How I Make A Fortune On Airbnb Owning No Property | DONT BUY A HOME FOR AIRBNB IN 2019

How I Make A Fortune On Airbnb Owning No Property | DONT BUY A HOME FOR AIRBNB IN 2019

welcome back Airbnb family today we’re
gonna talk about a discussion that has been passed around in my social circle a
lately which is whether it’s better to go for equity or cash flow when buying
your first Airbnb home now I have a very strong opinion on this and I’m sure
plenty of you do on either side of the fence but mine is gonna mess with you
here my opinion.. Don’t buy a home! don’t buy a single property if you want to be
an Airbnb host and there’s a very good reason for this we’re gonna jump right
into it it’s a very simple math problem if you want to have multiple Airbnb
properties and be successful as a business don’t buy your home so here we
go let’s say you are buying your first investment property you need 20% down
because it’s a non FHA you’re not gonna live there you’re gonna run out the
entire place on Airbnb which means since you’re not living there it’s an
investment property 20% down so let’s say you buy a $250,000 home with two
bedrooms and your 50,000 down you also need to upgrade it possibly and furnish
it so you’re looking at potentially $70,000 a month before you’re live on
air BnB now that two-bedroom property will profit you maybe $5,000 and that is
including your equity because you’ll have to pay property taxes utilities pay
for your cleaner etc and in this example the other person’s gonna pay for their
cleaners too so let’s keep it even so you’re gonna make maybe sixty two to
sixty five hundred dollars a month on your two-bedroom and your profit after
all the costs will be five thousand dollars including your equity and so
seventy thousand and five thousand dollars a month out okay that’s the
homeowner side now I rent my property i furnish them and then I short-term
rent them now let me tell you what I do with my seventy thousand dollars in this
situation I get ten properties right it cost me about seven thousand dollars per
that includes my cost of getting my first lease the furniture everything
okay so at ten properties my rents are probably about fifteen
hundred dollars in average with my utility costs sixteen fifty I don’t have
to pay property taxes everything’s worked into the of course into the rent
and I don’t have to worry about insuring my my appliances the landlord has to fix
the plan if they break things like that so 1650
and costs plus my cleaner costs I make about three thousand dollars a month of
my property so let’s say just you know conservatively I make nine hundred
dollars per unit so ten units that’s nine thousand dollars a month where
homeowner with their seventy thousand dollars is now making five thousand per
month so you can see I’m already ahead by four grand a month but it doesn’t
even end there so the cool thing about doing rentals is you can grow in smaller
increments the moment I have another seven grand I can put another property
and have eleven right so first month I make nine grand I can put seven thousand
towards another property I make another grand my second month I can put another
property down my third month I make another nine grand I can get almost two
more properties my third month so by month and a month three I’m looking at
about fourteen properties which is outstanding the person who owns a home
they need to actually make profit for fourteen months before they have seventy
thousand dollars again before they can get their second property now some of
you homeowners are gonna say well I gain valuation of my property because it’s
going to appreciate in value by like three percent on average a year well
let’s factor that in so let’s say that your $250,000 home makes 3% a year
you’re looking at about seven thousand dollars a year in appreciation so let’s
break that up to like six hundred and fifty dollars a month and appreciation
so you’re making five thousand now let’s add the 650 so you’re making fifty six
fifty per month including your appreciation I’m still making nine I’m
still weaponeer there but let’s talk about housing bubbles right you could
lose money on your property this could actually happen also you could buy a
home in a terrible part of town that’s not good for air B&B which means you own
it you’re gonna have to sell it or turn it into a regular rental property which
is not why we’re here we’re here to make more money than that if I get a property
where I lose money which I’ve done before I just cut the lease right I’ll
even buy it out early if I really want to get out of it fast so at worst case
scenario I’m stuck with a property for a year but it makes me more agile I’m in
I’m out I find the right neighborhoods and I make all my money that way and I
do this completely legally we’re gonna actually cover this in a very recent
like very near future video I’m gonna actually show you the legal process that
I take to pick up all of my leases and homeowners or
property management companies they can’t do anything about it they are stuck with
me at least to the end of the lease so we’re gonna talk about that later and
this is going to be the secret to making your fortune on Airbnb but to keep on
topic here don’t buy your property it’s sluggish it’s slow you need way too much
money to get in initially now you’re money stuck in your property if you have
to turn it into a regular rental which is no fun it’s just not nearly as
profitable and it’s a little harder to manage too because you’re stuck
replacing your own appliances so I don’t if it’s no breaks I’m like hey
maintenance come in fix my stove thank you goodbye and it’s a lot easier for me
to track my expenses too because everything’s kind of rolled into my
lease agreements so if you have any other questions kind of on this topic or
maybe even like just some fast facts on like how to host certain ways if you
have certain problems that you’ve had with guests or you know with your
listings feel free to leave me a comment below I’ll be happy to help you out you
just let me know what you need leave the comment now like this video share it
with your friends and of course if you want more content like this you
subscribe more is coming and I promise you very soon I’m gonna teach you the
legal way that I picked up my 20 properties without owning a single one
so thank you for watching air B&B automated I will see you on the other
side car

