My 1st Year on AirBnB - For New, Existing, and Aspiring Real Estate Investors - Tips in getting into Real Estate
Well some of you may know my blog to be usually about CryptoCurrency. However, I am an Entrepreneur at heart. I always look to 10x My Money, by rolling over profits from business into cash flowing assets such as Real Estate, Stocks, Other Businesses, and Cryptocurrency. Today I would like to share with you My 1st Year on AirBnB which took me from a LandLord to Hotel Owner, overnight.
Many of you have heard of AirBnB. It's the Uber of Hotels, disrupting the entire hospitality industry. Already reaching billions in market cap.
If you ever do consider investing in Real Estate, please due your own due diligence before making an investment or purchasing a property. This is clearly my experience, I will share the investment that I made along with tips that helped me become extremely profitable in my first year in Real Estate.
Nov 2015' I Bought a Property out in a Rural Area in the Mountains, where many people go away on vacations all year round. I ran into this investment by visiting a friend of mine who recently bought in the community. I was in love with the place. Decent sized 1700 Sq Ft. Home 3 Bedrooms 2 Bath Basement with entertainment, fireplace, large wrap around deck, enclosed deck to play cards or hang out when it rains, in the woods, in a private community with many amenities. I said to him, how much did this place cost you? ....... $100,000. -------I was sold! A light bulb went OFFFF!
I bought my property the very next month $160K ---- for a 3,200 SqFt. 4 Bedrooms with a loft, large basement, fireplace, garage, wraparound deck, enclosed porch, with pool table/pingpong table, and all the furniture that existed in the house. Also a nice little touch, a running stream in the back of the house, where I can eventually put a gazebo.
When I saw this house, I asked myself, would I want to vacation here? Absolutely.
Checklist Tips and Questions to ask yourself before buying:
Would I Vacation Here? ---- Yes, home is large to fit many guests and is in a gated community that consists of Lakes, Baseball Fields, Basketball Courts, Rafting, SkiSlopes, and Hiking.
Was the property in good condition? Built in 1995 and the inside of the home was well taken cared of by an old couple whose kids have left the nest and are looking to liquidate. Roof, plumbing, electrical, Water Heater, and A/C Heating Units, all fairly new. All that had to be redone were the floors and paint and new linens.
Financials? -----Couple bought the property back in 2004 for $250K and are selling it in 2015' for $160K. ---- Absolute Steal, Low Taxes of 5,000/year, no crime. Plus you can't rebuild a 3,200 SqFt house for $160K The house was worth more through its construction than the value they sold it for.
Here is what the inside looked like:
More Financials and Real Estate Investing Tips:
Tenant Renting vs AirBnB Renting
Property: 4 BR 3 BA 3,225 SqFt.
Purchase Price: $160,000
Down Payment: $5,000
Intereste Rate: 3.75%
Market Rents: $1,600/ month
Mortgage Expense: $1,400/month
Tenant Renting CashFlow: + $200/mo or $1,200/ yr.
vs.
AirBnB: $4,500 / month
Expenses: $2,500 (mortgage, taxes, cleaning, and operations)
AirBnB Cashflow: $2,000/mo or $24,000/ yr
Gross Revenue: $54,000 for the 2016' yr.
Return on COC. (Cash on Cash Investment of $5,000) - 480%
Plus equity is being built up in the property through AirBnB vacationers and the house has less wear and tear from people only staying for 3 days weekends. As well as the significant tax advantages that comes with Real Estate Investing.
Its like the game of Monopoly, 4 green houses, 1 red..... ehhh nah!!! -----Lets Start With a Hotel!
Let me know your thoughts and comment below. If you found this article insightful please upvote and share with your friends. Im here to empower people and teach what I know. So feel free to ask me any questions.
Cheers!
- MobileCeo