How to Find The Right Property for Airbnb (in any market…)

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James Svetec 0:00 What's up guys, it's James here and in today's video, we're going to talk about how to find the right property for Airbnb in any market. Now in an upcoming video, I'm actually going to be revealing to you guys how we're able to find the best possible markets for Airbnb in all of the world and all of Canada and all over the US. And spoiler alert, it's because we spent over $10,000 on Airbnb data from Aaron DNA and we got their best places to invest report, we've got access to the top of the line report on the absolute best places to invest your money in short term rental property. So if you're interested in working with our team to help you find the best places for you to invest, help you to succeed with short term rental investing, then the first step is checking out the link in the description down below. And checking out the free training that we put together and the free analysis spreadsheet that we're going to give to you just for checking that out and for signing up for that training. If you're interested after that, you will also be able to schedule a free a one on one strategy call with our team where we can help you to brainstorm and strategize so that you can successfully invest in short term rentals whether you are just starting out and brand new, whether you've been thinking about maybe dabbling into the short term rental space converting some long term rentals starting to invest in short term rentals, or whether you're a full blown short term rental investor and you want to be able to scale your portfolio more effectively, more profitably. Anything wherever you're at on the spectrum there, make sure that you check out the link in the description down below access that free training, make sure you get in touch with our team who would love to help you invest successfully in short term rental properties. That being said, let's go ahead and start talking about specifically how to pinpoint the best properties in a market for Airbnb. Now, there is a bit of a nuances a lot of people I see going out there and thinking that just any property in a given location will perform well on Airbnb. But that's really not the case, I've seen people make the mistake of buying a property that ultimately they spent X amount on. And for that amount, they could have gotten a way better property without spending any more money, they could have gotten away better property that would have performed way better on Airbnb and gotten them way better returns and I'm talking, you know, 2030 4050, even 80% More that they could have gotten how they just pick the right property. And so what you need to do first off is do your research on your market. Now again, if you want to learn exactly how the step by step process, there's a link in the description to a free training on that. But I'll give you the bird's eye view here is it basically you want to get data that's going to be your biggest friend when you're trying to figure out which types of properties in which property specifically to purchase in a given area. And in that data, you're going to be able to find some sort of hidden secrets. Now the first one is you're going to be able to figure out which types of properties in general perform the best. So for example, if you're in a lake, let's say we've got a I've got a member that I work with in upstate New York. And so there's a few different options. I've got another member and Trump law. And there's a few different options for types of properties. Is it going to be by the mountain is going to be by the water, you know, is it going to have a big backyard is it going to be in a subdivision, what type of property and the sort of setting of the property, that's going to be your first stop when you're looking at the data, figuring out which types of properties tend to perform the best. Once you've gotten that figured out, the next step is going to be to find what I call the gap. Now the gap is basically a phenomenon, let's call it that I've found to exist in short term rental performance where the the cost increase in purchasing a larger property does not go up multiple way. So it's not like when you buy a two bedroom property, it's going to cost you twice as much as buying a one bedroom property. Nor is a four bedroom property going to cost you twice as much as a two bedroom property right, you'll generally see a small increase, but it's not going to be proportionate, it's not going to be doubling in price as you double in size. Because obviously you've only got one roof still, you've only got one HVAC system, you only got one whole, you know, water system. So you don't have to duplicate all of those big fixed expenses with buying a property. Now, the other thing that I've realized in tandem with that, and this is what I call the gap is that oftentimes you will get a multiple by increasing your bedrooms on Airbnb, but it really usually happens in one specific jump. And that's what I call the gap. So for example, what I mean by that, so let's just get very real so you can understand what I'm saying here is that if you look at any given area, there's going to typically be if you look at the data, a gap where the amount of earnings you can make the amount of bookings you can get in a given year jumps dramatically as soon as you get that one extra bedroom. So you might see okay, well one bedroom properties perform Okay, and two bedroom properties probably a little bit better. Three bedroom properties perform a little bit better than that. But then Whoa, as soon as you get to that fourth bedroom, suddenly the numbers really spike And the cool thing is, like I just mentioned, the property value is not going to just spike. So what's going to happen is that you're going to find it varies by area. But you're going to find that usually somewhere between three and six bedrooms, you're going to see a big spike in how much the listing can bring in in a given year. And you will not see that same comparable spike in the property purchase price. And so what that results in is by buying those properties that exist in the gap or after the gap, that is going to give you an outsize return on your investment because your revenue is going to be way higher, but your purchase price is not going to be substantially higher than buying a slightly smaller property buy one less bedroom. And the reason for this is pretty simple. And in different areas, there's always going to be different levels of demand for different types of properties. But what I always like to tell people is that when you buy a larger property, you're opening yourself up to a greater portion of demand. And as you increase the size of your property, there's less and less competition for the demand in that sort of space and property. So what I mean by this is that if you have a five bedroom property, you know, let's say that it can accommodate 10 people, well, you can now accommodate groups of 123456789, or 10. All of them, if you have a four bedroom property, you cannot accommodate, let's just say you cannot accommodate those groups of nine or 10. And so you don't have as much demand for your property. But the cool thing is, and the reason that the gap exists, that that big spike is that if you have a very small number of properties in a given area that can accommodate groups of nine or 10, then obviously, the numbers are going to really shoot up for those properties that can because there's this demand without any supply. The other cool thing is that as you increase in size, you generally just get more revenue, because larger groups are willing to split the cost amongst themselves. And so they can justify a much higher nightly rate that they're going to spend on the property. So that is my number one tip. Now obviously, you want to start with buying the right type of property. And then if you combine that with knowing the numbers and being able to identify the gap in your specific market, then you're going to really be cooking with fire, you're really going to be able to find the best properties. Like I said, I've seen people go and just not realize this and go and buy a four bedroom property. And when they could have just spent a little bit more or even gotten a five bedroom property for the same exact amount of money and gotten way way better returns, and they just didn't realize it. And so if you want to maximize your returns, you really want to get the best possible cash flow, the best possible returns and really kickstart that compounding effect of building your long term wealth, and you want to make sure you use your money on the best possible property. And the way to do that is by understanding your numbers understand exactly what type of property look for what markets are best to operate in all that sort of stuff really just knowing your numbers before you actually do the deal. So again, if you want to learn more about exactly how we invest so successfully in short term rentals, where you want to work with our team directly to have us help guide you through the process and really hold your hand and make sure that you don't make any mistakes you don't forget anything and that you really make sure you cut your your short timeline to success in half. Then make sure you check out that free training that's linked in the description down below. And make sure you reach out to our team because we would love to work with you and help you invest successfully in short term rentals. I hope you got value from this video. I hope you found it insightful if you did let me know in the comment section drop a like on the video it really does help me to grow this channel and reach more people and be able to help more people so please hit that like button if you did enjoy this video. Otherwise, have a great rest of your day and I'll see you in the next video.