Behind the scenes of a $212,700 a year Airbnb chalet

0:00 one of my short-term rentals made $212,700 so you can follow through and understand everything to the team in Step number one we're going to talk about the numbers step number two we're going to talk about the management step number three is all the market research and number four is my final thoughts so let's get right into it step number one are the numbers so for this particular short-term rental it's a five-bedroom four bath Chalet located in Virginia that we launched in March of 2023 so now as far as the numbers and investment cost goes like I said before it brought in $212,700 so that comes down to $710 per night and my occupancy rate maintained about 82% throughout that 12 month period so this is how the expenses break down we have the property taxes Insurance HOA fee utilities cable internet we also pay our virtual assistance to manage everything including a repairs and maintenance budget that we set aside every single month because this property is brand new we only set aside 3% each month so for the cash flow from this particular property in the past 12 months we did

1:17 $10,000 per month in cash flow so total expenses including the mortgage it comes out to 7670 per month on average so now that we have the expenses covered here's what the math looks like so the revenue comes out to $227 39 the total expenses for the year comes out to $92,400 cash flow is $120,000 or a 52% cash on cash return so broken down on a monthly basis the revenue comes out to $17,730 per month the expenses comes out to $ 7670 per month so the take home cash flow is about $10,000 per month now depending on the month I would have higher revenue and also higher cash flow as you can see through the summer and winter months I would make around anywhere from $ 27 to $29,000 per month in revenue and in the slower months it would hover around $1 13 to $15,000 per month now the big question is you're probably thinking to yourself okay I I got it but how much money did you actually put into the property so here's an entire cost breakdown of how much money I invested into this property to set it up so the purchase price for this property was $750,000 I put down 20% at a 9.25% interest rate I know gross but I did negotiate that they pay for part of my closing costs so the total down payment came out to $156,000 now for the Furniture Design and amenities like adding a game room a hot tub a theater room fire pit green lights neon science accent walls Etc this also includes paying my contractors to get everything set up came out to $85,200 I spent $241,100 laying around to do this what

2:38 if I told you you don't have to have that type of money to set up a property in fact you can set up a property without owning it put no more than $1 to $12,000 into it depending on how big the property is it can still cash flow $2,500 per month out of it so just stick around I'm going to share more details about that later in this video so now let's move on to step number two which is the management now this part surprises almost every single person that I talk to about this like my family friends Etc I literally spend 10 minutes per week to manage it I'm not kidding I have two virtual assistants I hired from upwork and also remote hub for about $600 a month each the first virtual assistant handles the guest messages coordinating cleaners and also the handyman and also the day-to-day management and the second one helps out the first VA but also focuses on setting up the listings the pricing and also the automations for the business for the boots on the ground team we have the cleaners who we pay $295 per turnover clean and then we pass the fee on to the guest the handyman comes in as needed and a hot to maintenance person as well for this particular property so all I have to do is checking on them on a weekly basis to make sure that they're doing their job properly and that's about it people get their minds blown when I tell them this usually you think I have to spend 10 to 15 hours per week or even more to justify the money that I'm making from this property but that's not the case and the crazier thing is I set up this property completely remote without stepping foot inside before or after going live I managed the construction and set up everything completely remote by using the boots on the ground team and the two virtual assists that I described above this is the power of creating Automation and also delegation processes within a short tormental so you can spend your time

3:54 doing what you love and not create a second job for yourself and honestly I can't stress enough how powerful this model can be if you set up everything correctly from the beginning but if you do it incorrectly it can turn into a living nightmare so just stick with me here now let's talk about step number three which is the market research so the way I was able to make that amount of money with this property was by identifying a profitable segment within a market that the competition doesn't Target or I also look at markets that have less competition so I chose a specific Market because of the following reasons so first it was newly built so I knew there was going to be less maintenance for the first 7 to 10 years number two it has a really cool cabin vibe that I know guests would be interested in and number three has really good bones I like to look for like vaulted ceilings big windows a deck area awesome views Etc what you want to focus on is having a key differentiator within your property so that other people can't just come in and steal and copy what you have to make their property similar and also what I did additionally to differentiate myself was looking at nearby properties seeing what they have and then what they don't have and seeing how I can improve that in a better way for my guests so the money that I spent before launching this property went to hiring an awesome interior designer key amenities like a hot tub a game room stream lights neon SS Etc to further position myself better than my competition I cannot stress enough how important it is to invest into to a really good design and also amenities for your property so there you have it this is the behind the scenes broken down into an a toz process now getting back to the point I made earlier in this video on how you can set up an Airbnb yourself that cost no more than $10 to $12,000 that can make you $2,500

5:12 a month in profit so the method that I used starting out was something called the bridge method so meaning you're going to still do the market research so you can find the profitable markets but instead of buying the properties you're going to be searching for properties listed for rent within that given market and then you're going to call those landlord and then say something like the following hey I love your property I'm interested in renting your property however I'm not a traditional tenant I operate a vacation rental company and our clients range anywhere from corporate workers that travel frequently for the jobs like nurses other professionals or families looking for a vacation so what I do is I place them in a property like yours and we handle all the management day-to-day our team of professional cleaners will come in after every stay to make sure that the property is going to be kept in great condition now of course there's a lot more that goes into this conversation with the landlord but that's a general idea so what you do is you pitch the landlord to suble their property meaning you become a second landord essentially without having to buy it or going to hundreds of thousands of dollars in debt and locking yourself into these super high interest interest R right now and sub contracts can vary anywhere from 1 to 2 to 3 years depending on how confident you feel about the property and also market and once you're about to sub the property you can use the research you gather from your local competitors and you buy the furniture that looks great but doesn't break the bank and then once you do that you can hire your boots on the ground team of handyman cleaners and movers to go in some all the furniture and then clean up the place after everything is done and then once you have your virtual assistant in place they'll handle all the day-to-day where all you have to do is check in on them maybe once or twice per week so that way you can set up an entire shter rental without having to buy the property and can do everything

6:28 from the comfort of your own home this is one of my favorite models to get started and it still works today if you set it up properly and then once you have enough capital and confidence you can now go and buy these properties so you can get the equity plus leverage bonus depreciation and all the traditional real estate advantages just like I do so if you're interested in learning more about this model I'm going to be hosting a free life training where I'm going to show you exactly how I set up my first property step by step also give you a road map on how you can do the same for your situation you can check the description box or the pin comment if you're interested at the end of the day regardless if you do air bb or not and you decide to do this on your own there's going to be Roblox just like any other Venture so for example you can living in an area where air maybe is restricted and it's hard to follow the rules or there's just too much competition in the given Market or maybe you're not comfortable talking to landlords or parking 10 to $15,000 into a property that might not work out now these are roadblocks you're going to have to overcome otherwise it would be too easy and everyone would be doing it and it wouldn't be that profitable so if you find this video helpful please give it a like and I'll see you in the next one