$2,000,000 investing in Airbnb rentals

  Do you need help investing in real estate? Do you understand how to grow, scale, and profitably build your company into the business that you want it to be? You’re in luck! I’ve been working for the past several years with some of the most successful real estate investors in the industry and from around the country. Names such as Andy McFarland and Bill Allen, along with myself, have built a program called “Seven Figure Flipping.” This exclusive mastermind and coaching program is designed to get you and your business to the next level. Interested in finding out more? Email me at [email protected] with the subject line “help,” and we’ll get on a call together to see if this program is a good fit for you and your business. In this episode, Amir Dukic joins me to chat about his AirBnb model of investing in which he and his wife have been very successful in implementing. Amir is based in Charlotte, North Carolina, and has a background in IT and engineering. After purchasing his home in Charlotte, he and his wife decided to make the separate dwelling attached to their home into an Air rental. AirBnb’s are more successful in metropolitan markets than traditional vacation home markets. Business and family travelers will often use AirBnb to get a sense of what the neighborhood is like, especially if they are planning to move to the city or town. The types of travelers who utilize AirBnb are looking to get away from the downtown scene, however; they want to be close enough for a short car ride to arrive downtown. Paint the picture of what your property looks like through your description on your account. Highlight the neighborhood and why your potential guests want to stay in your neighborhood at your location. Amir and his wife quickly realized the income from their unit covered the mortgage for their home. They decided to acquire more properties to rent through a master lease model. This removed the barrier of having large amounts of capital to purchase multiple homes. What would happen if the owner of the home wants to sell? Amir and his wife protect themselves with contracts and are strategic about the lease terms and term of leases which they sign. Amir explains how he and his wife scaled their business from one rental at their home to over 70 rentals. Early on, they realized they needed to automate processes as they were performing all the upkeep manually, which used up much of their management time. Amir brought in a partner, James, to build the backend technology to assist them in automating much of what they did in the day-to-day business. A well-performing property is filled 60% to 70% occupancy, at 30% occupancy the property breaks even. Automating their property, especially heating and cooling, reduces the amount of money used to upkeep the properties. Amir also makes sure their property is safe by changing the codes often and giving specific laws to managers and cleaners. Make sure to avoid pitfalls for your AirBnB, such as buying the cheapest Wi-fi and not having hot tubs and other costly amenities. Amir takes out many items they don’t have to have, however,’ laundry is a must. Many people will stay long-term, and a washer and dryer is a necessary amenity. These lead to more issues and higher costs. Focus on purchasing for location. Listen in to find out how to evaluate a house for rental and the rules and guidelines you want to use to determine rent. Find out how to use resources online to assess the amount of rent you can charge at a location. Learn what the aesthetic reasons to purchase or lease a home for rental on AirBnb are. What can you easily replace or redecorate to make your home more appealing? Should your home you rent be a large home, small home? How many bedrooms or bathrooms should you have in your rental home? Where should you start when considering renting on AirBnb? In This Episode: [04:19] Amir talks about his background and how he ventured into the AirBnb model of investing. [06:28] The market where Amir’s first Air is located. What types of markets work for AirBnb? [08:13] Where is the most desirable markets to have an Air? [09:50] How the marketing component plays into filling your Air rental. [10:56] The success of his first Air rental, what Amir learned with his first rental unit. [15:03] Why would someone want to offer their space as a master lease? [17:11] Typical lease terms for a master lease on a property. [20:52] How Amir and his wife scaled their business from one rental to over 70 rentals. [22:22] Rental processes James was able to automate with his program. [26:42] What types of problems can derail and Air rental? [30:42] How should you determine rent for your rental? What is the rule or guideline for charging rent? [31:18] How to pre-evaluate for occupancy of your rental. [33:27] Physical characteristics of the house you want to have when renting out a home. [36:04] How many bedrooms and bathrooms should you look for in a home? [39:11] What about proximity of your rental to a major city in a state? [43:25] How to paint a picture of the surrounding area. [44:13] Bad calls Amir made when securing a property for rent. [45:35] Where to start if you are thinking about running an AirBnb model. Links and Resources Just Start Real Estate on the Web Just Start Real Estate Coaching Get in Touch with Mike at Just Start Real Estate Air DNA Mash Visor Amir’s Rabbu.com Property Management in Charlotte Contact Amir at [email protected]