The REAL Cost of Getting My House on Airbnb... And How Long It Will Take To Make It Back
ฝัง
- เผยแพร่เมื่อ 11 ก.ค. 2024
- Check out Here to invest in vacation rentals: here.co/shelby
0:00 - Intro
0:45 Thank you to Here for sponsoring
2:16 Breakdown of the cost of the house, mortgage, etc.
4:15 Renovations cost breakdown
7:20 Figuring out how long it will take to make a return on investment
7:40 What AirDNA thinks we will make
8:02 How Much I've ACTUALLY Made So Far
9:25 Monthly Expenses Breakdown
10:18 ROI based on our current revenue
11:20 ROI based on AirDNA's estimates
12:17 Final thoughts... was it worth it?
Vlog Channel: / othershelby
Instagram: / shelbychurch
Twitter: @shelbychurch
Snapchat: shelbychurch
What Equipment I Use:
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For business inquiries please contact shelby.church@a3artistsagency.com - แนวปฏิบัติและการใช้ชีวิต
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I would love to see a version of this video where you factor in how much youve made on videos about the airbnb bc im sure that makes the profit unbelievable!
YES! And how much the house has appreciated.
YES
That’s a really good point.
@@Ggggc14 in Iced Coffee Hour podcast she said that the house now costs 1.2 or 1.4 million dollars
and iF She Sold it tomorrow, Would it Be Profitable or Would she take a Loss ?
Tip: If you added a rooftop solar pool heater for about $8K installed, it might save you $1K a month in electric. After paying for itself in 8 months, it may save you $12K per year.
Very True - Solar Water Heating Gets Smoking Hot 🔥 ! i Had it once on My Dads House , it Gets so Hot it Boiled the Water in the panels.
@@OcRefrig That is why it should come complete with thermostat and electronic controlled pump.
@@jimwhitehead1532 Problem comes when - Solar water tank is at Max temp - Water is Not being used. u can circulate all you want !
No way to turn off the Sun from shining on the panels.
@@OcRefrig Some use a Watts recirculation valve and pump kit ,that uses the cold water lines in the house as a heat sink to prevent overheating. For technical details, call a solar company, as I am not an installer.
@@jimwhitehead1532 appreciate the info. 👍
I don’t know if you know just how HELPFUL it is to have someome be so transparent about these numbers 🏆🏆🏆
Facts
so comprehensive, gives you a great idea of what the costs look like to own an AirBnb short term rental!!
This is a very good reveal. I have done this in Texas with similar results. I’m glad that you showed the actual cash out of your pocket to start this project. To do it right and relatively financially stress free one needs a pocket full of money. You adequately demonstrated this.
Shelby,buy some solar panels and offset your electricity charges, initially some investment is needed,the power bill savings will pay for the panels in 5 years and last at least 25 years. Gives you power independence too, and environmentally friendly to. You will massively reduce your electricity bill! Much love shel ✌️❤️🇬🇧
We don't have a pool, but with the solar panels that came with our house when we bought it makes our electric bill $15-$25/month!
You can market it as a "Green" house also!
I love how transparent you are in all of your videos 🙌🏻
MUAHAHAHAH
From someone who runs 5 airbnbs. Theres a lot of pros to look forward to
1) you're just getting started, once your reviews come in, you get superhost, you become more credible and people book more often for more $$$. Your 3K net / month is grossly underestimated. I would project 7-10K net by november
2) charge more for pool heating. Im assuming its gas heated based on that bill, also get a pool cover during peak winter and put in the rules to have the pool covered. It keeps the heat from escaping the pool hence less time needed to heat. This cut my heating bill in half
3) Electricity seems kind of high especially for spring season, we sure those windows are dual pane?
4) yes, the renno and furniture costs are really really high but whats done is done, key thing is #1
5) If you havent yet get beyond pricing, its dynamic pricing and it can adjust your rates automatically. One thing i noticed i got more of was weekday bookings and longer term bookings once i activated it, it only costs 1% of booking
6) Its gorgeous, yes you went a little overboard but im assuming you're ARV is over 1M now so consider your renno costs already covered.
