommend getting a pool cleaner who will check the chemistry and balance it at least twice a month. Also, for sure when the pool is not heated keep it at a specific temp above 65°F otherwise you could be doing more damage to the heater if it is being raised by more than 25 °F in one go.
Hope this helps
She stated in the video she pays a pool guy. Is that person coming to their pool and not balancing the chemistry? Nah.
Normal pool service in California is weekly where all chemicals are balanced. Considering it’s Palm Springs and an air bnb it probably needs to be serviced twice a week in the summer unless it’s a salt pool. $250 doesn’t sound too bad to me. I know in a previous summary of hers I saw she didn’t seem to understand the filter cleaning concept. I wouldn’t compare an air bnb to a neighbors pool that will have a much lower bather load.
Shelby never disappoints with the transparency, love it! 💛
Yes, that's why i find her videos so informative!
I always appreciate that Shelby is smart, transparent, relatable and down to earth. Also not defensive when it comes to criticism. Favourite TH-camr by far!!
and has super sexy legs in those black tights she always wears!!!
Great video. I'm glad to see you did better this year. My husband and I met Dad and Mom Church today. They were very gracious when I recognized them. It must seem weird to them to learn that a 70 year old former Realtor follows their daughters on TH-cam. 😂 However, I am entertained and informed by you both. Thanks for being here!!!
I love that you addressed the ethics of air bnb when advising if someone should get into it or not. 👏🏻
Small tip - an accountant could use accrual methods to accurate assess profitability in situations like this, where the money comes and goes with different timing than it was really earned.
As an accountant that’s all I was thinking about haha
Yess her increase in total net worth as of 2023 end vs. 2022 end would also be a much more insightful number than profit esp for a startup venture 😊
Does accrual method calculates more exact appreciation and equity increase? If yes, then didn't she mention it near end of video?
Great job, Shelby! I love how you are making incremental changes each year to make the property more profitable! I love that you get to use the house as well. It is SO adorable!
Congratulations, Shelby! My solar business finally made a profit in 2023 too. It was a good year! Here's to a better 2024!
"You can't sleep in your stock market portfolio. You can't have friends over to it." Funny and so true. I love the transparency of these annual reports!
I can cash out my stock portfolio in about 5 seconds, how long would it take to cash out a home? Plus I'm not crowding out some family that would love to live in that home.
@@mikeodonnell11 I can also pay for a hotel anywhere in the world with the dividends it produces and not be stuck in one place.
I thought the same thing but I changed my mind when I noticed there is no more snow available at my place when ppl are actually available. I literally go there only once a year and it is way too far for my friends 😢.
I will buy something for my residence, cash only though.
@shelby I’m impressed! This series, the production, your research and sharing numbers with your honest thoughts on both your applied experience and the market… well done. This is the kind of content I’m here for!
I appreciate the honest reflection of Airbnb’s place in the housing market. I personally have only bad experiences with the Airbnb next door to my home. So I’m thankful you present not only the financials, but also the ethics.
The Airbnb next door came in as a party house and none of the neighbors are happy about it being here. The owner has over 15 properties, which is sad that these are no longer available as homes for people to live in.
Congrats to making a profit this last year. So great that you are learning so much about reducing expenses and sharing it with others.
I bought a cabin in the Smokies in early 2022, and I love your Palm Spring updates because we have very similar numbers and goals with the property! I have the same trend with bookings, used the first year to update the property and learn the market. I've self managed up until last week and hired a local property management group to deal with the day-to-day.
Cheers, 2024 will be another year of good appreciation, principal paydown and depreciation for no income taxes
If the gas pool heater fails again swap to a heat pump system (electric) and then use your free solar to heat the pool.
I absolutely love the last part of the video, speaking on the resentment in the market rn for investors turning property in rentals. The options to build to add to inventory and just the transparency on that comment. That's what I love about this channel. Information is always given to us, which creates trust in your following❤❤😊
Love your vids Shelby. The transparency and complete breakdown of costs is pretty unmatched in today's TH-cam ecosystem. 👌Actually extremely helpful to future millennial homebuyers like me.
LOVE the transparency! So helpful to hear. Loving all your videos lately.🤗🙌🏼
Your transparency is so inspiring!
You break it down so well and make it easy to for me and my adhd to understand lol You would be a great teacher. I would definitely take your masterclass!
I LOVE the transparency! I wish we saw more of this. It’s so helpful. Thank you Shelby!
Thanks for mentioning about new construction! As someone who lives in a touristy area it most definitely affects the housing market when someone makes a regular home into an Airbnb!
