Is Airbnb arbitrage dead? What changed and what still works

0:00 making thousands of dollars from a property you don't even own used to be the hottest thing out there and as someone who started like this and scaled to $344,000 per month in remote income I can attest to that but in the last year or so AR's caught an ugly reputation hand up if you think the answer is yes to the question shortterm rentals are contributing to the housing crisis the Airbnb Airbnb bust is upon us well guess what the stock is getting shellack today uh what's going on and and why could this be a good thing for overall Society now let's rewind a little bit airb barbit charage is like being a Matchmaker between property owners and travelers you sign a sowb and denim with the landlord essentially borrowing their property to rent out on airb beam and the reason this works is because short-term rentals allow you to make extremely high cash flow which covers all the expenses and leaves you with $2,000 to $3,000 per month in profit or even more I started doing this in December of 2021 after struggling to scale my portfolio with traditional rentals for 3 years I got hooked on Airbnb because I got to $15,000 in bookings in the very first month $99,000 of which was clear profit and in the following years I continued this approach and even used the high cash flow to purchase the properties that was renting while things started to change as more and more people rushed in trying to take a piece of the pie for themselves last summer reports of AR Revenue dropping by 50% started to appear in cities like Phoenix and Austin now this turned out to be false and according to air DNA the revenue dip was actually around 3.6% now the reason for this is because 13,000 new listings hit

1:18 the market so of course there's going to be more listings and more competition so the people that have their listings available were starting to see a decrease in bookings but things didn't continue getting better since New York even baned airb bees last September with the regulation called local law law 18 thousands of Airbnb and other short-term rentals face a Crackdown in New York City as local law 18 takes effect they hit Airbnb host with strict regulations that made it almost impossible to have a thriving Airbnb business this deao band requires all Airbnb and vbo hosts to number one register with the mayor's office of special enforcement number two only rent out a place from living in so goodbye to investment properties max can only have two guests at a time and you also have to be present with the guest and the minimum stay is 30 days which doesn't even count as a short-term rental at this point and this is why I created the bridge method it alternative and better way of doing Airbnb Arbitrage now before I explain the key differences between Airbnb Arbitrage and the bridge method I want to address the elephant in the room which is the claim that airbnbs are causing the housing crisis now the truth is they're not causing the crisis but they are contributing a little bit to it after a deep dive into the numbers and data with the help of every day name it's clear that a solely airb included housing crisis is just not possible now airb do impact home prices in the area but they're not the main driver of the housing crisis that we have today in America the low Supply the high interest rates and inflation along with uncontrollable population growth are the main drivers of the crisis not to mention there are.5 million homes listed for sale while whopping 16 million sit empty there's so many more factors that play a role in the current

2:35 housing crisis so it's not true to say Airbnb is causing the housing crisis so with that out of the way I want to quickly explain what the bridge method is and why it's a more ethical way of doing airb Arbitrage one of the key problems with the traditional approach to air bbrr recharge is that people can scale to 100 plus sell B properties while offering bad service the result is a lot of occupied long-term rentals at a huge pool of competitors on Airbnb now me over a thousand students who use the bridge method to make money with airbnbs are taking on a different approach and it's a reason why we continuously make money while the rest of the population makes you think that air beam is collapsing instead of aggressively scaling and trying to get to as many properties on the market as possible we do the exact opposite we focus on finding properties in profitable micro locations away from all the chaos and we put 10 times more effort into them that means we invest heavily into design amenities and the guest experience to put this into perspective my worst performing Airbnb makes more cash flow than my 40 rental unit portfolio combined another example is my student Chad who makes over $90,000 per year from just one property alone and 3 months ago I posted an interview on my Channel with Hampton his there we be generating $20,000 of Revenue in the first month since going live the bridge with it is not only more ethical but it's also simpler to do because it allows you to focus on quality over quantity instead of dealing with a bunch of sub properties and hundreds of guests every single month regular people launch one property that replace their 9i job in a matter of 3 to 4 months I have seven airbnbs at cash flow $34,000 per month and to be honest I could launch 20

3:51 more properties with the fund and experience I accumulated over the years now I'm not going to do that because I heavily focus on an investment metric today which is return on time investment which means instead of going for the highest Roi I go for the highest return on investment so going with the bridge method and focusing on providing quality experiences allowed me to quit my 95 back in 2021 shortly after launching my first Airbnb I also set up a remote team that does all the work for me so I can work a couple hours per week and spend the rest of my time how I want to so to recap airb charge is still possible but the old approach 99% of people who just want quick money is gone and I'm happy with this because now you actually have to put effort into number one finding a researching locations number two finding and researching properties number three designing them well and having attractive amenities four four creating a professional listing with professional photos and number five learning how to use technology to automate and upgrade your business at the end of the day Airbnb is a Hospitality business and you have to find areas where tourists regularly come to but at the same time you can't just go to these super saturated places where everyone wants to go so to recap the bridge meod is a new way of doing Airbnb for people who want to invest into real estate but they can't afford a property due to these insanely High interest rates at home prices and all this can be done remotely without leaving your house you can own the properties you can subbly some in different states in fact my first one was in Arizona and I live in Utah and this entire process can be done REM with your boots on the ground team like your handyman movers and cleaners it's like playing Sim City but with real houses and people so if you're interested in launching your first Airbnb you don't own you can click the link in the

5:08 description to book a free call and as always if you found this video valuable please give it a like subscribe to so you don't miss any videos and I'll see you in the next one