How Much Do You Actually Profit Per Month (Net) On 1 Airbnb Property?

Question

HOW MUCH DO YOU ACTUALLY PROFIT PER MONTH (NET) ON 1 AIRBNB PROPERTY?

I keep doing the numbers on properties purchase price of 800k-1.1m and monthly profit after management fee, mortgage, etc comes out to be on the lows $500-1000

any tips?

William Kissane · Answer

It's not easy with interest rates where they are currently, mix in the insane insurance premiums, management fees, cleaning fees, general maintenance, and margins are pretty skinny for most I would say. I just ran numbers on one of my properties, rev was 65k and we profited 5k by EOY. We reinvested a lot back into the property the 1st year on various small improvements, so this was to be expected. This is a self-managed property as well. Which leads me to my next point, self-manage the property if you can. This will help with your bottom line, now I know this is not feasible for everyone but if you can, no one will care for your property or business quite like you will.

Feel free to drop me a message if you have any questions.

Benjamin Aaker · Answer

There is a lot to it, so it's going to be an 'it depends' kind of answer. Often short term rentals are marketed to vacationers and investors often look for vacation destinations to purchase. Right now, they are selling for very high retail values. These are difficult to make good cash flow with any business model. Your best bet is to look for properties that aren't so high value, for instance, near hospitals and cater to healthcare workers. Or, consider multiple short term properties near one another and negotiate with management for a better price.