I always enjoy your videos, but as a small business owner myself these yearly recaps are some of my favorites. Congrats and keep up the good work. ❤
Congrats on making a profit this year! I love how you shared shots of your Excel or Google sheets with all your numbers - as always, I love the transparency!
Can’t wait to see the solar panel video!! 🎉 so amazing!
Always enjoy seeing updates on the Airbnb! Congrats on making a profit in 2023! Home Equity is big too.
Thank you so much for always putting these together! It’s really interesting to see these numbers every year and appreciate you being so transparent!!
Does anyone else also stay and watch all of the ending ads so that Shelby gets a little bit more from ad revenue or just me? LMFAO I do it on purpose even if I am right beside my device that I’m watching on. Thanks so much for sharing Shelby, always love your videos.
Hi Shelby, can you make a video about how TH-cam video views have gone down for most creators across the board, and how you being a creator, and or others deal with the lower ad revenue? And maybe even strategies used to make enough money in these conditions? Or at least how it’s dealt with? I am not a creator, but am genuinely curious just based on the trend I see watching a lot of TH-cam videos from lots of people when I have spare time.
Now to just wait and watch Graham video when it comes out
Thanks for the update! I love following along on your journey!
Investing in Airbnb properties has been a lucrative venture for me. 🏡💰 It's like having your own mini-hotel empire that generates passive income month after month. By carefully selecting the right locations and providing top-notch hospitality, my Airbnb investments have consistently outperformed traditional real estate. I wasn't financially free until my 40s, and I'm still in my 40s. I've got 3 Airbnb's already, earn on a monthly basis through passive income, and achieved 3 out of 5 goals. Investing was the wise decision I made.
Nice one,any investment tip? I would love to know how you made it this far and follow your steps
I wholeheartedly recommend Regina Louise Collaro, a distinguished financial advisor based in the US. Her collaboration with an international organization has been pivotal in my financial success. Regina's expert guidance has not only supported me consistently from educational investments to planning for retirement, but it has also played a critical role in significantly enhancing my wealth. Finding the right financial consultant is as vital as choosing the right life partner-both decisions shape your future profoundly. I feel incredibly fortunate to have Regina as my financial consultant, who has truly transformed my financial landscape and helped me thrive financially😊
That's great; your investment advisor must be really effective! I've heard from others how helpful investment advisors can be in improving financial stability. Could you share more information about this advisor?
you can easily find her information by doing a quick search. Feel free to reach out to her directly with any questions you may have.
This is a shocker seeing Regina Louise Collaro being mentioned here. I always had mixed feelings about hiring a lnvestment advisor. For the record, I started working with Alex in 2018, and he manages about 70% of my lnvestments, while I manage the other 30%. My philosophy is that I care more about my own money than anyone else, but he made me accept that they have wealth of information on current conditions and future trend
Tip: Have you considered a Tesla analysis to add PowerWalls to your solar? You get a 30% tax credit this year, and only buy power from the grid when its cheaper and get emergency power in a storm. (You could add a Tesla wall charger to attract EV renters).
Shelby, this vlog is so informative! You've always given us transparency. I love your home and location! I wish that you could rent it out unlimited times per year!
It was so.nice seeing your mom and dad! 😎🌴
I love these videos you make and show us the breakdown.
❤ your hard work paid off Shelby!
So glad you went for solar Shelby!!! you will not regret the investment. Our install is around the same size as yours and they paid for themselves in ~8 months and that's in the PNW! you should get way more sun than we do in Palm Springs :) Would love an in-depth video going over your total costs and examining your savings over time.
That was SO informative!! And the cherry on top was the professional production. Your ethical stand on family homes being snatched up for short stays was on point! Well done. Thank you for sharing your wealth of knowledge.
That capital appreciation is fantastic. Suuuper lucky timing on the home purchase - property values in Palm Springs and the rest of the Coachella Valley went up so much from 2021 to 2022!
I just passed around 15 months and did a first year 12 months video. I'm excited to do a year 2 next year to see where it goes! Thanks for making this video. Good insights
I appreciate this video because it's thoughtful, honest and detailed.!
We had a great first year for our STR and I was surprised to see how low our profit margin was after all of our expenses. I appreciate that you mentioned the house appreciation as a plus tough, and like your family we use our location as well and really enjoy it. Overall it's a ton of work for us and I'd probably make more money having a long term annual renter in there but my wife and I enjoy being hosts in our lake side cottages and allowing people to come to the area.
I also respect your candidness about pivoting pricing expectations with this past years economy. Great honest video!
'BETTER TO LOWER THE PRICE THAN NO ONE STAY THERE AT ALL ' I wish everyone thought like that Shelby ❤ luv you n your videos : )
I’m not even interested in owning and Airbnb but I watched the whole thing. Love this kind of videos where people are honest about finances
As a short term rental owner as too we’ve lost money on cash flow the last two years but the appreciation and personal use has completely made it worth it as well!
