The BEST Type of Property to Buy for Airbnb

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What's up guys is James here and in today's video, I want to talk to you about three main types of vacation rental properties or short term rental properties that you can buy. And my recommendation on what the best one is, there's really what I found three different types of properties that you can buy when you're investing in short term rentals. And so I want to break that down, talk about what they are the pros and cons of each of them.

And I also want to share with you my personal preference, what I find to be the best type of property to invest in for short term rental. Now, if you're looking at investing in short term rentals, if you want to strategically go out and earn an incredible return on investment buying properties for short term rental, then I highly recommend that you click the link down the description below to set schedule a quick 15 minute call with me.

Now on that call, I'm going to talk to you about how we might be able to help you to actually start growing investing in properties for short term rental and do it the right way, on our most recent purchase for Airbnb, we actually got a 280% return on investment in year one, and we actually blew that number out of the water, that was our projection. Now the reality is we're actually gonna be over 300% ROI, because the property is cash flowing a lot more than we thought. And that one property is cash flowing $40,000 a year. Now I broken all the numbers down that deal in another video.

So if you haven't checked that out, I highly recommend checking that video out as well. But I say this to say that, hey, there is a huge opportunity if you're looking to invest in short term rental properties if you do it the right way. And I would love to help you do that. I'm actually going to be working specifically directly with a few a small group people over the next six months. And we're about to close that down. So I highly recommend that you check out the link in the description below and set up a quick call with me before we close the doors because we're almost at capacity for the students we're gonna be working with coming up soon here.

So just make sure that you click the link in the description below schedule a quick call with me. And I'd love to talk more about how we can help you to start replacing your income investing in short term rental properties. Now with that out of the way, let's dive into it. And let's start off by just talking about what these three different types of properties are. Now, property type number one is what I call a turnkey property a turnkey vacation rental.

Now what this is, is a property that is completely turnkey. Meaning that all you need to do is put the key in the door, turn it and you're ready to go. So typically, this is going to be an already operational Airbnb property, it's already got bookings in the calendar, it's got a track record. And so buying this type of property, you're really just buying a fully functional operational business, oftentimes, they'll even sell it with bookings into the future. So you already have immediate income coming in, as soon as you take ownership of the property.

Now, that can be really nice, because it's so so passive, there's a huge, you know, like, setup, setup system, you know, setup process, that's where I'm looking for, there's huge setup process that you completely avoid by having a turnkey property because you don't have to do any of that initial setup. You also don't have any of the holding costs associated with that initial setup. meaning you're there's no period where you're paying the mortgage, paying the expenses on the property, but not bringing in income because usually, like I said, You're the property is being sold with bookings already in place.

Now, the downside of that is it usually going to pay quite a bit of a premium on this property, the typical bought or sorry, seller of this property is going to be a relatively savvy investor who's selling this property. So they're going to know what the property is worth, they're going to be looking for a premium on it. And you're going to pay that premium for the convenience of buying this highly highly passive investment.

So that's property type number one, probably attempt number two is what I've dubbed the furnish and list properties. These are properties that are fully renovated, they're good to go, all you need to do is furnish them, set them up with the right amenities, and then you can list them right away on Airbnb and other short term rental platforms. Now, the obvious advantage here is that you, again, have a very small amount of time between when you buy the property and when you get it listed. Now, obviously, it's not direct immediate income, because they're not being sold with bookings already in place, it likely wasn't a short term rental yet. So you do have to go and build up that track record.

So there's a bit more of a learning curve, there's a bit more of a starting ramp up. And you do have to go and actually take some time to set the property up. So you are going to incur some costs to hold the property and set it up beyond what you actually pay for purchasing the property. But those costs are going to be relatively minimal. Now, the other advantage here is that oftentimes you can get better deals on these properties versus buying completely turnkey property, because you can find a kind of hidden gem a diamond in the rough a property that other people aren't looking at from a short term rental perspective. So they might just not be willing to pay as much as you are.

And so the property is just worth more to you and you can get a good deal for it because you're paying what everyone else thinks it's worth, as let's say a single family home, rather than paying what it's actually worth as a short term rental. So that is the second type of property a furnish and list type of property. Now, property type number three, and this one is my personal favorite, this is my favorite type of property to invest in is a fixer upper property. Now this is a property that needs substantial, or at least quite a bit of renovation work to be done, maybe it doesn't need a full gut job, but at very least, it needs a lot of cosmetic work. And it's completely out of date.

