The Tried and True Pathway to Five Airbnbs in Five Years

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  • Justin Moore
    Member since 2023 · 1 post · 0 votes
    1y

    Awesome article and we are trying to follow this path! Any insights on how to structure a deal where one brings the money and we bring the design , set up and operations?

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    • Garrett BrownPro Member
      Rental Property Investor · Houston, TX · Member since 2024 · 518 posts · 555 votes
      1y

      Thank you Justin! I'm glad you enjoyed it. The cool (and tough) thing about partnerships is they are all negotiable. I have done (and seen others) do something like 50/50 for that type of situation. I have also seen things like 70/30. It really comes down to a few things, I'd say. How much money are we talking? How much work is really involved on your end? Are you buying a simple rental or building out a full micro resort from scratch?

      It's all relative to the situation. My first partnership was a straight 50/50 split. I brought about 40k to it and all of the setup. My partner brought around $150k but didn't do a lot after (which I knew going into it). I manage it now and take a salary from the tiny home village now. We paid back our debts and they own 50% of it. We have doubled the value in 4 years through my operations and assets we have added.

      My advice is think of a few ways to structure it and talk with the money partner. Partners can be tough but being straight up and having the difficult chats make it easier in the long run. Feel free to message me on my profile if you want to chat more!

      [email protected]
      BiggerPockets
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  • BiggerPockets TeamPro Member
    OP
    Member since 2026 · 14k+ posts · 5 votes
    1y

    Nice article and very motivating, but also, very speculative. I wont go into how we got our start but it was one rental at a time and began in the 1980's. When the STR craze hit we were already knee deep into rentals and frankly were bored. We decided to move into two beach and one mountain STR, except we called them vacation rentals. For another twenty years we managed both STR's and month to month at the same time. That sums up our background and experience on this subject.

    We were there when vrbo started and airbnb too, we watched dozens of websites get gobbled up, our own included. Computer reviews, State, County and City regulations wreaked havoc on our STR profits and created stressful headaches to the point we no longer were willing to stay in the business. So after twenty years we retired and went back to only long term rentals.

    What newcomers don't understand is that STR's do indeed return more than month to month rentals, but it comes at a price, it is a job, it takes lots of time and is plain old work. If a person's goal is to become wealthy through real estate, then they need to own the real estate and being a landlord allows the property to pay for itself. However, it is a misnomer to think being a STR landlord is some sort of path to riches. It is simply a job, and not even a well paying job.

    Originally posted by T-John.

    BiggerPockets
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