Having watched this process from the start, I love these annual updates!
Hi shelby, you should really look into installing aerothermal heat pumps for the pool. It's really energy efficient, especially with solar panels, and it's considered renewable energy, so maybe you have some extra taxes writeoffs? Don't know how that works in palm springs tbh, just give it a thought jn case it might work for you!
Roof repair every ten years? Where you pull that stat out of. Most home wonders be broke. It's moe like every 20-25 years.
This is a great outcome. Congratulations. Equity gained and appreciation is good enough. Any positive cash flow is just icing on the cake along with personal use.
What role does Monica still play in this venture? You said you created a LLC for this property which I understand is common practice, is Monica then also a member, and do you guys share the profits this way? Does she still pay 50% of the mortgage?
An insightful journey into the financial realities of Airbnb hosting, providing valuable perspectives on the challenges and successes faced in the second year. A must-watch for anyone in the short-term rental space.
So helpful. Love the transparency. Glad that it is working out for you and your family.
I looked into that T-Mobile home internet. The speeds Suuuuucked.
Yup. People get tricked into the video streaming or uploading speeds, then you try to do literally anything else and it’s MISERABLE.
Shelby, I really loved this video and I'm sorry you are getting hate over you owning a beautiful property that people away from Palm Springs can always come to and really enjoy the wonderful scenery of of Palm Springs!
This is such a helpful video. Thank you for sharing, Shelby!
love the transparency and really happy for you w/ all of that equity appreciation!
Given that both your parents and sister now live in the area, for you there is the great benefit of someday possibly living there full time and having a home that you can afford and with a lot of equity if that time comes.
Inspiring content Shelby, keep it up!
love the transparency! I bought in Joshua Tree back in 2020 and after a ton of remodeling, I decided against the short term rental route.I mostly used it myself and shared with some friends. I am finally prepared to list it as a longterm rental. We'll see how it goes...
Cool to hear that you finally got solar - looking forward to seeing that video. (It seems like SCE will shortly start crediting you based on the new Net Billing Tariff which definitely adds some complexity.) Was the new pool heater a gas heater like the original? As a few other people here have mentioned, it seems like the way to go would be an electric heat-pump pool heater programmed to run at midday from otherwise-exported solar.
Love this! So much great information in this video!!
Congrats Shelby!🎈🎈🎈
If you are saying that sub 4% unemployment, a strong stock market, strong GDP, historically average interest rates, (and mortgage rates down almost a full point recently), inflation under control, (and wages outpacing said inflation) is not a strong economy, I’m not sure what one would would in fact consider a healthy economy.
People do not remember real pain in down times. Having to skip Starbucks once a week is now a recession.
This is really interesting! Thank you for my sharing. My husband and I enjoy learning from you!
Yay for positive cash flow! I have also found the appreciation/equity gain and personal enjoyment much bigger returns
Can’t wait to hear all about the solar panels!!!
I make sure not to miss these types of videos of yours. And congratulations for making a profit this year🎉🎉
Appreciate the transparency. Look forward to yearly earnings video as well.
Shelby you mentioned solar pool heater in your blog. Have you considered adding a solar heater as a passive just always working, with the main pool heater as a booster or to heat what solar cannot. Also there are so many ways to make your own solar pool heater and for so cheap. Black hose laid on roof with a small pump. A quick diy project that pays back.
I love your videos Shelby. You should consider someday maybe teaching business/economics at a College someday.
Nice insights Shelby 👍looking forward to the effects of the solar panels 🤞
honestly even if you lost some money it’s still worth it because of all the time you used it and equity gained!
agreed!!
I learned so much from this video! Thank you Shelby.
Airbnb has absolutely WRECKED Palm Springs
Congrats on turning a profit Shelby! 👏 low key wana use this video as a template for my "how much I made in first year video"
thank you!! and go for it! looking forward to yours!
I would beg to differ on your last point. I use my residential property (basement suite) and rent it out on Air BnB. Guests absolutely love it! We reduce our monthly housing costs by 70% each month.
Without doing this - housing costs would quite simply be unaffordable. Instead - find a way to leverage your residential property & house hack to lower your housing expenses.
Nice to see that you were able to turn a profit last year! Cheers 🥂
It can work well with house hacking!
It only makes 70% NOW. We started off with our daylight basement making about 50%. After 20 years, it was making $800/mo MORE than the mortgage each month. We didn't AirB&B though, we just straight rented it out.
@@cedarforest4621 yes - 70% now. When the home was purchased with the initial rate, 95% of the total housing costs were covered. Due to the rising rates, my monthly cost to operate is +$1,100 per month.