Usually, it's going to smell not the greatest, that's a good way of knowing that you've got a good fixer upper on your hands if it does not smell great. And as grocer pictures that paints in your mind, they smell that you're smelling is the smell of dollars. Because what you can do with a fixer upper property is you can get in there, you can take a property that typically is a distressed property, meaning that the property owner wants to get rid of it, there's a reason they haven't done those renovations themselves, and then try to sell the property for more money, it's because they just don't have the means to do it oftentimes financially, or they don't have the means to do it physically because of health concerns something else.

So oftentimes, you can get in and get a really, really good deal on these properties. Because the property needs work. And not everyone is wanting to get into a big project like that. Now what that means that now you're buying a property with instant equity, you buy a property for less than it's actually worth, now you've actually got additional equity, right from the right from the get go, that's a really good place to start. Next, what you're going to want to do is actually renovate the property, bring it up to your standards, and you're gonna want to renovate it strategically.

So you do things that are going to strategically increase the value in force appreciation of the property, so that now you buy this $500,000 property, you put maybe 60 $80,000 worth of work into it. And now suddenly, it's worth $700,000. Because other people are valuing that property more highly, you know, that renovation that you've done, adds value to the property beyond what you just spent on the property. Because again, your work of actually going like buying the property and managing the renovation that has value, you're doing these strategic renovations.

So now not only have you gotten to design the property, specifically, as a short term rental, you got to design the way that you want to, but you've also forced appreciation in the property, which means that you've got even more additional equity in that property right off the bat. So you're making way more money, this is how you're able to earn, you know, $100,000 in equity, and just a few months of renovation, the profit that you make on that is crazy. And what you can also do is now you can do a cash out refinance on the property, get your initial investment and your renovation money back into your pocket, you can recycle that into the next deal. So you can ultimately just keep recycling the same funds into buying multiple different properties as a really, really great strategy.

Because in addition to doing the Airbnb, where you get a really great ROI, you also get to leverage the common Burt real estate strategy to buy a property build some really great equity in it, get your money out of the deal. So it's much more scalable, you know, you know, it doesn't take a ton of money to do this method, you just recycle the same method over and over again and do multiple properties so much more scalable, much more profitable, it is more active is the one downside, obviously this is not a set it and forget it type of model, you're not just buying a thing and then just letting the management company take care of it, you do have to manage the renovation, you have to manage the whole setup.

And there's a period of time where you are going to be carrying the property and paying the costs of it. But without actually bringing in income. So you need to account for that in your projections understand that cost is going to be coming out all while the renovation is going on. That's why you need to be organized around the renovation to make sure that it all goes off smoothly on budget and on time. So there's a couple of different moving pieces there that make it much more active in the other strategies I mentioned. But for me, it's my personal favorite right now, because you can build so much profit, additional profit into deals doing on that way than the other two models.

Now it's not to say those other two models don't have their place, I actually just bought a furnish and list property. Because the deal was so good, it had a lot of acreage, there's some cool things we're going to be doing with it as far as auxilary dwelling units. So all those different strategies do have a place in a portfolio. My personal favorite if I had to choose just one though, is those fixer upper properties because there's just too much upside to be ignored there.

So I hope you found this video helpful if you want to learn how you can actually start implementing any one of these strategies and start investing strategically into short term rentals that you can have as a lifestyle asset and how producing an incredible ROI. Then again, I highly recommend you check out the link down below to the free training where I'm going to be working with you. I'm sure there's actually a link down below to schedule a call with me. So just make sure you click the right link. Make sure you click the link to schedule a quick call with me because I am gonna be working with a really small group of people over the next six months here, helping them to invest in short term rental properties.

So if you want to actually work with me directly if you want to have me hold your hand help you analyze deals help you find a great deal, structure it properly and go and execute. So you can make sure that your investment in the next short term rental you purchase is a solid one that's going to have a strong ROI and be a great long term investment for you and your future, then I highly recommend you schedule a call with me click the link down below. I'd love to talk to you about how we can work together and how we can help you make that next investment of yours an absolute knock out of the park when So again, just click that link down below to schedule that call with me.

I hope you found this video helpful and valuable. I hope you like my thoughts on it my insights. If you did show me some love Give me that like button, just click that like button, give me a thumbs up on the video here. And if you haven't yet subscribed, then what are you doing? What are you doing, we're posting two new videos every single week on the channel here talking about all things short term rental and Airbnb trying to provide massive value as much as possible in every one of these videos.

So just make sure that you hit that subscribe button if you haven't already, because you're going to want to stay up to date with all our new content we're putting out like I said two new videos every single week. So hit that subscribe button, hit that like button. And if you're interested in investing in properties of your own for Airbnb and short term rental, click the link down below to schedule a call with me and I'd love to talk to you directly. Have a great day and I'll see you in the next video.