How one Airbnb out-earned 40 long-term rentals

0:00 hey everyone Preston here you're not going to believe this but just one of my Airbnb properties has been generating more monthly cash flow than 40 Yes you heard that right 40 rental properties that my cousin and I own combined and by the end of this video I'm going to walk you through the exact process I used to set it up reveal how much time I actually spend managing each week and hint it's way less than you think it also showed you how you can launch your first very profitable Airbnb this year even if you're starting from scratch and the best part is I'm not going to just throw a bunch of hypotheticals at you nope I'm going to be breaking down the launch process step by step so that way you're going to see in real time how I was able to achieve these mind-blowing results so get ready because it's going to be a complete Game Changer but first let's rewind a little bit from 2018 and 2021 my cousin and I went all in our long-term rentals we're talking duplexes triplexes fourplexes even a 24 unit facility so all in we had a whopping 40 doors in our portfolio and now I'm not going to lie acquiring these 40 rental units wasn't cheap we're talking over a million dollar of our own Capital we had to invest the total market value is about $7 million on them and fast forward to today we're sitting on about $4 million worth of the remaining $3 million is debt to the banks so after all expenses these property are spitting off $112,000 per month in cash flow my cut is $6,000 per month but here's where the story takes a while turn back in December 2021 I decided to di my toe into the air beamy game and I heard whispers about these people making crazy money and I'd never taken the plunge

1:18 myself I mean could I really replicate their success and I of course I have my doubts but I figured what the heck let me just give this a shot so instead of acquiring another long-term rental I found a property in Arizona that I didn't have to purchase and threw it up on Airbnb and you're not going to believe what happened next in just 30 days I'm talking a single month here that one property rigged in $155,000 in Revenue we had a couple of unexpected expenses as well but we were still able to make $9,000 in pure cash flow and I literally couldn't rrab my head around it this one Airbnb was putting my entire portfolio of 40 rental units to shame and I thought to myself okay let's see if this is going to actually be consistent or not before I started to freak out well in January 2022 it brought in $8,600 in revenue or about $4,200 in cash flow which is pretty solid then February rolls around and it does $6,000 in revenue or about $1,800 in cash flow not terrible now at this point you're probably thinking okay well see your numbers are declining there's no way this was sustainable see most investors would have seen this and started to panic as they saw their revenue dip but most people don't realize that within the Str Str game is seasonality I knew going in that February is going to be one of the slowest months of the year yet we were still able to cash flow $1,800 that month after all expenses then June rolls around and we did this $1,423 in Revenue $111,000 in cash flow and just one month with just one property now fast forward to today I've got seven airb properties generating on average $34,000 per month in cash flow

2:37 and it's honestly while to think about how few properties you need to hit that level of income now let me put this into perspective for you it took me three long years to hit $66,000 per month in cash flow with my traditional rentals but with Airbnb I double that in just 3 months just 3 months and that's a power short to rentals they can put your financial freedom on steroids and the crazy part is I did this all remotely without having to ever step foot inside the property before launch with without even having to buy it out right now I know you might be thinking okay well Preston you're just trying to flex on us with these numbers and the real answer is no that's not my style I'm sharing this because I want to dive deep into the exact seven steps I used to launch this Cash Ring machine of an Airbnb so if you're ready to see how I did it and how you can do let's jump right into step number one which is market research now when it comes to launching a successful airb beam market research is everything you can't just throw a dart at a map and hope for the best for me I knew Arizona was going to be a good starting point I stumbled across a property on Zillow and it just clicked and the reason is a few reasons so the first thing I look for is less seasonality I wanted a market where there were things to do year round skiing and snowboarding in the winter and in the summer you got Phoenix folks flocking to escape the Heat number two the Grand Canyon is just an hour away and number three there's a major university nearby which means there's going to be a steady stream of potential guests and parents and I knew I was on to a winter and the comps in the area were also strong I could already picture how I was going to make this place a go-to spot for airb travelers step number two is negotiating with the