Keep doing you, its going to be the best investment you ever made!
I am so glad to see women who do well and earn money. Go girl!
Long time watcher, first time commenter here. This was probably the BEST video I've ever seen about Airbnb rentals on TH-cam. Love the transparency and the breakdown of all the costs/profits. This definitely gives me a lot to think about as I plan on diving into the short term rental market soon. Thanks Shelby!
Shelby is the kind of person one should have as a best friend 😃. She is so deliberate, knowledgeable and pro active.
Always appreciate your transparency!
I think you could also factor in how much you made off of TH-cam videos that documented the house renovation process. It’s outside of the Airbnb realm but renovating a house gave you weeks of awesome content to share.
I’d suggest getting used furniture off of marketplace etc for rentals. It’s never worth spending so much on something that will potentially be overused and destroyed and you can get plenty of fairly new pieces for the fraction of the price.
All depends on what area and what your hoping to get per night. Her nightly cost is roughly 650 a night. If I'm paying that I'd expect nicer furniture in the house. It's hard to find pieces that flow all used.
@@Lisac9011 whatever new furniture she bought will look used after a year tops. You can get pretty decent pieces off outlets or marketplace. You just don't invest into new furniture and kitchen appliences for a rental. Unless it's Ikea.
@@cheesecakesmellsgood and I'd completely agree if they weren't charging over 400$ a night... if I stay at a nicer hotel I expect nicer things. I'd not I'd stay at a cheap motel. Same as a air bnb. She will be getting her money back by being able to charge more. Plus if anything gets damaged they have coverage for it. No real loss
@@Lisac9011 you are paying for location. There are houses in the area that cost 2K per night.. she's charging $600 for a house that can fit 10 people on the floor, potentially. It's not that much.. whatever they camage, they never repay full cost of 30K furniture. Trust me as a homeowner - you don't want to invest excess into rental property...
I am renovating my house for a vacation rental now. This series was super helpful!
Never even thought about how much goes into a project like this. Thanks for the video, Shelby
The cost was too much 😆 I bet you're relieved the renovation is done now. Now it's just getting people to book it!
You did a fantastic job on this property, your return is solid, home will continue to appreciate in value too
Please do the same for the Joshua Tree property!!! This was a great video. I was just as curious as everyone else... I love videos like this bc as a newer home owner and I have in ground pool too... I like to learn things like this..
Pretty eye opening to hear all the expenses. Thank you for being so transparent with your investments!!
that is insane, congrats on all the success!❤️i am NOT a renovator at all so i really admire what you and monica have done!
Factor in the travel to get to and from during those 14 months. Loved watching this entire series!
When the market goes down then it's buying opportunity. If the market goes up then you are making money. If you stay invested and ignore the market's ups and downs, you'll make a lot of money in the long run; however, a severe market correction causes a lot of margin calls and sell-offs, driving the market even lower. currently, I'm up 13% in my diversified portfolio. As crazy as it sounds some still make enormous returns from this seemingly unknown market. gotta be greedy when others are fearful
exactly what I'm personally planning on doing now the market is down, but I have no idea about stocks to buy or what assets that would yield the highest potential and so on. Your portfolio is freaking awesome, you seem to be doing well yourself. how do you select stocks you invest in?
@@dannyvera8475 I have my portfolio very well-diversified, though I did it using trad signals from a US regulated broker *PRISCILLA DIANE AIVAZIAN* financial analyst and CNBC contributor and it's been a huge relief. Good earnings and little to no engagement at all on my part. Her stock picks are top-notch, I don't worry about market trends anymore because she's quite the genius in trading and portfolio diversification
@@danieljamal3709 Do you mean copying her trades as it's been done in Etoro? Do you just give out your funds or copy them manually?