100 thoughts on “How I Make A Fortune On Airbnb Owning No Property | DONT BUY A HOME FOR AIRBNB IN 2019

  1. Where's the follow-on video which goes into further detail, specifically about the legal side?

  2. Bada book! Bada boom!

  3. Has anyone done this in Canada ? Is this legal over here ?

  4. 1. 99% of owners won't allow this 2. permits crack down on this making it impossible

  5. Too bad it's not possible here in Vancouver, BC with such strict regulations! You can only rent out your primary residence for short-term rentals and if you get caught, which is likely, you get fined $1000 a day. It's times like these I wish I lived in the states.

  6. The true people making money are the rental owners

    Equity over profit!

  7. Fucken scammm

  8. Furnish a 2 bedroom for $7k. Pretty tough make it attractive enough for anyone to really want to stay

  9. I’ll have to check it out. I’m about to drop just under $20k on my 3bed 3 bath , but I’m going higher end.
    I’m not renting but I bought in cash. I appreciate your logic though.

  10. Hi Sean, I’m a big fan of you since I’ve seen this video more than a year ago. Almost watching all your videos and contents. Can you please make a video with a detailed breakdown of a realistic listings income you already have ? I live in Houston and looking at the $900 per month income is kinda unrealistic/hard to make with 60% average occupancy rate.

    Thanks for all the information. Keep it up !

  11. We are on the same boat. I made almost the same amount of revenue as you do per month when I had multiples properties at that time, in the same method you mentioned above. It’s a very very profitable business but also risky.

    But now we are facing a lot of problems with the condo rules who are starting to take actions as there are more Airbnb hosts in the building. How do you deal with the property management companies in regards to those rules?

  12. Currently do not have any properties under my belt but I’m creating an LLC in Massachusetts and going all in on this idea. Would love to connect with anyone else just starting up or experienced.

  13. I appreciate you from UK. Subscribed to your channel. How do I contact you?

  14. I had a guest dispute once. They seemingly had a party. Messed up the carpets. Airbnb didn't think so. They didn't allow me to use the deposit that I required. How should I have dealt with that? The deposit was inaccessible. Then I found out that my heating bill was $700. I thought they had the windows open the entire time with the heat cranked up. I'm not sure how I should have dealt with that. Also, how to deal with theft and/or damage in general. Airbnb wasn't going to give me market price for the new items that I had just bought that were ruined.

  15. You make money, your landlords make money. Win-Win

  16. Is there a way to know how much a house is pulling in on airbnb? I'm new to this.

  17. Which state is your business/company incorporated? Legal business name? LLC or Corporation?

  18. Also some people may realize he is breaking the lease cintract and refuse to leave forcing an eviction and the law regarding the eviction process from an illegal bnb is murky at best.

  19. Wait are you paying 7000$ per month or per year?? Cus if per month, you're only earning 900$ a month from one property that's a huge loss.

  20. And subleasing requires proper license. You can't sublease without the homeowners permission.. and if you are subleasing you'd have to pay for the damage

  21. I'm a Military Veteran. You inspire me. Please let me know how I can partner with you and make some cash money. Maybe you can get two interested people to team up half and half financially on this rent business.

  22. Complete BS.

  23. This is such a great video! I had theorized that this would be a good idea several years ago but I couldn't figure out to put it into numbers and what potential pitfalls to take into account but yeah, this was great content!

  24. Phone no to contact and email for one on one coaching.


  26. Subleasing? That is your secret?
    What a load of manure.

  27. Thank You for the video. Do not listen to these idiots who do not understand contract law. There is a reason why they are broke.

  28. What is your plan if there is a downturn in the economy and demand goes way down? How do you plan on keeping up with hundreds of leases if the cash flow dries up?

  29. My comments are getting thumbs up.
    Are you seeing it???

  30. Great information bud. I swear some of these people in the comment section are idiots. I own property that I rent out so the main objective is to keep tenants in those properties. Airbnb is awesome bc no matter what the landlord or property owner is getting their 💰. Unless it's in the lease, or state law restriction, Airbnb is fair game… Great videos.. 👍👍

  31. How do you "get" 10 properties for $ 7,000 each? Do you rent it?

  32. Do you pay a higher than normal rent to get the owner interested to let you lease the property? And you disclose that you are going to do air bnb?

