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

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

Reader Comments

  1. Hi Sean, love the videos thus far. Another video topic i'd like to see would be how you decide on selecting rental properties within a proximity to you or if you manage any properties completely remotely (in a another city). If you manage remotely, please share how you manage that, pros and cons, and any big learnings/pitfalls.

  2. I'm new to the channel. Recently eliminated debt and began looking into investments including real estate for passive income. Was blown away by the rental arbitrage system and love it! Thank you for sharing your knowledge and insight. I'm now looking into LLC before starting. I want to know if you have any advice or insight to newbies on structuring the business with S corporation/C corporations, or if that is unnecessary under the LLC and Airbnb platform. Thanks again Sean!

  3. I have watched several, but I can’t seem to find the one that you explain how to list leased properties on air bnb? Please point me in the right direction. Thank you!!

  4. I would like a follow up to the Extenuating Clause video you made. How can I prevent abuse from a host who want to use it to get away with a full refund when cancelling days before check in because the threat of a storm that ended days before check in an did not disrupt flights. Airbnb ruled the Extenuating Clause applied.

  5. You guys…. that's just his revenue… his net profit wont be near that at all. I'm making 10k right now on 3 property that I own and paid way less for 4 years ago in Seattle, but I only net profit 3k. You see what this guy is doing. Hes a fake. It's illegal because its subletting and you cannot do that in literally all states because you're making profit off of a lease. It's like renting out a hotel room for others but at a market that demands it at higher price. OR like renting an exotic and renting it to someone else for a higher price like in Miami. This is risky, illegal, and you can get sued. Dont let this guy tell you this bs. He probably only has like 1 building and it's his friend or has a deal with a person who owns property that doesnt know what this guy is doing. Its illleegalllll. Stop getting information from him and actually google this to check.

  6. Thank you so much for all the great value I will like to see a video on the cost how much money to start the business I know it will be difference with the location but what to I need to get in to consideration getting in to the business thank you in advance

  7. I was at a real estate meeting and a guy offered mentorship courses. I meet with him this week. I am watching this video so I have my questions ready for him. A video on that would be helpful?

  8. I know you said eventually you’ll be buying properties. The ones you have do you not own them? I also notice mortgage wasn’t deducted.

  9. I have a 15 acre property with views, golf carts, shooting range, trails in the middle of wine country (Paso Robles) in California. There are approximately 25 award winning wineries,vineyards and tasting rooms within 7 minutes of the property and 465 wineries,tasting rooms and vineyards within 25 minutes. The house is a 3 bedroom, 2 bath with "extra sleeping room" . It can sleep 8 comfortably. There is a fully functional 27' RV with its own camp site and amazing views. It sits approximately 100 yards from the main rental house and is excellent for kids or extra guests. The wine industry is a billion dollar a year industry in San Luis Obispo County and Air B7B's are I have a 15 acre property with views, golf carts, shooting range, trails in the middle of wine country (Paso Robles) in California. There are approximately 25 award winning wineries,vineyards and tasting rooms within 7 minutes of the property. The house is a 3 bedroom, 2 bath with "extra sleeping room" . It can sleep 8 comfortably. There is a fully functional 27' RV with its own camp site and amazing views. It sits approximately 100 yards from the main rental house and is excellent for kids or extra guests. Because of this, Air B&B's are prevalent, but most are small homes and rooms. I'm wondering about the viability of offering up a larger property that offers more than just the sleep and go sight see experience. The property it self is a magical, fun and beautiful place to just be. How do I market and price such a property ?

  10. I live in New York and would like to start Airbnb business, but it looks like its illegal in NY, meanwhile there are a lot of airbnb hosts with multiple listings. Any suggestions on how to start in NY

  11. Hey! Great videos! I am a super host on AirBnb and I just started a few months ago. I currently have 15 properties of which 5 of them I have converted to AirBnb. I wanted to firstly thank you for opening my eyes to leasing vs buying. This gives me a good (less risky) method to expanding to other markets. My question is, how do I do market research to find potential apartments or houses to lease in potential markets and what should the opener be when speaking to the landlords. Should we pay the year’s rent up front or put large deposit down then monthly rent to make it attractive to the landlords? What do you suggest?

  12. I noted your pearl of wisdom regarding clients booking 3 months ahead so a property owner should discount his rates the first 3 months…is there a few more you could recommend? Plus, I hope it not asking much…is there a specific contract you employ with the cleaners that you hire? I assume the cleaners would want something on a regular schedule but vacation rentals cleaning schedule are all over the calendar?

  13. What do you mean to get started, "Rent your properties"? Don't you purchase your properties, then turn around and STR?

  14. So cool, your family is from Serbia! My family is from Romania, I’m first gen here in the states. Neighboring home countries! Not that it matters I’m just giving you a comment at this point.

  15. Awesome !

    It’s better to do local but what issues if we do remote properties?

    Please share how to manage properties remotely.

    Thanks !

  16. How to get customer support agents in a dispute to side with you rather than guest. My house rules state $50/hr for excessive filth (cleaning beyond basic)…yet rarely have I been successful getting $$ back

  17. Puhlease explain how you go about obtaining corporate leases as opposed to residential leases. I need more details on that. It's been a serious road block for me.

