Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
Greetings BP
I have been looking at AIRBNB. Has anyone been able to scale an AIRBNB business? There has been a lot of chatter on BP about it. I am interested in hearing from anyone whose is doing it in scale and making money 5+ units.
I have seen a lot of XLS that at 50% rental you are $xxx profitable. What is the reality of those assumptions? You have all the traditional costs of owning RE, roof, plumbing, electric. Additionally, you have a complete house full of furnishings. Taken one step further instead of having one tenant you have 50 in a year?
It seems to me that you would have to do it full time to effectively manage it. Using a management company could be tough or really expensive.
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
I made $0.00 this year from Airbnb or any other vacation website. But I've had about 75% occupancy on average with my STRs. Sometimes it's 50-60 percent. Other times it's 90-100 percent. So it averages around 75%.
My renters are refinery contractors. Welders, pipefitters, boilermakers, electricians and the like. Big burly scary looking guys with neck tats that drive jacked up 4x4s. They smell like diesel fuel and chew tobacco in their sleep. You'd avoid the Wal Mart aisle if you saw one there. I'd punch him in the arm and say "What's up mofo?" If he saw me in a bar, he'd send the waitress with the most cleavage over to my table to deliver a round of drinks. I decorate my STRs like Hugh Hefner would decorate his own place.
Craigslist, word of mouth and repeat customers are how most of my places get rented. 23 STRs, 83 beds. All are 3-8 minutes away from my house, I self manage. It's a full time job. My part time job is working at a medical clinic doing pre-employment drug screens for contractors coming here to work at the refinery, a good way to meet potential tenants My wife keeps the STRs clean, that's her full time occupation.
Investor · Greer, SC · Member since 2014 · 13k+ posts · 17k+ votes
7y
I am not making any money with Airbnb, but I am making money with VRBO as I have a true lake front vacation rental. Vrbo and Airbnb give you the tools to easily manage a STR from your phone. @Luke Carl manages 5 STR's remotely from his phone.
I have been looking at AIRBNB. Has anyone been able to scale an AIRBNB business? There has been a lot of chatter on BP about it. I am interested in hearing from anyone whose is doing it in scale and making money 5+ units.
I have seen a lot of XLS that at 50% rental you are $xxx profitable. What is the reality of those assumptions? You have all the traditional costs of owning RE, roof, plumbing, electric. Additionally, you have a complete house full of furnishings. Taken one step further instead of having one tenant you have 50 in a year?
It seems to me that you would have to do it full time to effectively manage it. Using a management company could be tough or really expensive.
I am! Totally scalable. Just need a VACATION market not an urban market
Investor · The worst town to live in, KS · Member since 2016 · 4k+ posts · 4k+ votes
7y
I made $0.00 this year from Airbnb or any other vacation website. But I've had about 75% occupancy on average with my STRs. Sometimes it's 50-60 percent. Other times it's 90-100 percent. So it averages around 75%.
My renters are refinery contractors. Welders, pipefitters, boilermakers, electricians and the like. Big burly scary looking guys with neck tats that drive jacked up 4x4s. They smell like diesel fuel and chew tobacco in their sleep. You'd avoid the Wal Mart aisle if you saw one there. I'd punch him in the arm and say "What's up mofo?" If he saw me in a bar, he'd send the waitress with the most cleavage over to my table to deliver a round of drinks. I decorate my STRs like Hugh Hefner would decorate his own place.
Craigslist, word of mouth and repeat customers are how most of my places get rented. 23 STRs, 83 beds. All are 3-8 minutes away from my house, I self manage. It's a full time job. My part time job is working at a medical clinic doing pre-employment drug screens for contractors coming here to work at the refinery, a good way to meet potential tenants My wife keeps the STRs clean, that's her full time occupation.
Real Estate Broker · Hyde Park Tampa, FL · Member since 2019 · 2k+ posts · 3k+ votes
7y
One of my clients is purchasing a triplex property in a beach town (across the street from beach) that has confirmed/vetted AirBnb bookings in excess of $100k YTD. It is estimated to earn another $30K by year-end. Another client rents out his stunning pool house overlooking saltwater pool/spa in an area of Tampa known for it's bars/restaurants via AirBnb and has been successful in attracting an average stay of 4 days at $140 nightly.
The location is the driver of revenue. It remains highly restrictive in most vacation destinations here in Florida due to our strong hospitality industry. In comparison to long time rental returns, it is double or higher even in high rent markets.
