Cash flowing $1,500/month with ONE Airbnb

Start Growing your
BNB Business Today!

Get inside access to our professional courses, hosting community, and much more!

What's up guys, it's James here and in today's video, I'm going to talk to you about how I've been able to invest into an Airbnb, that's going to be cash flowing about 15 $100 a month, based on our pretty mid range projections on how the property should do if we get performed. But average where we want to be now could do a lot better than that it could do slightly worse than that, but are pretty middle of the line projections are that this one single property is going to be producing about 15 $100 per month in cash flow.

So in this video, I'm going to tell you about how that's possible and how you can find a property to invest in that will do the same. Now before I dive into all the details, if you are interested in learning step by step, how you can start investing into properties for short term rental actually by airbnbs, then just click the link in the description down below. And you can schedule a quick 15 minute chat with me on that 15 minute chat will help to diagnose exactly if we can actually help you to achieve those goals. My business partner and I are going to be working with a really small group of students over the next six months here helping them to invest into Airbnb properties.

So if that's something you're interested in, I highly recommend you schedule that quick 15 minute chat, and I can help to guide you in the right direction and let you know if I can actually help you by working with you directly to work with you to achieve your goals. So again, just click the link down below and schedule that 15 minute chat. little disclaimer on that is that we are only going to have those times open for the next couple of weeks here until our program is filled up. And once that fills up, we're only taking on 15 students that we're going to be working with over the next six months here. Good, it's gonna be a really small, close, tight knit group that we're working with.

Once that fills up, everything's gonna be closed down completely, until we open things back up and about a year from now. So if you are interested, then be sure to click the link in the description down below and schedule yourself in for one of those shots as quickly as possible. So now let's get into the numbers. And let me talk about obviously 15 $100 a month for one property is pretty fantastic. So I want to break that down for you.

Now if you could have every single one of your properties cash flowing 15 $100 a month, then it's pretty easy to realize that, hey, you're only probably going to need about four to 10 properties depending on the level of income that you want, in order to completely retire, right and to live a based off the cash flow of these properties. And just cash flow. We're not talking about the equity build up from paying down the mortgage, we're not talking about any of the annual appreciation on the property, we're just talking about cash flow.

So obviously, it's really powerful if you can get properties that will cash flow that strong. But how do you do that? Well, there's a couple different factors that led to this property being a fantastic investment and being one that we could get to cash flow so high. Now one of those factors is that we were able to buy a property that was a really great deal. And that's the first step with any great investment is you want to make sure that you're buying right. And so when you're buying a property for Airbnb, you oftentimes want to find what we call an off market deal. Now there's a bunch of different strategies you can use. But basically, this means just finding deals that aren't listed on the market.

So the typical MLS realtor.ca, if you're in Canada, you're not going to find the best deals on there, you're typically going to find really great deals off the market. So that's gonna be a private sale. Now that with this particular property, we actually did find it on the market. So it's not impossible to find really great deals, you just have to know what to look for. With this particular property, it had been sitting on the market for about 90 days, and it hadn't been selling because the sellers of the property had priced it way too high. And their real estate agent, let them price it way too high.

So no one was coming in and putting in offers. And so when we put an offer in that was substantially lower than asking, we ended up actually negotiating it down even further after that, it got accepted. And if another buyer or potential buyer had to put it in an offer, it probably would have gotten accepted. But everyone was scared away by this really high ticket price. Because also in the air that we were buying, everything was going for over asking. So a lot of buyers probably just didn't want to waste their time submitting an offer under asking in a market where everything seems to be selling for, you know, 50 100, even $150,000 over asking.

So there's a couple different factors that led to us being able to get a really great deal. But that was step number one, we're able to get a really, really great deal on this property. And that's a big part of what's going to make a cash flow really well for us as an investment. Now the other part is going to make it cash flows, obviously the income side of it. And that has to do with just making sure that we can maximize the performance making sure that we can set things up properly to attract the ideal type of guests. Now the cool thing about this is that there's a real arbitrage at play.

And this is how I always like to tell people to think about Airbnb, I'm not talking about rental arbitrage. I'm not talking about renting a property and then flipping on to Airbnb. But an arbitrage is just when you can buy something low and sell it high. And so really, what we looked at here is we're looking for a property that maybe isn't as desirable to the other people investing in that market but is uniquely valuable to us as Arab be hosting as Airbnb investors. And so I can break that down in a couple of different key factors. Now the property that we bought was a cottage property is north of Toronto.

And so if you think about the typical person that's investing in a property up north of Toronto, it's usually someone from Toronto that's buying a cottage. And what that person wants are two things, two things that they want above and beyond all else. Number one, they want to be right on the lake. If you're buying a cottage cottage is synonymous in Canada with a lake, you want to be right on a lake. So you can do all your boating but your jet skis in there, do all your fun water activities. So it's a non negotiable for most people buying causes that be right on the lake that you've got your own private dock, etc.