  33. you wear suit, why?

  34. as a landlord, If I was to see that this was happening in my property, I would hang you

  35. What about liability insurance ? Can you get insurance to cover renters since you don't own the property?

  36. How to deal with owners or agent if you do this thing? Should i tell them my plan to do with the property? Thanks heaps

  37. Duuude amazing. This right here! Can you please explain the type of lease contract needed? Thanks

  38. Hello, I really enjoyed this video. I would like to know if a non – resident can get into airbnb business/investment.

  39. Finding apartments that allow subleasing is difficult

  40. Shady Business 101. LOL

  41. 2019 this lad thinks home owners are dumb!!

  42. Its a dungarees advise.

  43. Sean thank you for the insight you gave during our local REIA meeting last thursday night. Is there a specific order I need to view your videos? Thanks.

  44. You are leveraging fully which makes sense, this is a leverage world, in for a penny, get in for a pound.

  45. Recently bought a duplex in Bryan TX  and I am thinking of making one side a short term rental. I have zero experience in doing this so I thought I would ask for advice from those that have some experience.

    The unit is totally rehabbed with new floors, paint, fixtures, lights, ceiling fans, granite countertops, new windows, bathtub and tile in shower. It is a 2 bedroom 1 bath and I have yet to furnish the place. It does have a washer dryer and all new kitchen appliances.  

    I won't manage it myself looking at a couple of companies that take care of all management, they charge between 10-20% of gross revenue. 


    Does anyone have any recommendations for property management for this short term rental?
    How should I configure bedrooms…..King, Queen, Full or Twin beds.
    On average what should I anticipate for occupancy rates?
    What are good daily rates for both event type dates….ie SEC Football Weekends, Parents Day, Graduation dates etc and just your run of the mill days?

    I plan on using this property sparingly myself. 
    I am sure I am leaving out some obvious questions so don't hesitate to add to this discussion.

  46. I would absolutely love to HOST you and yours: @t Please visit and stay in a cozy peaceful space after the days activities.

  47. Hi, is starting an airbnb management better to do by yourself or partnership with other people? Is it possible to do the main work solo? Thank you

  48. greetings how would the part of the cleanings of each house be done when there were so many rented?

  49. This is basically subleasing and most landlords don't allow this.

  50. Hi how you find a property to rent out for Airbnb thank you

  51. What is not accounted for here is the fact that with a rental, 100% of your monthly payment is never earned back, where as if you own the home, your deposit and a portion of your monthly payments is earned back whenever you sell the home + equity made after appreciation. Lastly, 20% is NOT required on most conventional loans. You are able to do as low as 3.5% on conventional loans. 20% is only necessary if you want to eliminate the mortgage insurance.

  52. Where are you getting units for $1K rent? How am I getting a landlord to get on board with this?

  53. because you are a money grubbing piece of shite that is ruinning life for everyone else, you are a scumbag

  54. Could you please talk a bit slower ? Thx

  55. This dude is a complete scum bag.

  56. Ima trucker if I buy a duplex with VA loan which means it can’t be assumed under an LLC so basically rental income won’t be taxed or even known can I long term rent one side and Airbnb my side while I’m away??? Also my city Orlando Airbnb laws says I have to live on the other side of the duplex that I am short term renting ??? (Loophole??)

  57. Do you have the permission of the landlord to do that or do you just do it without asking.

    Sorry that's illegal 🚫 real estate agent

  58. Do you have a link to the follow-up to this video? If so where do I find it?

  59. Who would allow another investor/tenant to sublease their property? This is a great idea in theory, but you should mentioning some level of due diligence, before blindly following this advice. While I sign and screen one tenant a year for my property, you move people in and out weekly and have a tremendous amount of overhead managing that. Additionally, if you report that your stove is not working as a tenant, I will be there in a day or two. If you EVER let a stove go on a Airbnb for two days before repair, your going hammered with negative reviews which is going to kill your business. Great ideas though…but there is more to it than the numbers you mentioned.

  60. BS. Press thumbsdown

  61. Sean – you gotta work on your outfit: 1. Only dead man wear square 2. A ties pocket square has to be in a different color than the tie (I know the cheap salesmen like to sell it to you in a pair…) 3. Men with style don´t use tie clips at all (that´s for clerks or jerks) 4. IF you don´t wear Versace – wild tie patterns are OUT 5. Shave – you look like a truck driver in a suit. Good luck – next try. 😉

  62. Illegal and you can be sued. Don’t listen this shit guys…

  63. I’m a landlord and if you spoke to me like that after possibly one of your hotel guest broke a stove I’d tell you to do one and fix it yourself.

