Blue Print Friday

How this Airbnb Business makes over 3M a Year

Learn the ins and outs of how this entrepreneur started his Airbnb business and is now making over 3 Million a year

Airbnb Explained

Similar to how a hotel works, Airbnb relies on people booking your property for a couple nights a month. Typically Airbnb’s profit more than rentals, but require more upkeep.

How Much an Airbnb Makes Vs Rental

A good example of A tradition home vs what a airbnb could make is if we take a look at an example of a home that cost 500k

After down payment and closing costs the mortgage comes out to $3,200. With a traditional long term rental you can rent that home for around $3,500 a month cash flowing $300.

With Airbnb after assuming operation costs, occupancy rate, and the average daily rate($300). That Airbnb would cash flow around $2,000 a month.

Operation Cost

Some operational costs to consider when considering becoming an airbnb host are towels, professional cleaning, snacks, trash, furniture, Wifi, Tv, and Utilities.

How they got started

Sid and Eva were able to buy their first home using an FHA loan putting down just 3.5%. After living in the home for one year they decided to list it on airbnb and continued to accumulate properties.

Airbnb Arbitrage

There’s a way that you can get started hosting on airbnb without evening owning a property. It’s called Airbnb arbitrage, and it’s when you use someone else’s rental to host on Airbnb. We’ll cover this more in depth in a future newsletter and how you can get started with little money.