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- how to make money on airbnb without owning property
how to make money on airbnb without owning property
building a sustainable STR business
Controlling the property and leveraging other people's capital, you can access multiple locations and generate cash flow faster. Discover the benefits of using leases, lease options, and creative financing to achieve your goals. Don't miss out on the free presentation that dives deeper into the details of getting started.
in this issue...
how to make money on airbnb without owning property
Today's sharing economy has countless opportunities to make money without owning any property.
One such avenue is through short-term rentals on platforms like Airbnb. Let’s explore a strategy that allows you to run a successful short-term rental business without owning the property.
Soon, you will clearly understand how to leverage other people's property to generate income on Airbnb.
It is possible to run a short-term rental business without owning the property.
leveraging other people's property
I discovered the potential of short-term rentals when two students asked me a question.
They had been successful in the student housing niche of real estate investing but were now torn between expanding their student housing business or venturing into short-term rentals.
I analyzed the numbers and realized that by focusing on control and use of the property rather than ownership, they could achieve higher cash flow and faster return on investment.
My approach is based on using other people's property to run a short-term rental business instead of purchasing a property, leasing it, or negotiating a lease option.
This allows you to control and use the property without the financial commitment of ownership.
You can focus on generating cash flow and building a down payment machine by forgoing the benefits of ownership, such as equity and depreciation.
The key is to focus on control and use of the property rather than ownership.
the numbers: owning vs. controlling
Let's say you have $100,000 to invest.
Using that money to purchase a single property, you would have control over one location.
However, if you use that same $100,000 to lease multiple properties, you could have control over six, seven, eight, nine, or even ten locations.
So, the example of a four-bedroom house and ten one-bedroom units.
Assuming each bedroom generates approximately a net of $800 monthly, the four-bedroom house would generate $3,200 in net monthly income.
In contrast, the ten one-bedroom units would generate $8,000 in net monthly income.
By controlling multiple properties, you can significantly increase your cash flow and return on investment.
By using other people's property, you can achieve a higher return on investment and lower risk.
the benefits of control
The key benefit of controlling a property rather than owning it is generating cash flow quickly and with lower risk.
Using other people's property can avoid the financial commitment of a down payment and mortgage payments.
This allows you to build a down payment machine faster, which can then be used to purchase properties in the future.
Controlling a property provides flexibility and agility in a rapidly changing market.
With the rise of short-term rental regulations and ordinances, it can be risky to commit to owning a property long-term.
You can adapt to changing laws and minimize your risk exposure by leasing or negotiating a lease option.
It is possible to run a short-term rental business without owning the property.
in other words…
In conclusion, it is possible to make money on Airbnb without owning any property.
By focusing on control and use of the property rather than ownership, you can generate higher cash flow and faster return on investment.
Leasing or negotiating a lease option allows you to avoid the financial commitment of ownership and adapt to changing market conditions.
By building a down payment machine through controlling multiple properties, you can eventually transition to owning properties in the future.
So, if you want to enter the short-term rental business, consider leveraging other people's property for maximum financial gain.
how did you like today's newsletter? |
that’s it for the moment…
J. Massey
PS: Here’s a way we both can grow:
1 Referral — all the links — A database with all the platforms and OTAs I find promote your short-term rental business (less than 10% of these make it into my newsletter).
5 Referrals — mod: using chatGPT - masterclass on demand of how to use chatGPT / AI to build your short-term rental business (~90 minutes of video content).
10 Referrals — mod: raising private capital — masterclass on demand: how to raise capital from investors (~90 minutes of video content with ebook).
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