How Preston analyzes a Louisville, Kentucky Airbnb deal

0:00 so in this video I want to show you how I'm going to turn this property in Kentucky into a cash flowing property generating $937,500 a month in net cash flow hey guys so my name is Preston if you're new here I own over 47 rental properties across multiple States totaling about $12 million worth of value and in that portfolio I have seven airbnbs and in the past 12 months they made over $350,000 in net cash flow and in today's video I'm going to try and do something that nobody else does when it comes to launching airbnbs and that's going to be showing you all the research finding a profitable market and then finding the property within that market so that I can be a winner on airb beam and then I'm going to go and pick all the right furniture and all the amenities to make sure that we can hit those numbers and it's funny when I mention airbnbs or rental properties and being a landlord sply I get a lot of more negativity and hate from people you know blaming me that I'm ruining the housing market or that my airb are going to be dead soon and I'm going to end up on the streets so if that's you you're entitled to your own opinion but if you're someone who wants to get into real estate and you've considered all these other real estate models like Fix and Flip Burr Etc but you're not sure which one to choose and you actually want to learn and Trust all the data the numbers rather than just listening to some random Karen then stick around because I want to show you how literally one property is the difference between you right now and adding a good amount of extra income I'm going to show you the exact process on how to find it just like I do for my own properties so this video is going to be separated into three key Parts number one why did I choose this market number

1:17 two why this Market will generate said numbers and number three why did I choose a specific property so first up let's go into why did I choose this market so why L Kentucky in particular and what we want to do is the following number one what the city means to the travel industry in theate and number two why people want to travel there who wants to travel there and if there are any other highlights we should know about so after doing some quick searching online to answer our questions here we found the following answers so number one Lille is a key contributor to Kentucky which had roughly 75.9 million Travelers in 2022 we also have the Kentucky Derby Museum in Louisville with chat over 250,000 visitors in 2023 there's also other popular attractions and events in Louisville like the Kentucky Derby and Al other landmarks like the Muhammad Ali Center that draws crowds every single year and lastly it looks like Louisville accounts for 25% of kuy's tourism Revenue now this is all a good starting point indicating that Louisville can be a good Market to go after when it comes to airbnbs however we want to dig a little bit deeper and try to find the types of guests or even the tourists who book airbnbs in that area so with that in mind I found the official tourist website of Louisville and here's even more data so the average visitor is about 42 years old and a majority your couples about 66.8% with Partners or spouses the average household income is over $90,000 per year and the average day is about 2.6 days spending about $292 per day and people are primarily traveling here for experiences about 86.1% so looking at these metrics they're telling us a couple things so number one are tourists

2:34 are couples who are looking for an experience and these people don't mind paying a little bit more to have a better stay while enjoying their vacation so in conclusion there's more than enough data and proof that this Market in Louisville Kentucky is indeed a good Market to go after and we got our Target demographic that has a lot of purchasing power there's a lot of attractions and locations that we can build around Airbnb so onto step number two on why this Market will generate said numbers that I said at the start so let's dive into the Airbnb seing in Louisville and see what's up with the numbers now we're going to check out some stats from this tool called called air DNA for the year of 2023 so there we're going to look at stuff like how many air BBS are there how often they're booked how much they charge each night and how much money they make in a year we're also going to think about ways to make an Airbnb stand out like adding awesome amenities experiences and also creating a special Vibe especially for couples looking for a cool experience so we're going to try to figure out how some airbnbs are making more money than others and getting more guests every single night but first let's look at the market as a whole so now if you took a look at the numbers as a whole for this Market Daniel revenue is roughly about $53,000 per year G rate is 50% average daily rate is $292 a night and the score for this Market is a 97 out of 100 which is great now these numbers look promising but remember this isn't enough data to really understand how our property is going to perform so let's do a comparison to the property we found versus the market as a whole so our property is doing 65% occupancy rate and the overall Market is 50% our property can generate $474 per night and the

3:51 overall Market is $25 per night and the most important number is the annual revenue so our property can do $106,000 per year but the market is actually doing $53 $3,000 per year now before I continue I know you're probably thinking how in the heck are you going to charge double the revenue versus what the market is charging now this is where the real fun and all the data analysis begins because most people would look at these numbers and immediately abandon this market and research another one but if you look a little bit deeper and think logically here's how you going to approach this so here's what we learned and here's what we're going to try to do so first we're going to understand that these numbers are just averages including both the top and also the Noto top airbnbs secondly make our air stand out with unique amenities experiences and especially for couples and we can get inspiration by looking at what the other top performing air BBS are offering we're also going to aim to do better than the average by being unique and awesome also we're going to check out how some air BBS are nailing it with higher occupancy rates and also Daily rates and then we're going to use what we know about the market and what people want to beat the average numbers so with that being said let's analyze some of the top performing airbnbs in this market that we're competing with so I found some of the top 4 markets in the segment that we're going after so the thing about what's so different about them that they're able to charge double with what the average lville air host is charging so here are a couple things I'm noticing number one is a Next Level Hospitality so think quick check-ins spot rooms super fast responses these HS are on it and making sure your stay is smooth from start to finish number two is the unique Kentucky Vibe if you start looking through these pictures they all