3:53 landlord so I found the perfect property but here's the kicker I didn't want to buy it out right I wanted to actually subl it now of course you might be scratching your head thinking okay well Preston what a landlord in their right mind would let you do that why would they just run it as themselves as an Airbnb and trust me I've heard it all before but here's the thing not every landlord wants to be in the Airbnb game it's a lot of work it's risky it requires a specific set of skills that not everyone has so that's where your boy Preston comes in with a sub strategy here's how I approached it first I had to get the landlord's attention I've got this script that I perfected over time that's designed to get them interested and address any objections that they might have right off the bat of course my angle is I focus on how sub will give them steady reliable income without any of the day-to-day hassles of being an Airbnb host after that first call I didn't let up I added the landlord to my follow-up list and made sure to stay in touch and I kept at it positioning myself as his go-to resource for all things airb me sub leasing on the second call I really focused on building Rapport and tackling any objections that he had before he was on the fence and thinking about just selling the place instead of renting it out but I knew I could win him over by the third call I had my ducks in a row I crunched the numbers and knew this property was going to be a gold mine so I made him an offer he couldn't refus an extra $100 per month in rent and just like that he was on board and we silently shortly thereafter and the rest of history now the key to negotiating these sub Le deals is simple number one be persistent number two show empathy put yourself in the landlord shoes and address their concerns and number three is make it a win-win show them how this deal benefits

5:11 them not just you if you can do these three things You' be amazed at how many landlords will jump at the chance to do the subas with you step number three is how much money I invested now I know what you're thinking is how much did it cost to get this thing off the ground my very first Airbnb I put in $26,000 that covered everything from the furniture to the initial setup cost let me tell you Furnishing airb ain't cheap we paying $50,000 for the furniture and amenities $5,000 for the first month's rent and security deposit in fact we actually negotiated these down $6,000 for some repairs like paint updating the bathrooms and some other minor repairs now later on I ended up buying the property I ride for the landlord he was looking to sell and the property was already performing so I wanted to buy it I had to come up with a down payment for the mortgage which is about $66,000 after closing cost in fact I use a 10% down second home loan and on top of that initial $26,000 I already put in Step number four is the Furnishing and amenities let me tell you Furnishing everyb be remotely is no joke it's like trying to put together a puzzle when you can't even see the picture on the box but I had a secret weapon my core team before I even started cold calling landlords I made sure I had a rockstar cleaner a reliable handyman and a mover I could trust now these guys were my boots on the ground team making sure that everything was going smoothly even when I couldn't be there in person ordering the furniture was a process you got to find pieces that look great can withstand the wear and ter of constant guest it also won't break the bank it's a balante act for sure that's why I started offering my furniture list to other Airbnb hosts and I spent countless hours sourcing the best pieces so you

6:29 don't have to now getting all the furniture into the property was a whole another challenge but we came up with a pretty clever solution we strug a deal with the handyman and he swinging by the property every day for a few weeks to make sure all the deliveries made it inside safely once everything was in the house we brought in the movers for a flow rate they unpacked and assembled every last piece of furniture and let me tell you in a house a size that was no small feat but I didn't just take their word for it I had my most trusted team member my cleaner do a final walkthrough before I pay the movers step number five is hiring a contractor team I cannot stress enough how important it is to have a solid team on the ground when you're managing air be remotely and I'm talking about just having folks who clean the toilets and change the light bulbs all of these people are crucial too I found most of my contractors on platforms like thumb tag and when interviewing these potential contractors always ask for references check the licenses and insurance and make sure they have experience with a specific issues common in your property type you can also do a quick Google search you can type in cleaners in city or state or handyman in city or state and again keep in mind your cleaner is going to be your most valuable asset for your airb as cleanliness is going to be one of the most important factors when it comes to getting five star reviews I have this cleaner interview guy that I use when I'm hiring cleaners and you can actually get it with the link in the description below these guys were my eyes and ears when I couldn't be there in person they handled everything from accepting Furniture deliveries to make sure the place was guess ready for a first booking having a team that I could trust was a complete Game Changer allowed me to manage the entire setup process from hundreds of miles away without ever setting foot inside the property that's