  64. Im listening to this thinking he's leaving out alot . he didn't speak about cost of leasing or renting.

  65. I've heard recently that some areas are now requiring a permit to list short term rentals. Does anyone know if this applies in Atlanta?

  66. Thanks for the video, I list on Airbnb and on the app Musjroom, which is a great alternative for renting and booking rooms and lastminute couches. But lately im not satisfied with Airbnb customer service and the payouts in the Netherlands!

  67. Super smart!

  68. what a arse hole and he showed his face people have been ruined for less please dont do what he does

  69. Hey Airbnb automated, my name is Marius and need some help with an ideea of mine… Can you please give me an advice?

    Is it possible for me to contact the owners of some cottages and propose them a deal in which I promote their property on this rental platform in exchange for a percentage?
    Or something like that?
    Thank you for answer.

  70. Hahaah.. this guy is such a bullshiter….All of the apartments and rentals do not allow airbnb or any type of subleasing…This would work if you are able to find landlords or companies that are clueless…..

  71. As stated below, you are probably letting out on Air Bnb without Landlord knowledge or consent. In the UK most tenancy agreements have a condition that forbids sub-letting, so its a dangerous game you are playing, which might work in the short term, but you cannot build a sustainable long term business from this!!!

  72. Actually a pretty smart idea (sub leading properties to Airbnb)
    -no property tax
    -no maintenance (property manager)
    -less money down

  73. What if you don’t get any clients your stuck with paying rent for an empty apartment on many months!

  74. How do you get homeowners to let you sublease?

  75. LOL 1 look at you,i dont trust you

  76. This may seem petty.. but you included the appreciation and not the money that is being paid toward the principal.

  77. Doing business in a smart way is great, but it'd be fine if you could just keep your business model to yourself, now you are sharing it with everybody. Once they all do business in your way, more and more housings will go to short-term rental, less and less rental stock will be on market, harder for regular tenants to find places.

  78. It is not possible to rent all 10 properties at the same time; so if you could just rent the half of them ; the other half you have to pay from your pocket; great business my friend …

  79. I like your attitude, thank you for teaching me the ins and outs!

  80. I want to say welcome to all the new viewers! I been getting lots of comments asking for practical advice on how to start your own AirBnb business. All the information you need is free here on this channel. Over 150 videos on the topic.

    However, my contracts and certain scripts are proprietary.
    Publishing them for my biggest competition to see would be insane. I only share some of this on consulting calls which you can book through here.

  81. Here I am! Learning ! 😊

  82. You explained exactly why letting a property management company manage your property. I do have one question what do you say to get them to allow you into a lease to rent when using the property for a air B&B without being in violation of the lease and eviction?

  83. Everybody in the comments seem to be very “PUSSY” !!!! “My landlord” lmao!!! Don’t be a faggot! If you have an opportunity to make some money do it! Fuck the rules.

  84. Besides for subleasing problems you are forgetting about the long-term investment, selling the house when you are done. You can't sell a rental.

  85. You MAY get by with this ONCE in a city. Property mgmt companies/Realtors have get togethers. You will be mentioned. Word will get around. You will be sued. In the right or not you will have to hire a lawyer. Deduct that out of your profit.

  86. This is actually a topic I've been considering covering. This is a great way to start an AirBnB business! The costs are much lower as you suggest, and as long as your upfront and honest with the person lending the house to you, you're ok. It's the people who try to sneak an AirBnB business into a rental property who get hosed in court. Good on you for sharing what you know. I will probably cover this in a future video, too. Good luck and congrats on your business!

  87. What about the new laws for Airbnb now, how do you get around that?!

  88. What your talking about depends on where you live in america. I live in texas we are not alowed to sublit so we have to buy property.
    We can even lease option but not allowed to sublit

  89. Can u simply rent property that you don’t live in and make money?
    Legally etc

  90. Sounds good, but how those figures will look like, if you add taxes and depreciation?

  91. We can’t do that here in Florida.

  92. I haven't watched all your videos as yet
    Do you have a video where you advice sériel renter using Airbnb, do you insure your apartment ?

  93. How much do I actually need to start this?

  94. Thanks for the tip. I had a friend he was doing subleasing, but not renting it on Airbnb.

  95. I would love to get started in this but I dont know how. Can and will you help me?

  96. Can you share your steps on your airbnb market research?

  97. Great channel, I've been trying to assess the feasibility of this idea in my country (NZ). But am afraid to sign a lease when I have no idea how many nights I am going to be able to fill. Is there a way to get this information on existing listings? Thanks!

  98. Yeah I'm really interested to see how you can do this legally. Most properties that I have looked at have a no AirBNB rule. Looking forward to more videos!

  99. Ur math is impressive!

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