5:07 have a cohesive design they have that Kentucky charm and it's not just some place to sleep but it's a dive into the local culture and number three is a smart marketing so these hosts aren't just posting their listings they're selling an experience so they're using social media their own sites and killer photos to draw you in so it's not just about being an Airbnb it's about standing out they're also using catchy titles and descriptions that really grab your attention and they highlight what's unique about them like a pre a nulu or deep dive into the bourbon culture another great thing they're doing is the decor and the medies that really pop so we're talking Bourbon Barrel tables plus seating those little extras like hot tubs or game rooms and it's those things that really makes the guest willing to pay more and also this is one of the most important things are the professional photos so they have high quality photos that make you want to jump into the picture and these host know that great visuals sell the state now the bottom line is winning airbnbs and Louisville aren't just playing the game they're changing it they make their place a part of the Kentucky story and that's exactly what we're going to do we're going to try to keep it simple and make it stand out so now that we know how winter airbnbs can perform the next step is to find a property listed for rent that ideally has some of the perks that the winter airbnbs have and then we're to figure out what amenities to add and how to stand out better than the winter air BBS so the third is why did I choose a specific property now I tease this at the start but this is a property that I found that could be a good candidate so you want to go on any sites where people list their properties for rent like z.com for rent and Facebook marketplace now I selected this particular property because it's nicely

6:23 updated and in a great location that we can work with also the recent Renovations across the property insur it's going to be a hassle fre experience also make sure things won't fall apart in the coming years now the last step here is to figure out which amenities to add and how to stand out better than the winter air BBS so the amenities I'm thinking for this property would be focused on the backyard so we're going to try to utilize this space to add a luxurious hot tub a welcoming fire pit some street lights or even a dedicated barbecue area so what we're going to try to do is transform this regular looking house into a place of relaxation and entertainment because it looks like the winter airbnbs are prioritizing their backyards so that's where I'm going to look to shine and sand out even more so personally I like to look at sites like Wayfair Target partly andark to get my furniture and if you don't have a design modat in your body like me you can use resources like Pinterest interior AI or I've even paid someone on Vier to help me create a mood board and also find amenities and also furniture that I need to order for like a 100 bucks so now let's look at the actual expenses and how it would look like if I were to set up this property through a subas contract so first let's look at the start of cost so the first one's red is about $3,100 per month I'm also adding addition $10,000 if you want to add a hot tub so our total initial investment for this property because it's a little bit bigger is going to be $26,250 so now we're going to plug in the income and also all the expenses so the average 0 rate is about $474 per night at a 65% occupancy rate and this based on this comparable property that I was able to find now we're pluging all our expenses

7:39 like our monthly rent Insurance utilities also other expenses like paying our virtual assistant to manage everything so that way we only have to spend about 30 minutes per week to manage this so after all expenses have been paid our total cash flow number would be $4,700 per month so another number that I'd like to look at is a cash on cash return number so if you don't know what cash on cash return means it's the amount of money that you're getting back for the amount of money that you're putting in so in this case we're getting about $56,000 per year and we invested $26,000 so that's an insane 216% cash on cash return and to put that into perspective I like to get anywhere from the 8 to 10% cash on cash return for my long-term rentals so as you can see this model completely blows other real estate models out of the water and even if that property doesn't hit the cash flow that I'm predicting now this is based on conservative numbers but I'm confident that this will do no less than $2,000 per month in cash flow in a worst case scenario so in closing of course there's going to be a lot more when it comes to setting up properties like how do you actually set up a property or do you need to buy it use a suble contract and if you use a sub contract then is the landlord going to allow you to do that or my have questions like do you need to hide contract to set up the furniture or do you need to do this all yourself and is there a possible way to automate this entire thing so I don't end up creating a second full-time job and if you have any of these questions and I actually have a free live training that I'm going to host that goes over exactly that and the main goal we're trying to accomplish in the free training is how to set up a property that you don't even have to own

8:56 completely remote so it doesn't even matter where you live so if you play your cards right attend the training and apply all the info it'll be more than enough to set up a profitable Airbnb property so if you're interested you can feel free to click the link in the description and register it's going to be completely free there's literally no cash you can come in take all the info apply it to your situation and go from there so we went over finding a profitable Market and my research process on how I came up with that market and then we analyzed airbnbs in that area and we also found a property that can match the winning airbnbs and then lastly coming up with a key aspects in terms of what furniture and amenities i' buy to stand out even further and also hit our predicted revenue and cash flow numbers and if you found this video helpful then please let me know in the comments as I'm thinking about making a series about this all right see you in the next video