$8.4/Month with STR with Tiny house in Joshua Tree
Nice article about about an investor that followed @Robert Abasolo foot steps and built a tiny house in Joshua Tree and is cash flowing $8.4k/month. They even moved in with their parents and still kept the W2 job to save on more to buy more properties. That is determination!
Good for them . . . . However you have to wonder how long the gravy train will last in that area. Seems to be getting pretty saturated.
Like when you overhear taxi drivers and bro gyms talking about an investment, it’s usually the beginning of the end.
I think they will be okay in the event of a downturn, their overhead is only $1100 per month.
So awesome. I agree tho J tree in particular is very over saturated. I found 800 listings avail to book the other night. 800! In comparison my area of Tahoe has 300 listings total and is a much larger multi seasonal location. I do think some areas will tamp down and J tree is on that list . note* i have ten str's and started in '14 so I have a very conservative approach* Cat's out of the bag on Airbnb we need to keep finding the next thing imo
Quote from @Ariel G.:
I think they will be okay in the event of a downturn, their overhead is only $1100 per month.
Of course, as long as they don’t base their lifestyle and retirement on it
I love the story, but I think there is some creative accounting being done here to make this look better than it is. The $1100/mo for his loans and PM fee sounds pretty dubious. It says he has $165k in loans for the down payment alone via personal loan, bitcoin backed loans, and a heloc. I'm a crypto guy, those bitcoin backed loans are not cheap.
Also worth noting that $1100/mo it looks like only includes the loans (still seems dubious it would cover even that) and PM fee. Not utilities, homeowner's insurance, property taxes, software, platform fees, etc. So saying his total expenses are $1100 while not adding in all that stuff again is misleading.
Also worth noting that he paid about 60% of the cost in cash (drained his entire retirement accounts). Not too terribly difficult to cashflow well when you're essentially putting 60% down.
Still sounds like a good deal overall for him though.
I've spoken to Rob - he could easily sell that home for 500k today and pocket 300k+ in profits, but he told me he doesn't want to because of personal reasons - its his first major creation and he wants to keep it. Plus, it does amazing on Airbnb. @Zambricki Li you're looking at the worst month in JT - the summer times are incredibly slow. But if you look in Feb/March, you'd see less listings. I think the market definitely had a huge spike in Airbnbs the past two years, but unique and awesome homes still do well in JT. Its the 50% percentile homes that will suffer when things get slower in my opinion.