@@dannyvera8475 Yeah but I don't give out funds here, It stays right in my account. My account only mirrors her trades in real-time that's ideal for this system. Copy trading is 100% secured and very transparent to work with her, you don't have to send any funds over. you have control over your funds and can opt-out anytime you want just like in Etoro. Check out her name online and get in touch if you need help with this insane market. It's only a recommendation though
I'm MUCH more interested in buying stocks now that they are cheap. You can't just sit on cash waiting for the market to drop 10% before you start buying. The best strategy is to start buying in slowly and then gradually increase the pace of buying as the prices continue to drop. Cash isn't king at all in this era
First wow what an amazing insight! AND I love the editing on this video! Great fonts and extra photos etc. So helpful!
Hey Rachel 👋 I’m thinking about making a video on this. Let me know if that’d be helpful.
P.S. If you have any questions about starting & growing your Airbnb business lmk.
This was a great video! Thank you so much for the detailed breakdown!
Love these videos Shelby! You’re such a unique channel with great transparency. This is a love project and something you will enjoy when you retire one day.
This is so cool. Thanks for being so transparent. Currently flipping a house so this content is very appropriate. You’re one of my faves!
Hey @Evan Donahue 👋 I’m thinking about making a video on this. Let me know if that’d be helpful.
P.S. If you have any questions about starting & growing your Airbnb business lmk.
Great to wake-up on Saturday with a new Shelby video!! Windy as heck here!!
When you project 6-12 years of cash flow, you need to factor in estimated costs for repairs and additional remodeling, I suspect that short-term renters might be "hard" on your decor, Plus every house needs constant repairs. Good luck!!
About the constant repair. That is not really true. Ive had my place for 2 years and only have had to replace 1 lamp.
That's why it is a range. 6 if everything is good. 12 if cost is more. But also no one knows if the market gets competitive and the price might need to be lowered.
Hey Shelb. Great video. Love the transparency. This is exactly what I was hoping for when you started this journey. Minor nitpic, you weren't comparing apples to apples when you did cash on cash vs market returns. The former is more akin to yield, vs the latter being total return. That means you're undercounting your racket clubs returns cause the house itself apreciates.
That said, excellent work 👏
another perfect video, as always shelby!
The video I needed. Appreciate this. This is why I’m a subscriber
Such a great video! Love that you're sharing this!
You might just consider selling the house for a huge profit and then going into more rental projects with what you have learned for higher profits. That being said it’s a beautiful home and I wouldn’t want to let go of it lol it’s so pretty! Also I want to install that gate for my house it’s so modern and cool! 😍😍
if she sold this house now she would probably lose between 100k-200k. she bought it for around 800k and put 500k into the remodel. with rising interest rates and selling fees she would be pretty underwater as she spent way too much money on the remodel and furniture. in her recent videos she states that she is getting 1 booking a month on airbnb and losing money during the summer. this house was a horrible investment after the renovations she did. if interest rates keep going up it only going to decrease the value of this home. not to mention people are not booking airbnbs like they were due to all the insane fees.
Rates are nearing the top but will stay higher for longer to wring out the high inflation that fed chief Jerome Powell caused. But this is now a much nicer property because of what Shelby has accomplished. There will always be lazy wealthy people willing to pay for this instant image kind of lifestyle. You rock Shelby
I love that you really broke down the expenses. That’s really cool!
All the appreciation makes it even better. you can always leverage that equity to scale!!
THIS! 🙌🙌
True!!
You also did not include the likely appreciation of the home over the next few years. I'm sure it will add at least 5-10% of the value of the home! Cha ching!!💲💲
Amazing video Shelby! Very cool to see the numbers broken down and such a big passion project come to life!
Also, you made a profit by making videos about this throughout the two years.
The house has also appreciated in value, by a lot.
And also would you have to pay taxes in the 36,000 profit?
Loved this video‼️ thank you for sharing the project with us🙏🏾💯
Very interesting, Shelby! Thanks for making this! Love following your AirBnB journey!
