Hey Youtube. so I posted this video six months ago titled how I make a fortune on
Airbnb while owning no property. you know just putting my two cents into the
world my own opinion based on my personal Airbnb experiences and then
boom all of a sudden you've all taken way more interest in this video than
ever expected and this little YouTube channel is all of a sudden busier than
ever because you're all looking for answers so some of these comments from
new subscribers are like you know this is BS I don't believe it it's not
possible you know you can't do this legally you get the point so I did
something special for you I made a video that shows you exactly how I do this
legally if you want to watch the video stay tuned to the end of this one I just
recommend it you can click on the link there of course but you know the proof
is in the pudding right yeah so take a look at this
I made $70,000 in the month of April what's even crazier is April is my
birthday month I was on vacation almost the entire time I went to beautiful
places like Istanbul I went to Prague the Croatian countryside Islands in
Croatia like core chula and then lastly to belgrade serbia my family's home
country so I got back May 5th this means I made almost 70 thousand dollars while
on vacation using the exact same strategy that I've been talking about in
this YouTube channel for almost six months the rest of this video is my gift
to you I'm going to show you exactly how much money you should expect to keep
take home as net income when running an Airbnb business like mine obviously you
can't keep all $70,000 because there's bills to pay so let's break it down
before you share my screen with you I need to ask you one favor and I promise
I'll return that favor really quickly see I need you below this video there's
a red button click on it it says subscribe become a subscriber and then
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your video is ready ok so welcome to the family thank you for subscribing now
let's jump into the screencast what I'm going to do is I'm going to start by
showing you the progress section of my Airbnb profile and we're gonna go from
there so this year you've seen that we have so far in the first six months 311
thousand dollars in revenue the entire of the Year last year 360,000 and a year
before that 135,000 this was when I started to get serious February this
year was the year that the Super Bowl happened and we decided to jump on it
right so that's when we really started taking this seriously because you'll see
that in you know September October November we started to scale up we had a
first like we had like our first real month over $10,000 in September and we
took off and that's 2016 so it's been about a year and a half of just solid
dedicated growth to this business and in the last six months since October we've
more than doubled our revenue this is huge growth for any business okay now
the way that we pull this off is by effectively managing our calendar we
have so many properties in Houston that we're competing with ourselves now so
you have to find a way to keep your occupancy as close to 100% as possible
while also collecting a good rate we've got tons of video content on this
already and the plenty of you've seen it already but we're not going to jump on
how to do that because you can just watch it on those but I will give you
something for free that we haven't shown in a video yet and it's about the
property we're in right now I'm sitting in our only three-bedroom property we
listed this three-bedroom property about a month ago just right before my
vacation and we have experienced something that's kind of like a hard
lesson see we have seven beds in this property we advertise that we can save
14 people in this property now that's great and all but groups of 12 plus they
don't book last-minute they plan ahead so when we listed this property you know
of course we're expecting to have like a good first month or whatever but we
didn't understand what we got ourselves into and we're getting our bookings like
we're getting four to six hundred dollars a night on this property but
those bookings are for end of June and July right when we set this property up
into April right so if you're looking at it that way people are going to book
your three-bedroom but they're going to book at two or three months ahead of
time which means that for the first couple of months we need to discount
your rates a lot just like it's a one-bedroom or two-bedroom because the
people that you want to stay in your three-bedroom are already staying
somewhere else okay so my point is if you're going to start an Airbnb business
your first property probably if you're strapped for cash right if you can't
this out and you need the money back right away your first property should be
a studio or one-bedroom I'm you get your money back a lot faster overall
profitability this one is going to crush but of course we've gotta wait a few
months now this is a point for renting as opposed to buying a property too
because if you are going to leverage yourself financially and try to pick up
a property and you're only gonna have one you want to pick up the most
profitable property out there which on Airbnb is like a four or five bedroom
luxury property that's where you make all of your money are these big sexy
properties but it costs a lot of money to furnish and to finance and if you
cannot wait three months for money to come back in you shouldn't be buying a
property to Airbnb right it's just a lot safer to pick up some small stuff and
start to scale once you can bankroll it sure go buy a mega mansion and do it but
again it's safer to rent upfront hands down that's how we built our business
trust me now let's look at the actual numbers
so our rents for twenty one active properties is thirty two thousand five
