The first step in building a short-term rental business is choosing the right business model. Do you want to lease properties and then list them on Airbnb? Would you prefer to partner with owners, managing their STR properties for them? Or are you interested in owning the properties yourself and growing a short-term rental investment portfolio?
Tim Hubbard is the co-founder and CEO of Midtown Stays, a company that invests in and manages STR apartments in thriving midtown and downtown areas. Since he started the business in November of 2015, Tim has built a portfolio of 60 properties (32 of which are vacation rentals) in Sacramento, Memphis and Oklahoma City, accommodating 10K-plus business and leisure travelers with an average review of 4.8 stars. He is also an active member of our elite STR Legends Mastermind Community.
Click on the video below to watch and listen to this podcast episode:
On this episode of Get Paid for Your Pad, Tim joins me to discuss the ownership model he chose for his STR business, explaining why he suggests exploring markets beyond your home city and how to get financing for real estate investments. He shares the driving factors behind his success and offers advice on communicating with your team and taking advantage of OTAs beyond Airbnb. Listen in for Tim’s insight on the benefits of investing in studio apartments for short-term rental and find out if the owner/operator model is the right fit for you!
Topics Covered
The three basic short-term rental business models
- Ownership
- Management
- Master leasing
How Tim’s business is structured
- Owns portfolio of 60 properties (32 STRs)
- Sacramento, Memphis and Oklahoma City
What Tim wishes he had done from the start
- Regular, face-to-face communication w/ team
- Send negative reviews to cleaning staff
- Focus on other channels (not just Airbnb)
What a mentor could have helped Tim with early on
- Explore markets beyond where he lived
- Connect with brokers for off-market deals
Tim’s advice on getting financing for real estate
- Don’t be intimidated by rejection
- Ask for referral from broker or agent
- Try small local bank or credit union
The benefits of owning STR studio apartments
- Best returns, fewer expenses
- Fewer problems w/ guests
- Costs less to renovate
The driving factors behind Tim’s success
- Motivation
- Consistency
- Education
Tim’s advice to aspiring STR investors
- Don’t try to time market (invest for cashflow)
- Better to buy and wait than wait to buy
Connect with Tim
Resources
The Slight Edge: Turning Simple Disciplines into Massive Success and Happiness by Jeff Olson
Email jasper@getpaidforyourpad.com