Shelby, thank you for making this video. Your details are very informative. Please keep them coming😎
Thank you so much for your transparency. I'll be sure to follow u now!
Hey @PandoraEast 👋 I’m thinking about making a video on this. Let me know if that’d be helpful.
P.S. If you have any questions about starting & growing your Airbnb business lmk.
I LOVE your videos. Their super informational and we appreciate all of your hard work😊
Great video Shelby!
Definitely an amazing investment!
Thank you for the transparency, it's super cool to get such great insight that some real estate "gurus" would charge for their "courses".
I think one overlooked factor (at least as far as the proposition in this video is concerned) is the appreciation value of the property itself (even without all the renovation improvements).
Your house is most certainly pushing $1M if you were to put it on the market today so the fact that you splurged on some furniture or quality of life things is not a big deal in the long run.
Can't wait for the Joshua Tree project to begin! Let the Church Sisters real estate empire reign supreme! 🏡
Wow amazing video with great, clear detail. Thank you! So happy about your success!!
Do I think it was a good investment? Well, buying and keeping land in CA is ALWAYS a good investment. You can do so much with it...you can rent it w/ long lease or short term rent it or AirBnB it or use it as family vacation home. My husband and I were told that once you buy a house in CA don't sell it (unless buying another housein CA) because land is so valuable here. Great vlog!
Great detail again. Love this
Hey D J 👋 I’m thinking about making a video on this. Let me know if that’d be helpful.
P.S. If you have any questions about starting & growing your Airbnb business lmk.
loved this video!!! love how you presented it in a way that was so easy to understand!
Shelby, thank you for this video! It was definitely a great investment. One thing you need to factor in your numbers is the number of personal stays. By staying there, you are saving on hotel costs so you need to add that to the calculations.
Love this!! So useful and interesting to see 🙂🙂
Hey @styledosage 👋 I’m thinking about making a video on this. Let me know if that’d be helpful.
P.S. If you have any questions about starting & growing your Airbnb business lmk.
Great video - loved the content and all the facts and figures!
Love this video and of course your new T shirt!!! (Coming here from your blog channel)
Btw: indeed this was a great and fun investment!
amazing video!! so informative and love that you break down all the numbers.
Keep crushing it!
The conversational elements you added into this video...? Some of your best yet. Very well done!
Thank you!!
I love watching your commentary videos as well because you do such a good job at also including pictures and other B roll (I learned that term from watching your videos 😆)
Love the videos .. I always enjoy your content
Love that blue top, great choice and very informative video.
Your videos are so well done. Good job!!
Interesting analysis! Looking forward to hearing how the next year pans out!
Thanks for sharing your journey. Best of luck to you and your rental!
I am thinking of getting to Airbnb! Thanks for explaining the cost and I love that you are very genuine and open to share!
This video made Shelby look even more appealing. Love the numbers and the details.
Oh I was hoping for this video!
Thank you for sharing Shelby!!! Looking forward to more videos like this! And the investment was worth it!
This was amazing! I love when you make videos like these :). So much effort and time. Amazing
Also, you're super inspiring
Love the video Shelby!
Another thing to mention for your subscribers, your home is appreciating in value! Also being that you put in some major renovations, the home value is much higher than $750k
You could take that equity and do a cash-out refinance and use that cash to buy another airbnb!
I’m sure you knew this (I learn a ton from you!) but thought your subscribers might like to know this as well :)
Wow! Ok I agree this was a good investment, but having just finished a massive renovation myself, my back hurts looking at all you’ve done lol. Good job. It’s beautiful. And great video. Thanks for sharing.
Great breakdown. Loved this video
We have been on AirBnB for 4 weeks now with our downtown Asheville, NC condo. Already really pleased with the rental activity levels. We do give up 25% of rental income to our Super Host who takes care of everything, pure turn key, which is nice. I can’t believe how easy this was.
How did you find your Airbnb manager?
Thank you Shelby. Such good videos.
Love the angle at which you’re shooting this one in the living room!
