How I made $70000 ON VACATION | Airbnb Like A PRO | how to make money from airbnb in 2018


Hey Youtube. so I posted this video six months
ago titled how I make a fortune on Airbnb while owning no property. you
know just putting my two cents into the world my own opinion based on my
personal Airbnb experiences and then boom all of a sudden you’ve all taken
way more interest in this video than ever expected and this little YouTube
channel is all of a sudden busier than ever because you’re all looking for
answers so some of these comments from new subscribers are like you know this
is BS I don’t believe it it’s not possible you know you can’t do this
legally you get the point so I did something special for you I made a video
that shows you exactly how I do this legally if you want to watch the video
stay tuned to the end of this one I just recommend it you can click on the link
there of course but you know the proof is in the pudding right yeah so take a
look at this I made $70,000 in the month of April
what’s even crazier is April is my birthday month I was on vacation almost
the entire time I went to beautiful places like Istanbul I went to Prague
the Croatian countryside Islands in Croatia like core chula and then lastly
to belgrade serbia my family’s home country so I got back May 5th this means
I made almost 70 thousand dollars while on vacation using the exact same
strategy that I’ve been talking about in this YouTube channel for almost six
months the rest of this video is my gift to you I’m going to show you exactly how
much money you should expect to keep take home as net income when running an
Airbnb business like mine obviously you can’t keep all $70,000 because there’s
bills to pay so let’s break it down before you share my screen with you I
need to ask you one favor and I promise I’ll return that favor really quickly
see I need you below this video there’s a red button click on it it says
subscribe become a subscriber and then below that in the comment section ask me
for a video tell me what subject matter you’d like me to cover so I can continue
to give you the content that you want out of this channel but you need to be a
subscriber so that way you can see when your video is ready ok so welcome to the
family thank you for subscribing now let’s jump into the screencast what I’m
going to do is I’m going to start by showing you the progress section of my
Airbnb profile and we’re gonna go from there so this year you’ve seen that we
have so far in the first six months 311 thousand dollars in revenue the entire
of the Year last year 360,000 and a year before that 135,000 this was when I
started to get serious February this year was the year that the Super Bowl
happened and we decided to jump on it right so that’s when we really started
taking this seriously because you’ll see that in you know September October
November we started to scale up we had a first like we had like our first real
month over $10,000 in September and we took off and that’s 2016 so it’s been
about a year and a half of just solid dedicated growth to this business and in
the last six months since October we’ve more than doubled our revenue this is
huge growth for any business okay now the way that we pull this off is by
effectively managing our calendar we have so many properties in Houston that
we’re competing with ourselves now so you have to find a way to keep your
occupancy as close to 100% as possible while also collecting a good rate we’ve
got tons of video content on this already and the plenty of you’ve seen it
already but we’re not going to jump on how to do that because you can just
watch it on those but I will give you something for free that we haven’t shown
in a video yet and it’s about the property we’re in right now I’m sitting
in our only three-bedroom property we listed this three-bedroom property about
a month ago just right before my vacation and we have experienced
something that’s kind of like a hard lesson see we have seven beds in this
property we advertise that we can save 14 people in this property now that’s
great and all but groups of 12 plus they don’t book last-minute they plan ahead
so when we listed this property you know of course we’re expecting to have like a
good first month or whatever but we didn’t understand what we got ourselves
into and we’re getting our bookings like we’re getting four to six hundred
dollars a night on this property but those bookings are for end of June and
July right when we set this property up into April right so if you’re looking at
it that way people are going to book your three-bedroom but they’re going to
book at two or three months ahead of time which means that for the first
couple of months we need to discount your rates a lot just like it’s a
one-bedroom or two-bedroom because the people that you want to stay in your
three-bedroom are already staying somewhere else okay so my point is if
you’re going to start an Airbnb business your first property probably if you’re
strapped for cash right if you can’t this out and you need the money back
right away your first property should be a studio or one-bedroom I’m you get your
money back a lot faster overall profitability this one is going to crush
but of course we’ve gotta wait a few months now this is a point for renting
as opposed to buying a property too because if you are going to leverage
yourself financially and try to pick up a property and you’re only gonna have
one you want to pick up the most profitable property out there which on
Airbnb is like a four or five bedroom luxury property that’s where you make
all of your money are these big sexy properties but it costs a lot of money
to furnish and to finance and if you cannot wait three months for money to
come back in you shouldn’t be buying a property to Airbnb right it’s just a lot
safer to pick up some small stuff and start to scale once you can bankroll it
sure go buy a mega mansion and do it but again it’s safer to rent upfront hands
