The 5 Steps to Making Short-Term Rental Millions (Part 1)
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- เผยแพร่เมื่อ 24 ก.ค. 2024
- Short-term rentals have taken the world by storm. Over the past two decades, the bed and breakfast type business has fallen prey to the more scalable short-term rental model. Real estate investors quickly realized that they could capitalize on the long-term equity gain of rental properties with the cash flow of hotels in one highly-lucrative asset class. Thus, the rise of the short-term rental, VRBO, and Airbnb investor was born.
Arguably the most notable short-term rental investor in the space today is good friend of the show, Rob Abasolo. Rob is such a pioneer in the short-term rental investing area, that veteran agent, broker, and investor David Greene, has partnered up with him to collectively build their cash-flowing, equity-increasing empire together. With dozens of deals under both of their belts, Rob and David walk through the five steps that it takes to find success in the short-term rental space.
This episode is split up into two sections, with the latter coming out right after this one. In this show, Rob dives deep into finding a short-term rental market that fits your needs and goals, choosing a location that specifically benefits you as the investor, the different types of short-term rentals, and how to build a vacation rental strategy that will match your goals for financial independence. Whether you’re thinking of buying a snowy chateau or a desert domicile, Rob and David will help you put the pieces together so you can build a strong portfolio that will benefit you for decades to come.
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Sign Up for BiggerPockets Events Like Short-Term Rental Bootcamps:
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It's Not Too Late to Join the Short-Term Rental Investing Game:
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How to Analyze a Short-Term Rental Before Buying:
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Subscribe to David’s TH-cam Channel:
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Watch Rob’s Video “This is exactly how much your property will make on Airbnb”:
• This is exactly how mu...
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Follow David on Instagram:
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Episode 578
Show notes at: www.biggerpockets.com/show578...
0:00 Intro
3:54 Step 1: Choosing a Short-Term Rental Market
11:41 Cash Flow vs. Appreciation
16:34 Step 2: Choosing Your Location
22:20 Out-of-State Investing vs. Local Investing
26:14 The 4 Short-Term Rental Categories
33:34 Vendor Availability, Competition, and Market Growth
37:14 Vacation Rental Seasonality
40:44 Step 3: Short-Term Rental Strategies
43:38 The Time Commitment of Running Vacation Rentals
46:56 How Much Risk (and Growth) Can You Handle?
50:10 Remodeling Your STR
53:59 Outro
Literally to the 1% whos reading this, God bless you, and may your dreams come true, stay safe and have a wonderful day. 💕
I subbed cuz u seem cool
Got you 🤙
And back at you!
Thank you! I wish the same for you ❤
Suck it
Rob and David are bringing it! Thank you for sharing in this podcast
Thanks for this video, Rob and David! Super excited for the rest of the series. One question - how do you think the increase in interest for second home loans in April will affect the market? Will less people be buying second homes? Will it ruin the returns on most properties? Will we see more properties on the market? Thanks!
You two are the funniest; and this is SUCH a timely, concrete video for me. Thank you both!
Robuilt + BiggerPockets?? Is this some multiverse crossover we have here? Damnnnn this is quality content👏🏻👏🏻
Love this duo. Rob is great!
David and Rob, thanks for sharing your knowledge! David, your quote and thought about “having a relationship with real estate” was a great nugget. Rob, very cool seeing you now co-hosting BP. Congrats! Great content guys!
Awesome video guys. I really needed to hear this. 33:30
I'm trying to buy our first STR in Blue Ridge. It's been stressful to say the least. Thanks again for the content.
Did you ever buy it and how's it doing? Love that area.
Thx for the great info and advice!
Can’t wait for part 2!
Informative way to start thinking about investment properties, looking forward to part 2!
This was really awesome.
Question: I am in Canada looking at REALLY EXPENSIVE markets that I can buy a primary residence property in.
The Airbnb nightly rates I see for other properties in the area will not carry all of my expenses.
Should I move on or am I doing the wrong type of analysis?
Move on
Thank you for the very informative video!! How do you research the short term rental laws in the town that you're interested in? I am finding the process confusing and not clear cut information online.
Great video, I would love to get on the next str video. I was able to grow my str business to 890 units in 2 years
Great episodes, your guys are great team.
Loved this episode!
Very helpful!
Hello there i am a little bit confused i would like to rent two houses in City of Denver but they only allowed to rent your primary residence how do i go around it ?
Cool grunt style tshirt and thanks for the vid
Great show!
You guys are awesome, thanks for sharing your experience and insights.
I am going to need to take Bigger Pockets classes-so confusing between F. Peace U, Lifestyle Unlimited, Bigger P., etc...Anyway, my plan is to find land with a duplex or home on it and create affordable senior housing. Seniors are getting CRUSHED by the active senior communities, which charge upwards of 3000 and raise rent 5% or more after they are already in, and bonded with new friends. It's rough for them when they are on fixed incomes. I'd like to do a space where each has a tiny home, a little fencesd area, and allow pets. Any suggestions on grants?
