Many STR hosts have dreams of turning their Airbnb business into a real estate investing company. But what does it look like to buy a property for short-term rental? How, exactly, does the process work?
Eric and I are currently in negotiations to buy an existing short-term rental business, including its four Airbnb properties and the land they’re on. And we’re learning a lot along the way.
On this episode of Get Paid for Your Pad, Eric and I sit down to share what we’re learning from buying this Airbnb property, explaining why it’s crucial to start with a vision of what you want to build and be patient through the process.
We walk you through our plan to improve the guest experience and increase revenue at the STR community we’re buying, eventually refinancing the property to build personal wealth and expand our portfolio.
Listen in for insight around the top three reasons to build a STR hospitality brand and learn how you can turn your Airbnb hosting business into a short-term rental investment company.
Why it’s crucial to manage your emotions when you buy real estate
- Buy on numbers, overpay when attached to outcome
- Must be willing to let go (‘this or something better’)
How to recognize if the STR brand you’re buying is a good deal
- Value in opportunity to upgrade guest experience
- Increase revenue right away with technology, systems
Our plan to increase revenue at the STR community we’re buying
- Improve experience, raise prices by 30% to 50%
- Costs stay fixed = profit doubles
- Increase number of units from 4 to 14 income streams
The beauty of investing in real estate for short-term rentals
- Increase value of property to refinance in future
- Return cash to investors, pay selves and buy more STRs
How Airbnb hosts can become STR real estate investors
- Use other people’s properties to build hospitality brand
- Leverage profits to invest in real estate for STRs
Our top lessons learned from buying our next Airbnb property
- Develop clear vision of what you want to build
- Be patient through process vs. saying YES to everything
The top 3 reasons to build an Airbnb hospitality brand
- Lifestyle business
- Scale to sell
- Generational company (wealth to pass on)
Hostfully [Discount Code PAD]