The other thing they want is something turnkey, they want something they can just go right up to and move right in. They ideally want to completely furnished because it's not their primary residence, they don't want to do any work to it, they are buying it for a leisure, they're buying it for recreational use, they're buying it to relax. And a renovation can often especially if you don't have experience be anything but relaxing. So they don't want to do renovations. And they really ideally don't even want to furnish the place.

So if we can find a find a property in that market, that number one is not turnkey, that needs some renovations, then it's going to be less desirable to all the other buyers that we're competing with. So that's great. that bodes well for us, because when we do strategic renovations, we gotta get the right property that's got the right bones, but just needs a facelift, then we can actually build instant equity. And that's exactly what we did with this properties, we went and we did about 70 $80,000 worth of renovations and increase the property's value about $150,000 more than what we paid for it.

So we've got instant equity in our pocket. So we can then do a cash out refinance, pay back the the the money that was spent on the renovations, and have more money in hand to go and do the next property, the down payment, everything else. So that's a really great advantage to us. That's one area that we were able to get an arbitrage. Now the other area in addition to buying a property that wasn't as desirable because it needs some renovations, we also bought a property that wasn't as desirable to the typical buyer, because it's not actually on a lake. But you might be thinking, well, that just means that you bought a property that's not on a lake.

So there's no arbitrage there, you're just bought a less desirable property. But the really cool thing is that this property is actually directly across from a lake. That's not desirable for the typical person by a college because they want to be able to put their boat in at their own private dock. But for Airbnb, you get all the benefits of lakefront, without any of the downside of lakefront, you get the benefit of having this beautiful unobstructed view.

The lot right across the road in this particular situation is not big enough to build a home on so there's never going to be a home on there, it's government land, and there's never going to be an obstruction to our view of the lakes, you get these gorgeous views at the front of the property, you also get a nice big backyard at docks on the crown lands is great, great big, beautiful forest river to go hiking it, there's also a public access dock right down the road where people can launch their kayaks, which for Airbnb guests is all they're gonna have, they're not gonna have a CD or a motorboat or anything like that.

We have some kayaks there the property they can use, and so they're able to launch those. And the downside of being on a lake front is that you're typically going to pay a lot higher property tax. And we don't have that we don't have that additional property tax of being lakefront because we're not actually on a lake. So there's a huge advantage to us without any of the downside.

Again, it's just a property that was a little bit less desirable to the rest of the people that are buying these properties, that typical buyer. And so we had a lot less competition, but we still got all the upside, we get the upside of being able to do renovations to get the property exactly the way that we want it and build instant equity. And we have the advantage of being right near the water with these beautiful views and the access that we need. And we want for the property. But without any The downside of the additional prices for the property tax additional asking price for how much more the property's gonna be worth if it was just a couple feet across the road.

And so now we've got all these advantages. And that's a big portion that was able to make our income numbers as strong as they're going to be. Our income numbers that we're projecting are actually based on a very, very conservative numbers from 2018 and 2019, before this area saw a spike from the pandemic. So now we're going to be able to really have some great income numbers when you compare them relative to the actual purchase price of the property. And ultimately, that's all that makes up cash flow is just your income over your expenses, right.

And so that is basically what it all boils down to is number one, finding a really fantastic deal. And number two, making sure that it's going to produce really great income and in order to make sure that it produces really great income. You want to find a property that's uniquely desirable on Airbnb that is going to provide guests with exactly what they're looking for on Airbnb. And if you can find those elements that aren't necessarily as attractive to the other people that are looking to buy properties in that area. That means you're gonna pay a lower price.

So it's gonna be more, it's gonna be a lot easier to find a great deal. Now, this can be applied in just about any market because the really cool thing is that a lot of times the properties that are the best to invest in for Airbnb are not the most desirable ones for people that are buying their own vacation home. A lot of people are investing into short term rentals. Now, there's a lot of activity going on. But there's a lot fewer people that are finding really fantastic deals, they're going to be able to cash flow to this extent.

So again, if you want to learn more about all of our tips and trips for different markets for exactly how to get started investing into Airbnb properties, and how to do it in a way where you're gonna get fantastic deals, be able to optimize them buy the right property, it's gonna be a real winner, so you can reach your financial goals a lot faster with a lot less legwork, then just click the link down below schedule that 15 minute discovery call with me and I'd love to talk more about what your goals are and see if we can help. Again, just click the link down below to schedule a quick 15 minute chat before they all fill up.

I'd love to talk to you more about this in the coming weeks here as long as the schedule is not filled up. So make sure you click that now and get yourself scheduled and I hope this has been a great video for you. I hope you've gotten value from it and I'll see you in the next one.