hundred and seventy four dollars and a penny and our electric costs are about
50 bucks on average and the reason why is we have a corporate electric account
because we have so many leases were able to negotiate down our prices now our
cleaning costs this is another huge win normally you pay forty five fifty five
dollars an hour for a cleaner right that's when I first started that's what
I was paying but as we get any more properties we nose for spending way too
much money on cleaning it was a stupid so now we hired her own cleaners and we
pay them by the hour and we give them like 40 or 50 hours a week in cleaning
each right so happy so our cleaning costs are weighted cleaning costs per
week that's our Studios one beds two bedrooms and this three-bedroom $60 per
unit a week average that is insanely cheap right that's as if we're spending
an hour and a half in each property each week which is not true we've got people
are staying you know one or two nights at a time so we made a clean the same
property four or five times in a week right so the $60 per week is a huge cost
reduction so I recommend when you scale your business hire your own cleaners
that will save you a ton of money so Internet we we like Xfinity because it's
cheaper than 18t but of course results may vary based on where you stay
who your providers are now insurances we only need renter's insurance when
combined with Airbnb insurance both of them together sufficient now if you're
going to rent off of Airbnb like home away you're gonna do direct bookings you
should get extra policies there are policies geared towards short term
renters and you can get a corporate liability policy which some buildings
may require that you get short term renters insurance can be as much as a
$200 a month for one property which is kind of expensive and a corporate
liability policy to protect your company it's probably somewhere between 750 and
950 dollars a year okay but for our properties since we're only air being
being right now we just pay our nine dollars per month to lemonade calm super
cheap and it's wonderful so not a big cost
now losses here's something for you take one percent of your revenue and save it
away for risk one percent of revenue saved for risk because you don't know
what's gonna happen somebody could break or steal a TV somebody could wreck a
carpet on you might need to do carpet cleaning like like because of that you
know just unexpectedly you have to clean a bunch of carpet a bed frame might
break there's all sorts of stuff that can happen and if you don't have that
money stored away you could run out of cash and number-one rule of business is
never run out of cash so one percent for risk is accounted for here and that
brings our total costs to forty one thousand six hundred and seventeen
dollars and a penny per month in costs our revenue is just over sixty nine
thousand dollars our total net profit twenty seven thousand four hundred
eighty two dollars and ninety nine cents that's absolutely outstanding it's just
so juicy but I know that some of you have watches channel a lot and you're
gonna say well shown you have a property manager that runs your properties this
is true I don't work any more on this if I don't have to I mean I could just let
it run and Katherine does it for a cat and she likes to get called does a
killer job of handling her part of the business now if you
consider what you could pay a full-blown property manager like let's you hire
somebody who's already been a property manager you could be spending $2,500 to
$4,000 a month on that person okay it depends on how many properties are
taking on and what market you're in and how expensive people are for positions
like this so let's factor that in and now we're looking at twenty four
thousand to twenty five thousand dollars in profit but your revenue is just under
seventy thousand dollars and your profits almost twenty five thousand
dollars that's a huge margin you're in love with that margin right Warren
Buffett would be happy with that margin guys so let's let's just break it down
one last time rent your property right start with the
studio start with two Studios clean them on your own get familiar with the
business you don't need a lot of money to get in and grow your business from
there once you have enough properties like us we're picking up ten more
properties in Dallas in a couple of weeks and we're hoping to have our first
hundred thousand dollar month in July okay
we're shooting for it now after that yes we're gonna start buying property of
course well when you have way too much money and you can't grow as quickly as
the revenues coming in there's a point where if you just can't grow with your
money then switch your model up so we can start dumping more of a money into
equity because we can only pick up so many properties so quickly anyway it's
kind of hard working at that um we may do it after this ten in Dallas but I
have a feeling we're gonna do a Florida expansion we're probably gonna end up
between 50 and 60 leases before we buy our first property if I'm going to see
the future and know myself this is another big thing about businesses you
need to know yourself where you're strong where you're weak don't lie to
yourself and if you're not good at something find a business partner just
you know it's got to be that way sometimes
so speaking of share this video with anybody that you think you'd like to
Airbnb with and start looking at you know being an Airbnb host um you won't
be upset that you did so again subscribe ask me for more content and let's uh
let's get down into it let me show you how to be an Airbnb host the rest of the
way watch the rest of the videos on this channel if you haven't thank you for
watching everything be automated and I will see you on the other side