Making $25,000/Year Cash Flow by Buying the Worst Rental on the Best Block
Summary
This article discusses an investor who bought a run-down property in a desirable area and turned it into a successful short-term rental. Hosts can learn from the story about the importance of location, embracing renovation projects, and leveraging marketing skills for STR success.
Key Insights
- •The property was purchased sight unseen over FaceTime due to the favorable price and location, highlighting the importance of quickly assessing deals.
- •The investor used their marketing background to create a short-term rental with a focus on providing exceptional experiences for guests.
- •The investor's initial long-term rental in Chicago generated $800/month in cash flow, demonstrating the potential of a well-located property.
Action Items
- ✓Consider investing in a property in a desirable location, even if it requires renovations.Effort: mediumImpact: high
- ✓Use your existing skills, such as marketing, to differentiate your listing and create a better guest experience to boost occupancy and revenue.Effort: lowImpact: medium
Tools & Resources
- →Steadily: The article mentions Steadily, the landlord insurance company.
- →The Real Estate Rookie Podcast: The article mentions The Real Estate Rookie Podcast.
- →New Western: The article mentions New Western, a company specializing in wholesaling properties.
Common Mistakes
- ⚠Overestimating renovation costs can lead to financial challenges.
More from Growth & Marketing
Airbnb is offering a $750 incentive to attract new hosts to list their properties for the World Cup. This move aims to ensure sufficient accommodation for visitors during the event. This initiative highlights the importance of short-term rentals in accommodating large-scale events and provides a financial benefit for new hosts.
Marriott and Wyndham's adoption of agentic AI is putting pressure on Online Travel Agencies (OTAs), potentially cutting them out of the picture. However, analysts believe these fears are overstated because most hotels are independents. Booking Holdings saw its share price drop 30% due to these concerns. Independent hosts should keep an eye on OTA strategies to stay competitive.
Airbnb is incentivizing new hosts with a $750 bonus ahead of the upcoming World Cup, likely to boost supply during the anticipated surge in demand. This initiative aims to increase the number of available listings. New hosts can capitalize on this program to maximize early revenue.
Curated by Learn STR by GoStudioM