Still a fantastic option regardless! Highly recommend Air BnB. Way higher opportunity for increased revenue vs traditional long term rental. More work = more $$
came here to say the same thing!
In many of our jurisdictions the only short-term rentals allowed will be a primary residence of the owner. So weeks while you are away, bedroom, etc... Gone are the days of people hoarding properties for this purpose.
Love this info. I agree if you are going to buy a vacation home to rent out, find a place you love as well so you can get many years of enjoyment from it. We chose Hawaii and love having our little place there. ❤
The last 13 minutes of honesty was pure gold. People need to realize that at today’s interest rates it simply does not make sense to buy a house and make it a short term rental. Not to mention the other things she mentions about taking a housing away from someone needing to buy a home for themselves to live in.
So happy for you Shelby! Great ideas to reduce your expenses. I too own an Airbnb in Kissimmee, FL and we love that we can use it and enjoy it with our friends and family all the time (we live in Miami so it’s a 3.5 hr drive). I agree with all your tips but don’t feel bad for turning a regular home into an Airbnb. You and I are not your typical Airbnb owner who purchased the house as a business. People have been owning vacation homes forever and that’s exactly what we did, except we rent it out when we aren’t there to help us pay for the house ❤ thanks for your video, love watching them!
May i ask if central Florida is better than South FL re. Airbnb? Thanks
Can you make a video of how much you made on TH-cam in 2023?
It’s so tough right now with the economy, inflation, and the growing public distain for AirBnB. Keep on keeping on!
Another great video! I love your videos so much!!
Holy shit 300k in almost 3 years??? And you have an awesome short term rental fully furnished? That’s wild, great job
You could make a video about paint drying. I would watch it
Thank you for sharing, Shelby!!
I own a small airbnb that is ski in ski out in Panorama in BC 🇨🇦 if you ever want a little getaway 😉
Thanks for sharing. A person doesn't think that an air bnb investment would be a speculative capital appreciation play. Way more risky than a cash flow. That would be enough to scare me away.
Shelby I had a STR about 8 years ago and at that time per Airbnb if you called it a “Business “ and took Tax write offs? You were allowed to be in it for 2 weeks a year. Otherwise you couldn’t call it a business and take write offs. I didn’t know this until like you we had been enjoying it. BTW it was in Idyllwild. Just thought you may want to check this out to make sure it’s still not a thing.
Congratulations 🎈 on profit.
Yep, still a thing. 14 days max use or it becomes a vacation home, and you have to allocate costs.
@@Kbearable Someone mentioned she put in in a corporation. Not sure about there but if you use the property in a corporation here it is shareholder benefit and you could be double taxed for not paying fair value rent to he corporation when you stay.
I always message before finishing the video. lol. I’m glad to see you added solar. Should make a difference..
She needs to drop that property manager if she has to suggest to them to lower the price. They should be maximizing those rental contracts. Shelby should run this herself it’s easy to do no a days and she’ll be saving 20% on property manager fees
projected Profits for 2024: 2.4x. Also incredible video Shelby!
Thanks for doing this. If I buy a house in Palm Springs I am going to look for a place with a rectangular pool with a southern exposure so I can use a retractable solar pool cover.
I hadn't heard of solar pool covers before, but if I understood the energy.gov article correctly, solar pool covers actually *reduce* solar heating of the pool, to prevent the water from evaporating. It's the opposite of solar thermal pool heating, with black mats/tubes full of water on the roof that heat up in the sun. Good point that a pool cover would probably go a long way to reducing the gas bill though. The ideal approach would probably be to also switch to a heat-pump electric pool heater, and use otherwise-exported electricity from the new solar panels to efficiently heat the pool. My understanding is that that's a better approach than old-school solar thermal pool heaters.
I appreciate air b and B's but props to you for promoting the building of more housing! Whether it's for short term rentals or otherwise, the world needs more housing! There are housing shortages everywhere
Yo. This was so educational, I learned a lot.
Good video. You didn't mention anything about depreciation though.
WOOOOOO SO READY for this video
You should purchase an electric pool heater and install solar panels, it would probably make pool heating no cost al all with time, i have one in my house and works well
Cool! Keep it up Jasmin!
Fascinating. The only way I would do an Air BNB would be if I had a house with sufficient property to build on my own property. Then, I'd be able to easily do most of the maintenance and cleaning myself.
Great video! Thanks for all the insights :)
I actually own a house and was thinking about doing Airbnb with my home while I’m overseas for 6-8 months because I’m home mostly for 3 months.❤
bravo on making a profit that's great . yes cash buyer is the best policy these days . glad your trying to cut costs as well . thanks for posting