  18. How do we payout the owners without also charging them the cleaning fee? This way we won’t have to ask them to give us the cleaning fee? Thanks! Learning so much from your videos

  19. I've been considering doing this in my city for some time now, I've spoken to family and friends about it & no one truly was as excited as me about the idea lol oh well I'm still going to do it! Thank you for being so transparent, open and informative!

  20. Amazing videos here in California it's kinda hard to troll the property owner for subleasing. I tried but got NO🙈

  21. A for beginners specifically. Maybe highlight some of the initial challenges and how you over came. Maybe there is a way to highlight the interesting nuances of the lifestyle of a host. A user friendly video that might help transitioning into the Airbnb community as a host a little easier would be great.

  22. Im in Dallas, just now getting into the short term rental business, if you have any seminars or meetups in Texas let me know!

  23. How do I advertise different bedrooms as a host in my own home and charge per bedroom? because people get the misconception that they can have total access to my home and all the bedrooms for ONE price and I will not make any money if I did that. Thank you

  24. Ok so i walk into a realtor office looking for my 1st studio or 1 bedroom to rent for air b&b…how do i ask them "can i air b&b this unit since i dont actually plan to love there"…i hope you understand my question. This to me is a very step and i need some insight on this…no one has a video on this topic as far as i seen…is how do i find a spot..i want to keep it 100% legal

  25. Hey new to BnB and new to your channel. Got a property on rent, description is great everything is up and running but we are not booking as many as we wanted…

  26. If you had the chance to buy a 10 bedroom 4 1/2 bath, 10,000 sq ft house for $600,000 on prime real estate near University campus, hospitals, 5 minutes from downtown and casino, would you do it?

  27. Hi Sean, thank you for such great, forthcoming and generous information. I'd love to see a video about making Airbnb work in a city with no POI or tourism. I live in the central valley in ca. Thank you!

  28. Thanks for the info! What about a video covering the most profitable cities/countries to do airbnb, in a subleasing business model?

  29. How do you know what cities are the best investment? You said Miami had a lot of demand but too supply in an older video. Thanks! I love your content.

  30. I'm just starting in real estate. Very interested in Airbnb renting. Just wanted to know your take on renting in modest income areas approximately 7 miles from downtown areas like Chicago. Thanks.

  31. How is the system you use to automize the Airbnb business?, and what recommendations would be for a new host?
    Thanks for sharing!

  32. I think it's really important to diversify I'm looking to find out information on how to build my own website as a supplement to the Airbnb website any suggestions

  33. can you actually create a step by step guide of how to build this business so a beginner like me can start

  34. Do you use some kind of contract/ partnership/ lease legal document when getting new houses? . I wasn’t going to pitch to landlords until I was thoroughly prepared in September. Well my first meeting is tomorrow morning and another later this week. I need the houses by May 18th 🤯😬🤔

  35. Maybe you already have a video on this, but would love to know YOUR FIRST STEP! How did you finance your first property? Why did you decide where to buy your first property?

  36. Could you do a video that differentiates how you would pick up new properties from single family (private owners) vs multi-apartment corporate pitches. Is the way you pitch to these two groups of landlord different?

  37. How to market a property abroad. I recently bought 2 small studios in Sosua DR. I live in Canada.
    Is there a difference between remote working for Canadians versus US citizens?

  38. Please make a video that teaches us how to cold call landlords to rent and sublet their property Thank you

  39. just subscribed; new to your channel, seems very informative/educational.would like to see more of your videos

  40. I like your videos i am fixing my first house is in Guatemala city is a6 bedroon mansión thank you for you videos

  41. I'm trying to wrap my head around everybody's giving away their ideas and then create more competition for themselves this makes absolutely no sense

  42. Thank you for posting this information. I am just starting an AirBNB business. Very much appreciated. Dont have my first one just yet, but I do know that is coming.

  43. Do U go to people who are renting to rent to u and then u put it on airbnb? I wish u all the success …Thank U that was awesome:-)

  44. Do you recommend cramming a second futon or pullout bed into a room to increase guest count? Or keeping one bed with a desk and/or sitting area to add to the comfort and esthetics ? Thanks for all the info!

  45. Hi, can you please make a video on how to rent property for airbnb, make it ready and kick off your first booking with it?

  46. How fancy should the house be for a successful Air B and B in an area where there are only 2-3 stars hotels. What perks for the guests would you recommend?

  47. Love your video. Do you have one that shows us how to get a Landlord to let us rent their property for short term rental?

  48. Thanks for all the great content! I’d be interested in seeing a video with detailed instruction on hiring staff for the first time. Specifically, payroll, tax withholdings, benefits etc. Thanks!

  49. I’m new in your channel and I’m wondering if you have any information about your webinar in Dallas Tx I’m trying to start my own Airbnb I have property in Guatemala and Honduras

  50. Love your videos. Can you please do a video on accounting? How do you manage your cash flow and expenses? Can you recommend any particular Software?

  51. I appreciate all of the information you share with us. Thank you! Can you please do a video on how to become a Co-Host or co host remotely if you don’t know an Airbnb host and do not have an Airbnb property?

  52. I am in a city that is anti-Short-Term-Rental and the apartment managers are not willing to cooperate, how do I set up arbitrage?

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