How Many Properties Do I Need to Airbnb Full Time?

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What's up guys, it's James here and in today's video, I'm going to talk about how many properties you need. In order to Airbnb full time, I'm going to run this scenario in two different options. So whether you decide you want to invest in properties for Airbnb, I'm going to tell you how many properties you're going to need in order to do it full time. Or if you want to, instead of purchasing properties for Airbnb, you want to manage other people's properties on Airbnb, I'm also going to break down for you how much how many properties it's really going to take in order for you to do it full time. Now, if you're interested in actually implementing either one of these strategies, then we have links in the description down below just a free training that I'd highly recommend you check out, you'll see one training that's linked down below there, that's going to teach you how to invest successfully in short term rental properties generate massive cash flow and build long term wealth. So if you're interested in investing in properties, definitely check that one out. If you are interested in managing other people's properties, there's also another training and linked in the description down below, that's going to teach you how to earn a full time income managing other people's properties on Airbnb. And these are both different areas of Airbnb that I have direct experience with and a lot of it, so I highly recommend you check out those trainings, I'm going to walk through our whole step by step system. And I've built six figure incomes from both of those methods. So I highly recommend you check them out, we're also gonna give you some free tools, in addition to the training in either one of those trainings, so just make sure you check them out, again linked in the description down below. So let's jump into it. And let's first talk about investing in properties, how many properties you need to actually purchase in order to replace your income in order to do this full time. Now ultimately, that depends on the type of property, you're investing in the size of property that you're investing in, the returns you're getting, and how much you need to be earning in order to feel comfortable doing something full time. But I like to use $70,000 or so as a good rule of thumb. That's generally where people tend to be pretty happy going full time is around the 70 to $100,000 range. So let's for a rule of thumb use about $70,000 For how much we want to be earning. Now in order to do that, you're going to want to buy probably one or two properties. Now that's going to ultimately just depend on how much the properties you buy are going to generate, which obviously if you buy a less expensive property, it's likely going to generate less gross cash flow each year than a larger property. And ultimately, cashflow is the one thing that you want to really focus on if the goal is to replace your income and to do this full time, because although in real estate, you are also going to be earning a additional return through your equity paid or your principal pay down building equity on your mortgage equity in the property. And then also through appreciation, you can't actually spend that money, right? That money is locked up until you either refinance the property, take out a loan against the property or sell the property. So that's just equity that you have in the property. But the cash flow is the money that you can actually spend, you can actually take it to the bank, you live off of it, everything else. And so I broken down in much more detail on this channel in another video, a property that we bought about a year ago now. And that property in its first year is going to bring in about $150,000 in total revenue. And of that just over $70,000 is going to be actual profit, we're probably actually going up closer to 80 or 90. But to be really conservative, I'm going to stick with about $70,000 There. Now that property was a $500,000 property that we then renovated the property. So all in again, I've broken this down in other videos, but we put about $165,000 into purchasing and then renovating the property. And then you're looking at about another $30,000. So to furnish the property. So all in about just shy of $200,000. Now that that's under a traditional scenario, we actually were able to get 5% down on this property. And there are different options where you can get five or 10% down, which obviously makes a huge, huge difference, that would bring the total investment down closer to about $100,000, which is a lot more feasible for most people, you can also refinance, to pull all of that money out after a couple of years, once the property has been renovated. And it's also built up some natural appreciation and some principal pay down from your payments on the mortgage. So within two to three years, you can typically get all or most of that money back out of the property through a refinance. And you'll get again $70,000 A year from actually owning that property and operating it as a short term rental. So if you were to buy one property that was similar to that one, after about a year, you'd be able to safely have that supplying you with a full time income. So that's pretty cool. You can do it with just one property. And so I always tell people, it's just such a superior method for investing if your goal is cashflow, because short term rental is just cash flow like crazy. Now on the flip side of that if you don't have that money, you know a lot of people I understand don't have 100,000 $200,000 just lying around ready to invest. And so in that scenario, I really great option is to actually start managing other people's properties on short term rental There are also options to get into real estate deals with no money down and we talk about that so if you really do if you're really interested in more so in investing in properties and that is a potential route, but I honestly wouldn't recommend starting if you have less than that. Have $50,000 saved up. And so if you do have less than that saved up, then really the best course of action is going to be to start managing other people's properties on Airbnb. And the big benefit here is that you don't have to pay any money out of pocket to buy rent or furnish any properties because I teach you how to do it with a percentage management fee model. That's the model that I used to drive rental arbitrage. And I've put together a bunch of other videos on this channel explaining why that is a terrible business model. But management fee is a really great model. Because it's low risk, you're not putting any of your own money into you're not risking anything but your time. And with the right training the right resources, like we have in the description down below, you're not really risking not because you have a proven process for success. And so when you start managing properties, you're generally going to earn about $800 per month as a rule of thumb, maybe 700 to $800 per month. For each property you have under management to get to $70,000, you're going to want to be managing about five or six properties. So again, it's pretty doable to get there. And just, you know, a couple of months of really focusing on the business and growing, you're going to get to about 567 properties, you're going to then be at $70,000 a year, so you'll be able to replace your income. And the other big benefit there is it also gives you a leg up when you decide that you want to invest if you decide that you want to invest into short term rental properties. My own experience with this is that I started managing other people's properties on Airbnb, and then quickly realized that certain properties that met certain criteria would do way better than other properties on short term rental. And so naturally, I want to buy those types of properties because I saw that they got superior returns to any other type of property. And then once I did, I was able to identify these huge knock out of the park homerun success properties that allowed me to scale my investing much more quickly and earn really, really great returns on doing so. So those are the two kind of options option one is to actually buy a property if you have the means to do so I highly recommend it and you're only going to really need one or two properties to be able to replace your full time income. If you don't have that money set aside right now and you want to build up that cash flow while also gaining experience get your you know, sort of dip your toe in the water so to speak with short term rentals that managing other people's properties is a really great option as well. Even if you don't want to later on down the road invest in properties it's still just a fantastic business model that I highly recommend for anyone that's looking to build cashflow. And so that model you'll need about five to seven properties in order to get to that $70,000 A year mark now again there's links in description down below for both of those models training on exactly how to implement them execute them we're gonna give you some free tools as well so I highly recommend you check those out. I'd also love to know if you have any thoughts questions concerns for me, let me know in the comment section below. If you did get value from this video you enjoyed watching it then please take a quick second and give this video like it helps me out tremendously. I'm really trying to grow this channel and reach more people and share how amazing short term rentals can be as an opportunity for both cashflow or long term wealth building. So I'd highly recommend that you just hit that like button I would appreciate it very very much. Last but not least, I know a lot of you guys because I checked my YouTube stats here. I know a lot of you guys are not yet subscribed to the channel. So if you're not subscribed, make sure you hit that subscribe button so you can stay up to date. I post two new videos every single week and I would love to have you in the next one.