7:46 a key part of my airb investing strategy being able to scale and grow no matter where I'm at in the world and if you're thinking about getting into the airb game trust me building a solid team should be at the top of your to-do list step number six is delegation and management so we've got the property we've got it furnished we got our team in place now what well this is where most people assume the real work begins but I'm here to tell you if you set it up right managing an airnb can be a breeze in fact I only spend 10 minutes per week yes you heard that right just 10 minutes managing just one property and no I'm not exaggerating so my secret is two Rockstar virtual assistants who I pay $600 per month each VA number one handles all the day-to-day stuff like communicating with guests coordinating cleanings and repairs you name it VA number two is more of a big picture thinker they focus on optimizing our listings adjusting our prices based on demand also automating as much of the process as possible add to that my cleaning crew I pay $295 per turnover which by the way we charge to the guests a handyman on speed dial for any unexpected repairs and I've got a well oil machine on my hands the key to making all this work is a clear process and checklist for every single task from cleaning to maintenance to guest check-in so that way no matter who's doing the job I know it's going to get done right every single time so when I say I just spend 10 minutes a week managing this property here's what this actually looks like it's a quick checking with my vas to make sure everything's running smoothly I glance on my dashboard to check our alup rates and revenue and that's it the rest of the time I'm free to focus on growing my business spending more time with my family or just kicking back and enjoying the fruits of my labor it never fails to

9:03 blow people's minds when I tell them this they assume that to make this kind of money I'm making with Airbnb I must be slaving away 24/7 but the truth is if you build a solid team and put the right systems in place you can run a wildly profitable Airbnb with just a few minutes of work each week the best part is I did this all remotely without ever stepping foot outside of my house and I managed this entire process from fighting the r property to Furnishing it to building a team all from the comfort of my own home that's the power of building a business that can run without you okay let's talk about the numbers and I know that's what you've been waiting for so this property is called pin I pay 263 per month for mortgage taxes insurance after all my expenses that includes the mortgage the utilities the cleanings repairs adding additional amenities you name it I'm nting about $6,500 a month in pure profit let that sing in for a second that's $6,500 per month from just one property that I'm not even physically managing and over the last 12 months the single property has generated a total of $162,300 in net profit now imagine if you had 5 10 or even 20 properties like this one that's a power scaling your airb business that's exactly what I've done and look I know that this is a lot of information to take in but I hope that by walking you through my exact process for launching and managing a successful Airbnb I've shown you what's possible and remember just a few years ago I was grinding away trying to build my rental portfolio the oldfashioned way and don't get me wrong I was doing well but it wasn't until I discovered the power shter rentals that my wealth building Journey really took off in just

10:21 a few short months I was able to double then triple my monthly cash flow and I did it all without buying a single property right at the beginning so if you're sitting there thinking I can never do that or it's it's too late for me to get started I'm here to tell you that's simply not true if a regular guy like me can build a six fer airb business from scratch then so can you it all comes down to following a proving process building a rockstar team and taking massive action and if you want to learn more about how to get started with Airbnb investing this year then check out my free 30-minute training I'm going to walk you through step by step how to set up your first profitable Airbnb how to find profitable markets how to talk to landlord so they suas their properties how to sign up from the competition how to manage it for no more than 30 minutes per week and most importantly how to set up an Airbnb completely remote without having to buy it if you're interested the link is in the description and while you're at it please make sure to smash that like button and subscribe to my channel I've got a ton of great content coming your way all designed to help you build wealth and achieve your dreams through real estate investing so with that being said I'll talk to you soon