In 2019 I bought my first short-term rental.
In 2022 I made a total of $899,671 in revenue with only 6 properties.
Here are 10 foolproof steps I took to start printing on Airbnb:
Step 1. Identify strong Airbnb markets
I searched for areas with high demand for short term rentals.
Then I headed over to AirDNA, inserted my desired market and looked for data on:
- Historical occupancy rates
- Average daily rates
- Top properties in your market
Step 2. Pick a strategy
I personally put money down to buy a house.
But Airbnb arbitrage is also a very good option.
Which is basically approach landlords to let you sublet their properties on Airbnb
Step 3. Run a detailed investment analysis
Forecast revenue, operating expenses, operating income and cash flow.
And lastly, calculate the cash on cash return.
I always aim for a minimum of 25% for buying and holding.
And I would aim for 100% if I was doing arbitrage.
Step 4. Get pre-approved by the lender
I reached out to multiple lenders and gave them the info they needed to give me loan estimates.
Step 5. Furnish it
Don’t go barebones on the furniture.
You must furnish in a way it stands out from the competition.
Step 6. Get professional photos
This is how I captured people’s attention within seconds.
More clicks = More reservations.
Step 7. Interview and hire cleaners and handymen
I established really good communication with them (especially w/ cleaners).
Understood their process, figured out if they had worked with Airbnbs before and if they could do same-day turns.
Step 8. Build the listing
I made sure I have a well-written and detailed listing with high-quality photos, accurate information and clear expectations.
Which ultimately resulted in better conversion rates.
Step 9. Leverage software tools
I used YourPorter as my property management software.
And PriceLabs to automate my pricing strategy.
Step 10. Hit publish and make bank
That’s a wrap.
Hope you find this blueprint valuable.
If you want to learn more about short term rentals, DM me “AIRBNB” and let’s chat.