This is awesome
New to this channel, so is air b an b easie to run then actually having tenants and is it more profitable ? Do u have a video on this , I want to purchase a second property to rent 🔥content
How to decide if you want to do airbnb or corporate rental? How to start in corporate rentals?
Rob is the GREATEST EVER IN THE WORLD!!!!!!!!
Let go round two!!
thanks so much for great content!
Loved the episode!!!!
Looking forward to the next episodes
Good to finally see you on here brother.
Wow, amazing video, I hope this will reach to a lot of viewers.
So from a scaling perspective - I understand the importance of getting good appreciation and then using that as a way to invest in a few properties. Do you think it makes more sense to sell those high appreciating properties or to take a heloc out against it and reinvest? Great content guys!
I'm in a similar situation, young and growing with a couple rentals under my belt but looking to scale. From what I understand, there's not a right or wrong answer. It's dependant on your portfolio and what suits you best.
Some things I'm looking at to help my decision are;
1. Appreciation of houses I own - does the market have potential for appreciation to keep increasing or is the market somewhat capped for location and geographical reasons?
2. What my next investment is gonna be - am I gonna be able to see a return quickly if I do take out a heloc? Or if the return is slow am I gonna be stuck paying back the heloc for longer than I want to be, ultimately slowing me down?
3. Does it make more sense to take a heloc or use a 1031 exchange to fund my next property? - both have their pros and cons. If I think my market appreciation is limited, and I find a deal in an area where the market appreciation could be higher, I might consider the 1031 exchange route. But, if my market has high upside appreciation potential and I find a deal I can start off with a quick and solid return, I might look at getting a heloc.
I also recommend going to a lender and finding what you can get on a heloc. The more ready you are for each decision, the easier it will be when it comes time to make the decision of what's best for you.
Hope this helps!
Scaling is our 🍞 and 🧈
Hi David and Rob, I’m so happy you guys found each other, looking forwards to continue listening to your show!!!
I have an question I hope you could bring up on your show. INSURANCE!!!! Long term insurance no problems! But when it comes to short term, what do short term rental owner do. I’ve been looking for a month now! Tried so much, is it super expensive to insure ST? I have only found one so far and the quote I got was $7500/year. Is that normal? It double the owner occupied, 3 times long term rental.
What What, please help me. 🙏🏻
There is a policy the vacation renter buys for $35 dollars that covers damages caused by them.
I have insurance through Foremost insurance for both of my STRs
Love this series.... Rob is awesome!
Rob is the man
What is a good cash on cash return??
Do Temecula, california a good area. Wine country!
How do you feel about buying land with seller-financing if you want to do glamping?
I just bought one with seller finance in Oklahoma. As long the there's no restrictions.
I was just in Julian for a month in an air bnb. I so want to have a place there and it will blow the one i was in away.
San Diego has a new ordinance for STR’s beginning Jan 1st 2023. Only 1% of all properties can be STR’s except the Mission Beach area. And for the 1% those people have to enter a lotto. Unless it’s their personal home. This kills a lot of AirBnB in San Diego.
How do we find contractors who are honest in/out of state?
Speaking of short term rentals, can anyone help me out in the Sacramento, Yuba City, Lincoln Area???
Love this. I just bought my first house-hack and have booked 58% of my mortgage for the year in just 33 days! **thanks robuilt for the inspo** I want to scale and get into another property, but concerned i wont be able to secure financing considering my W2 income and how large and recent this mortgage is. Any advice on what kind of loan I should look for?
List the bookings from your first property as income
Hard money loan and BRRR method.
I now have my credentials for running a STR management company. Now how do I find clients willing to hire me to manage their property? I have told a few people that I know and they said they would let other know but the word isn't getting to the right ears.
David. DAVID. Who manages your podcast equipment? You are clipping terribly.
Making a note for Task Grab 21:08
He is the permanent cohost? Because I will finally subscribe to my first podcast of all time if that's the case!
I heard that the 3rd category of people opting for a short term rental are those traveling for business, but how many business travelers actually get a Airbnb? I picture most of those staying in hotels. I live in St Louis which is not a tourist destination but I just can’t imagine the market for Airbnb would be very large…
Well said, delayed gratification
I nominate this guy as the new co host.
Wow this did not age well... Where is the "surge" of people booking airbnbs. This the worst 6 mo I had had in booking since I started in 2011.
One of my favorite podcasts from BP so far! You guys give such practical, step by step advice that really helps us newbies. We're currently putting together our 3rd STR, but I've already got my eyes on where to buy the next one. Listening to this wealth of information from you two experts is exactly what I need to steer me in the best direction! Keep it going, David and Rob!
Really hope bigger pockets allows Rob to take Brandon’s place on the podcast
I hope not. He's too goofy and inexperienced in my opinion.
I refuse to sell because of the paperwork/time burn head aches
Fantastic replacement for Brandon Turner. Rob is very animated, just like Brandon.
What's up with all these bots in the comments section BP?
Jordan Peterson 12 Rules for Life!
Jordan Peterson? Cringe