Real Estate Agent · Sevierville, TN · Member since 2015 · 1k+ posts · 1k+ votes
7y
@Lesley Resnick I reached financial freedom in under 2 years with 4 vacation rentals that I remotely self-manage. Like @Luke Carl said, you need a vacation market, not an urban market, but it's completely doable and the cash flow can be insane. Bonus, all of my properties have appreciated significantly as well, though that was not part of my strategy.
Hatfield, PA · Member since 2012 · 1k+ posts · 629 votes
7y
"We tried Airbnb in an urban area but not a ton of luck as the competition was fierce"
In a few years, this will be the reality in most of the country. Wait until the big corporations go all in and watch your occupancy plunge and rates halve.
Rental Property Investor · Fleming Island, FL · Member since 2017 · 202 posts · 132 votes
7y
@Lesley Resnick I own 7 Airbnbs here in Jax. I've been doing it for 1 year and it's very profitable. These are primarily Westside houses with an average price of $150k. We try to cater to blue collar workers coming to Jax for projects and supplement the bookings with the platforms (Airbnb/VRBO). I buy the properties for cash and then cash-out refi with 30 year loan products in the 5-7% rate at 70% LTV.
Feel free to reach out if you would like to get together to discuss further.
Contractor · Seattle, WA · Member since 2019 · 339 posts · 325 votes
6y
@Lesley Resnick while everyone is saying that AirB&Bs in urban markets don’t work, people are making money in Seattle by renting out their homes on AirBnB. People rent them when they come to town to visit for weddings, business, etc
Rental Property Investor · Denver, CO · Member since 2015 · 105 posts · 22 votes
6y
@Lesley Resnick Definitely. I was managing 6 Airbnbs. Making 7 G'S a month in Denver. the str license changed and I'm down to one now. So make sure you get your str license and look up the str laws in the city. Denver you can only have one str. And it has to be your primary residence. I'm looking to get more in other city's.
I just got my first listing short term rental listing up and got 7 requests for booking in 36 hours and have the property ranking on the second SERP. Looking to grab more properties and scale!
Rental Property Investor · La Quinta, CA · Member since 2014 · 1k+ posts · 779 votes
6y
We have approx. 1,500 tenants a year per property (75 or so rental groups per year, average group size of 20 or so). No problem making good money including all costs (incluing property management).
Rental Property Investor · Ithaca, NY · Member since 2015 · 1k+ posts · 1k+ votes
6y
@Lesley Resnick
I’m rehabbing a 4 unit into an AirBNB then I’m renting out the other side of my duplex as an AirBNB too...so I think that’s 5. I’m going to be full time management and I might hire a cleaning person. Definitely going to be worth it if I can get everything fixed up!
Investor · United States · Member since 2018 · 565 posts · 356 votes
6y
You can make lots of money with Airbnb and other short term rental platforms. I suggest you do it. If you can be profitable at 50% occupancy then your property will do quite well.
@Lesley Resnick I own 7 Airbnbs here in Jax. I've been doing it for 1 year and it's very profitable. These are primarily Westside houses with an average price of $150k. We try to cater to blue collar workers coming to Jax for projects and supplement the bookings with the platforms (Airbnb/VRBO). I buy the properties for cash and then cash-out refi with 30 year loan products in the 5-7% rate at 70% LTV.
Feel free to reach out if you would like to get together to discuss further.
Hope this helps.
Glen
Sounds like you have it dialed in. I will PM you, I am interested in hearing more. I have a few properties on the west side.
Real Estate Agent · Jacksonville, FL · Member since 2015 · 1k+ posts · 1k+ votes
6y
This thread has been really helpful. Thank you all. So it is overwhelming at 50% occupancy there is money to be made.
The part I am still struggling with is the management. I would not want to do it myself. I am busy working with other investors and running my own investments. It would be tricky to start building out a large enough short term rental portfolio.
Seems like all the little tasks would eat up a lot of time
Cleaning
Inspecting the unit for damage
Check in check out, Keys
Is anyone leveraging technology to mange their properties?
Rental Property Investor · Denver, CO · Member since 2017 · 200 posts · 126 votes
6y
@Lesley Resnick I own 6 units and self manage mainly on Airbnb. I also manage an additional 3 for other folks. I average about 65-70% occupancy in steamboat springs, CO. I use technology to help with auto responders and the like. You don’t need to meet guests with keys anymore. I use keypad locks. I am a full time fire fighter and have a 10 month old daughter on top of all this.
It can all be done with the right systems in place. If you are thinking about self managing or want some tips on finding a management company, happy to help. Feel free to message me and we can connect on the phone. I have been producing some webinars to help people get up and running and would love to chat with you about your plans.