Amazing Video. I've learnt so much about real estate from this video alone. Thank you
Shelby you did well...keep up the inspiring videos hopefully I can have my own airbnb rental
Love to see a young person who knows the importance of investing. Good on you Shelby!
You are about the best TH-camr that really breaks things down with your real numbers!
Hey Amanda 👋 I’m thinking about making a video on this. Let me know if that’d be helpful.
P.S. If you have any questions about starting & growing your Airbnb business lmk.
Thank you so so much for sharing all the details like that !
Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for
Investing in stocks is a good idea, a good trading system would puts you through many days of success.
It is also possible to produce superior performance provided you do something different from the majority. However, most of us tend to pay more attention to the shiniest position in the market than to the cost of proper diversification.
The cryptocurrency market is seeing one of its worst selloffs since 2020, sparking panic among investors and raising questions about why crypto prices have been increasingly sensitive to gyrations in the stock market.
@Gadafy Moses That's impressive. Are you giving him your money or it stays in your trading account? how does it works
@Gadafy Moses Please 🙏, how do I get Nura Reiner Carvalho? i would love to trade with him
Shelby you look so vibrant in that shade of blue!! :)
Great info. I’m setting up an out of the country Airbnb, and you brought up some good points that I needed to take in consideration.
Thank you
🔥 I’m with you on this J R! This was a great video!
P.S. If you have any questions about starting & growing your Airbnb business lmk.
Love your content
Really proud of you and appreciate your video breakdown. If I could give a million thumbs up, I would. Great job!!!!
Very interesting!! Do you all have a pool cover? Those are an easy way to cut back on pool heating expenses. Would def recommend 🏊♀️ ! Love your videos!
I THINK ITS A BEAUTIFULL HOUSE WHERE YOU GET TO RENT IT OUT AND ALSO ENJOY YOURSELEVES, YOU GUYS DID AMAZEING ON THE RENOVATION AND IT LOOKS AWSOME XXXX
maybe also talk about how much worth the house is now compared to when you bought it
I like seeing the TCO and ROI breakdown.
Sometimes you just have to go for what you want and trust everything will work out! I think you made a great investment!
Agree its called "good risk " I guess esp if you take yr time to plan thgs accurately!!
Shelby I love seeing the calculations of everything! It’s so interesting seeing an airbnb in Palm Springs compared to my airbnb in Tennessee. Love the video!!!
I have really enjoyed following along on this entire AirBNB project and this was great to finish it off the project!
imagine all the money u made from all those amazing videos u made documenting the process! i think that's amazinggggg and u prob got so many subs too
Considering the the current Palm Springs real estate market, I wonder how tempting it is to just flip the place for a HUGE profit?
Probably tempting, but unless you flip it into a 1031 exchange and buy more investment properties, you will pay Uber taxes.
it wouldn't be a huge profit - if the house is a 1 million (maybe) 892k invested in capital cost and price of the home - so after realtor fees 5% or $50k profit would be around $58k split between two people - not a huge profit
Shelby, have you ever thought about putting in solar just for the pool heat? To offset that cost completely? I’m just wondering if you ever thought about it. It might save you some money in the long run.
Omg...Shelby calculated all that up. I was thinking who did she get to get all this together! LOL. Very impressive!
You got this boo, this investment property can be evened out with other investments. You got this!!! 🙏
Great Content
good job ! a lot of math and money. your effort and your time.
I hope real estates worth it! Thank you!
Your courage to be so transparent is so inspiring. Wish I had the balls :'D
Hey @Chili Cheesecake Films 👋 I’m thinking about making a video on this. Let me know if that’d be helpful.
P.S. If you have any questions about starting & growing your Airbnb business lmk.
I love this transparent videos
Very informative video. Thanks for doing all that math Shelby!
Most people with vacation homes that rent them out and also use them are pretty happy with any profit. The value of the house after renovation and then yearly appreciation will be the big pay day when you eventually sell it for over $2 million.