down that’s how we built our business trust me now let’s look at the actual
numbers so our rents for twenty one active
properties is thirty two thousand five hundred and seventy four dollars and a
penny and our electric costs are about 50 bucks on average and the reason why
is we have a corporate electric account because we have so many leases were able
to negotiate down our prices now our cleaning costs this is another huge win
normally you pay forty five fifty five dollars an hour for a cleaner right
that’s when I first started that’s what I was paying but as we get any more
properties we nose for spending way too much money on cleaning it was a stupid
so now we hired her own cleaners and we pay them by the hour and we give them
like 40 or 50 hours a week in cleaning each right so happy so our cleaning
costs are weighted cleaning costs per week that’s our Studios one beds two
bedrooms and this three-bedroom $60 per unit a week average that is insanely
cheap right that’s as if we’re spending an hour and a half in each property each
week which is not true we’ve got people are staying you know one or two nights
at a time so we made a clean the same property four or five times in a week
right so the $60 per week is a huge cost reduction so I recommend when you scale
your business hire your own cleaners that will save you a ton of money so
Internet we we like Xfinity because it’s cheaper than 18t but of course results
may vary based on where you stay who your providers are now insurances we
only need renter’s insurance when combined with Airbnb insurance both of
them together sufficient now if you’re going to rent off of Airbnb like home
away you’re gonna do direct bookings you should get extra policies there are
policies geared towards short term renters and you can get a corporate
liability policy which some buildings may require that you get short term
renters insurance can be as much as a $200 a month for one property which is
kind of expensive and a corporate liability policy to protect your company
it’s probably somewhere between 750 and 950 dollars a year okay but for our
properties since we’re only air being being right now we just pay our nine
dollars per month to lemonade calm super cheap and it’s wonderful so not a big
cost now losses here’s something for you take
one percent of your revenue and save it away for risk one percent of revenue
saved for risk because you don’t know what’s gonna happen somebody could break
or steal a TV somebody could wreck a carpet on you might need to do carpet
cleaning like like because of that you know just unexpectedly you have to clean
a bunch of carpet a bed frame might break there’s all sorts of stuff that
can happen and if you don’t have that money stored away you could run out of
cash and number-one rule of business is never run out of cash so one percent for
risk is accounted for here and that brings our total costs to forty one
thousand six hundred and seventeen dollars and a penny per month in costs
our revenue is just over sixty nine thousand dollars our total net profit
twenty seven thousand four hundred eighty two dollars and ninety nine cents
that’s absolutely outstanding it’s just so juicy but I know that some of you
have watches channel a lot and you’re gonna say well shown you have a property
manager that runs your properties this is true I don’t work any more on this if
I don’t have to I mean I could just let it run and Katherine does it for a cat
and she likes to get called does a killer job of handling
her part of the business now if you consider what you could pay a full-blown
property manager like let’s you hire somebody who’s already been a property
manager you could be spending $2,500 to $4,000 a month on that person okay it
depends on how many properties are taking on and what market you’re in and
how expensive people are for positions like this so let’s factor that in and
now we’re looking at twenty four thousand to twenty five thousand dollars
in profit but your revenue is just under seventy thousand dollars and your
profits almost twenty five thousand dollars that’s a huge margin you’re in
love with that margin right Warren Buffett would be happy with that margin
guys so let’s let’s just break it down one last time
rent your property right start with the studio start with two Studios clean them
on your own get familiar with the business you don’t need a lot of money
to get in and grow your business from there once you have enough properties
like us we’re picking up ten more properties in Dallas in a couple of
weeks and we’re hoping to have our first hundred thousand dollar month in July
okay we’re shooting for it now after that yes
we’re gonna start buying property of course well when you have way too much
money and you can’t grow as quickly as the revenues coming in there’s a point
where if you just can’t grow with your money then switch your model up so we
can start dumping more of a money into equity because we can only pick up so
many properties so quickly anyway it’s kind of hard working at that um we may
do it after this ten in Dallas but I have a feeling we’re gonna do a Florida
expansion we’re probably gonna end up between 50 and 60 leases before we buy
our first property if I’m going to see the future and know myself this is
another big thing about businesses you need to know yourself where you’re
strong where you’re weak don’t lie to yourself and if you’re not good at
something find a business partner just you know it’s got to be that way
sometimes so speaking of share this video with
anybody that you think you’d like to Airbnb with and start looking at you
know being an Airbnb host um you won’t be upset that you did so again subscribe
ask me for more content and let’s uh let’s get down into it let me show you
how to be an Airbnb host the rest of the way watch the rest of the videos on this
channel if you haven’t thank you for watching everything be automated and I
will see you on the other side

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