Cash Flowing $3K/mo with ONE Airbnb

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What's up guys, it's James here and in today's video, I'm going to talk about how we're able to cashflow over $3,000 a month in fact closer to 30 $500 a month with one single Airbnb investment opportunity. So this is pretty crazy honestly, like these numbers are pretty wild. The cash flow really just breaks when you have short term rentals. They're real cash cows. So I want to walk through how on our most recent investment and Airbnb property in cottage country, were able to cash flow over 30 $500 a month on this single property.

Now for a lot of people, that's a financial independence number that's like quit your job money from one single property, or at least have enough to comfortably support yourself and live. I know a lot of us have a lot higher ambition, why are we making 10 2030 $40,000 a month. But having one single property generate 30 $500 a month is a pretty darn good start and allows you a lot of freedom to be able to go and reinvest that money into growing your portfolio very quickly. So you can hit those higher numbers, the cash flow on this property is incredible.

So let's jump over to the computer. Let's dive right in. And let's break it all down on this property is the same property that I've talked about in other videos that we recently purchased for $520,000. I'm not going to break down and kind of go into more detail around the renovation and all that and kind of how those numbers break down on it. Because quite frankly, like I've done other videos that are going to break that down a lot more detail and do a better job than I would do in this video here. But in this video, I just want to talk about the cash flow for the property.

Now you would have seen in my other video that we were projecting on the very worst case scenario. And that's what I wanted to share with you guys. Because I didn't want to over project things I like to stay really, really conservative with my projections. But now it's pretty obvious just how well the property is going to do. So before we were projecting that bare minimum worst case scenario number of $50,000 per year. So that would have been the annual gross revenue right here. Now, as it stands right now, our initial 48 hours into the launch, we had just over $35,000, it was $35,366 in bookings within 48 hours of launching.

Now we're about a week into our launching, I think it's about seven days ago that we launched. And we've got just over $65,000 in bookings. So that initial projection of $50,000, we've obviously far exceeded that number. And all $65,000 of those bookings are between right now, which is June 2, that's actually our first guest is checking in today.

So it's between today, June 2, and middle of September. So we've only got about a three month period here for all those bookings three and a half months. And so we've got another nine months or eight and a half months left to get that the rest of the way to $98,000. Which I think honestly, I think we will end up closer to $120,000 for the year just given how things are going how the calendar is looking, and how well our property is optimized for those winter months. But still want to stay on the more conservative side, I am have zero doubt whatsoever that we're going to be able to generate another 20 or $35,000 worth of bookings over the rest of the year.

Given that over the last three months we've generated, you know, over $65,000 in total bookings. So looking really promising This is still a pretty conservative number, quite honestly. So looking at that number, like that's a big, big number for a $500,000 purchase price $520,000 to be bringing in gross revenue of almost $100,000 more more likely closer to $120,000. That's kind of unheard of honestly, like that's, that's 20% of the purchase price of the property that's generating an annual gross revenue.

Honestly, for anyone that's familiar with traditional rentals, that will just seem absolutely absurd. But short term rentals obviously generate much higher revenue. And without as well, they have a much higher cost. So we've got about go to $14,000 costs just for cleaning fees alone on the property. So that's going to eat into things that we've got our that's just basically a cleaning fee per rented week. And then the annualized cleaning fee over the course the entire year is just over $14,000 we've got our other costs that I broken out in other videos here like yard and snow removal or yard maintenance and snow removal, not removing the yard. electricity for the for the year.

Internet for the year, accounting for the year. Property taxes, homeowners insurance, which for a short term rental is a little bit higher than a traditional long term rental where you may be paying closer to 1000. We're paying about 3000 to make sure that the property is completely insured for short term rentals. And then maintenance reserves. We've got 20 $900 set aside just for maintenance maintenance needs. That's pretty standard. We've got propane which is used to heat the home and then we've got our account That's our software, basically four different accounts that we have the main one being a guest book software that we use to provide a really stellar guest book to guests.

So that's our fixed expenses for the year, annualized. That's another $16,770. So our total annual expenses on the property that get deducted out of this $98,000 is $30,810. So that leaves us with a total annual cash flow of $43,000. Now, you might be thinking, Well, what the heck, you know, $98,000, less $30,000, that doesn't equal 43,000, you should be left with, you know, over 60 $70,000. But you can't forget the mortgage payment, that's the actual mortgage payment for paying, paying the mortgage, that has to be factored in as well, because that is going to be coming out of our pockets every single month.

And nice thing is that we're actually able to completely cover the mortgage. And then after all that, we're still able to generate an annual cash flow of $43,000. So that means there's $43,000 in annual profit of being added to our bank account every single year, just from this one single property. So that's pretty incredible, because it works out to almost 30 $600 in in monthly cash flow, so 30 $583 in total cash flow each month. Now, remember, bear in mind that that's going to be hot, much, much, much higher, some months of the year, and it's gonna be much lower someone's theory as well. So it's not like a traditional rental, where you get the same exact amount every single month.

For example, in July, we're bringing 25, almost $26,000, just think about that we're bringing $26,000 in the month of July alone. So a huge portion of that $43,000 in annual cash flow is coming in just in July alone. So if you average it out, though, over a 12 month period, it works out to about 30 $600 a month in cash flow. That is quite frankly unheard of now for this particular property that equates to 116% cash on cash return, that's predominantly because we managed to get this property with 5% down. So again, that's typically that's a little bit unnatural, it's a bit unnormal, typically, you'd be doing 20% down, or you know, closer to 20% down for a property like this.

But still $43,000 in annual cash flow is pretty phenomenal. The combined ROI just gets into kind of silly land where you're getting at like 430,000, or 430% ROI in year one, year two, without the renovation are closer to 100%, which again, is still just kind of bonkers. But this is factoring these numbers are factoring in the equity pay down the forced appreciation from that from the renovation. And the and then just after that just a standard 2% appreciation per year.

But again, that those ones are less accessible, those ones aren't the ones that contribute to your lifestyle, they can actually fund your living, because you can't live off of equity pay down the mortgage, you can't live off of appreciation, what you can live off of is cash flow from the property. That's why it's such a great way to earn an ROI on a property of all the ways that you can get your ROI from investing in real estate. By far, my favorite one is cash flow, because that's money that you can then use to live off of. You can also use it to fund buying more properties for real estate investing.

So it's honestly it's just a incredible way to invest in real estate, buying short term rentals because of the cash flow numbers. Now, that's the breakdown of it. I hope that made up made a lot of sense. If you want to learn more about how you can learn let's kind of jump back here.

If you want to learn more about how you can do properties like this, do investments like this invest in short term rental properties and having cash flow like crazy and get an incredible return on your investment, then I highly recommend clicking the link down below in the description where you can set up a quick 15 minute chat with me, I'd love to talk more because we are going to be working with a very, very small select few group of students over the next six and 12 months here, just showing them how to invest profitably in short term rental properties.

So if you want to learn how to do this for yourself and get in on this action, then I highly recommend clicking the link down below in the description to schedule a quick 15 minute chat with me. I'd love to jump on the phone. It'll be with me personally, it's not someone else on the team. It literally is a call with me personally, I would love to get on with you and chat, see what your goals are. See if maybe we can help and we can help you get some results just like this.

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