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Updated over 2 years ago on . Most recent reply

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Julio Ochoa
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8
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The power of build-to-rent Airbnb for building wealth

Julio Ochoa
Posted

Hello everyone! I'd like to discuss with you the strategy of newly built fourplexes for Airbnb purposes. 

Using Airbnb in the right area can 2x-3x the income of that rental property.

To make Airbnb work, your property should be in a populated/traveled area. For development you will be finding land in such areas. 

A few of these properties can retire a whole family, and this is where my passion lies for real estate. 

The strategy is to 

Buy land -> Build Housing -> Rent it out on Airbnb -> Refinance the property -> Repeat/Reinvest

This means you are

- Avoiding expensive & strict commercial codes (5+ units)

- Buying land in an area where your product is highly demanded

- Adding tremendous value to the property by turning it from dirt to brand new housing

- 2x-3xing the income of the property by using a short-term & vacation rental model such as Airbnb

- Refinancing so that your capital is not stuck in a property, allowing it to be reinvested & grow faster

- Building wealth and passive income for yourself and/or others 

If you have any questions or would like to discuss, leave a reply or send me a message 

Thanks for reading!

Most Popular Reply

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Michael Baum
#2 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
6,793
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8,081
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Michael Baum
#2 Short-Term & Vacation Rental Discussions Contributor
  • Olympia, WA
Replied

Exactly what @Leslie Anne Morris said. I would be interested in reading how many times you have done it and the numbers.

Personally I am a bit dubious about 4 plex vacation rentals or STR in general. You kind of get the worst of both worlds. A condo experience without the amenities nor do you get the privacy of a SFH.

Not saying it wouldn't work, but I would like to see some actual numbers.

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