Airbnb for cash flow and lifestyle experience
Airbnb Lifestyle and Vacations
I’ve been talking a lot by phone and on the clubhouse app with close local Minnesota real estate investors about Airbnb, vacations in tropical places, escaping the cold whether, monthly cash flow and lifestyle experiences that create amazing memories.
In the past many investors have just gone for a quick 4-5 day family vacation where they quickly unpack and repack, check-in and check-out and back to the frigid cold of Minnesota.
But now many investors that I know from Minnesota are buying places out of state, or are close to doing it for the warm weather, getting out of -40 degree windchill and not dealing with federal and state taxes by living in advantageous places like Puerto Rico and Florida due to massive tax savings.
As they learn to live 30 to 180+ days a year on warm tropical places near the ocean they learn to run a business that’s remote and usually dependent on the phone, and or technology and the WiFi.
I realize that many people are busy either tied to their daily jobs, or tied down with being self-employed and can’t get away for too long.
Some have figured out how to live in Florida for 3-4 months per year and escape the cold. Due to the covid shut down many now work remote, use zoom and their jobs, day care and school for the kids are all remote. There is often more flexibility in their schedule to work from any state.
I’ve learned to target 3 different types of people and conversations for now:
Buyer, Seller, Attendee
Sometimes they may be 2 or all 3 of these.
Airbnb Investor Buyer-
An investor buyer may be new or experienced and be interested in earning cash flow from Airbnb properties, so it’s a way of life for them and their main focus.
They look at the numbers and they may get 300% more rent per month than a long-term renter, and can expect a bit more hands on with renter stays 3 days to a month at a time it’s more for short-term stays.￼
To invest and buy you have a few options of how you control the property.
For financing it looks as though most of the market in lending is focused on very high credit scores.
Also keep in mind this is likely owner occupied homes and if you are house hacking or using FHA and down payment assistance you are probably looking at easier credit and less friction to buy.
If you bought a duplex or a big home with a mother-in-law space or private entrance that financing would be easier and you could likely get away with the owner occupied lower credit and down payment requirements.
With an investment property or more risk to the lender since you aren’t going to live there you would likely need 15-25% for a down payment on an investment property.
Because you put more down you would have a lower payment, more cash flow and a better cash-on-cash return meaning that you’ll pay it off sooner.
A lot of the above is based on getting traditional financing with a lender and a long-term buyband hold
You can s l so control the property through a lease option, sandwhich lease option, option, subject to, contract for deed, sublease, Seller carryback, Seller financing and probably other ways as well.
Let me cover some of the non-bank creative ideas in the seller section below based on how I would want to structure or buy the properties.
The person structuring the deal gets the best deal, and for those who may have it assigned to them after being negotiated they wouldn’t end up with the same type of deal.
For example if I negotiated with a motivated sellers amazing seller financing terms, the investor buyer can expect to pay a premium over the negotiation that I got.
Seller financing is a great way to create a win-win for everyone. As an investor buyer I would prefer to talk to a motivated seller that’s in a few unique situations.
Those situations are that they own the property free and clear, they want a retirement change in lifestyle, they are vacant, or they are having a financial hardship. It can also include probate, making two house payments, moving out of state, lost jobs, etc.
When it comes to seller financing often a seller can get a price that makes sense and the terms can be beneficial for both. Even better is if the interest rate can be 0% with a 100% principle reduction. With a 10 year balloon this allows the investor to be protected on downside risk.
I love all of the variables involved in creative real estate and how there are many levels to it and how price is just a small part and all of the other variables and terms can really make the deal happen.
A seller who is tired of being a landlord and managing the property may offer great terms while the new investor manages the property as an Airbnb for great cash flow and pays off the property over a period of years.
A property that’s near the ocean or on a channel or river where big boats are allowed are interesting properties to me to talk about.
Sellers who can’t find buyers in a slower market should be open to seller financing in order to sell their property.
To me an attendee is anyone that attends lifestyle events that I often coordinate with investors, from late night parties, networking events, at warehouses, bars, penthouses, or on boats.
This often includes music, sometimes food and beverages and sometimes great weather like on the boat on lake Minnetonka starting at Maynard’s and sometimes lord fletchers.
Often the sponsor either gets some donations or maybe an investor themselves in the markets. It’s about building relationships.
The idea is for the relationships to turn into business and cash flow for the business to keep doing more business as the people invited that show up have value for the others.
Value comes in many ways from investing in projects, to hard money, to having a boat, an extra space, to connections and introductions to others.
I personally focus on alignment for people to connect on a deeper level of how they can mutually benefit each other and each make money in business ventures on different levels.
If you are a good fit as an investor, even better if in the real estate industry, then reach out to me on Facebook or messenger and we could possibly get you out to an event some time or out on the lake to enjoy a lifestyle experience.
At some point enough will be in alignment to have enough investors connect in Fort Lauderdale, Miami, Naples, Tamp in Florida, or in Puerto Rico, or the Florida Keys.
Many possibilities for connected experiences exist with other investors when we are in alignment on the thinking and its cash flowing for someone to coordinate it through Airbnb with the right mix of beds to bedrooms and space.
The attendee in the tropical locations for the Airbnb’s should like night life, possibly walking, events, networking, different food experiences, and just relaxing.
Those that stay and travel together for events sholuld ideally get to know each other ahead of time locally when possible before staying together in an Airbnb for 5 to 30+ days for investor lifestyle experience.
When I own or control Airbnb I would accept people with vacation stays from the app, but would also have a separate situation where there were investor events with people I knew much better that I was in alignment with.Follow Me