Air BnB for cash flow
Do you own an Air BnB property, or are you contemplating getting into this business?
Before you answer, lets get started who I am and what I do, well first, you may be thinking, you're an insurance broker".
And yes correct, I am, but what anyone who knows me personally, knows that my wife and I are also full time Real Estate Buy and hold Investors (meaning for those who don't know, we buy Single Family Homes for long term hold, and rent them annually to long term renters).
Now I know what some of you are thinking, is that really profitable, and the answer is yes, if you are in the right areas and or states.
So what does this have to do with Air BnB?
Well, that's what I am about to tell you, my wife and I never really looked into Air BnB, because we heard more horror stories than positive stories, but I guess we were listening to the wrong people, and I know some of you can relate to that?
Well that was until, we decided to plunge into the manufactured home scene, HUH?
Yes we made the crazy decision, we want to invest and get experience in the manufactured home market, here in California, why because that market has been talking off the last 12 months or so and still getting hotter.
Let me ask you, would you sell everything in your home town by the ocean and buy a brand new manufactured home in the desert?
We did, and it came with mixed emotions, but so far it has worked out really well, it's been an experience, and boy has it taken us out of that comfortability trap we were in. (are you stuck in that comfortability trap, stuck in a routine, have you become complacent?) For us yes we did.
So where am I going with this, we moved into a manufactured home resort, and this resort has become very popular (just and FYI, we are going to sell our new manufactured home for a nice profit by the way), so back to the subject, while here on the resort, we discovered what they call Park Models, and for those who are not sure what a park model is, it is also known as a Tiny Home, average size 400sqft. So we investigated, the homes are selling like hot cakes, and not so much for people to live in but they are turning them into Air BnB Rentals. Remember I said this resort is getting very popular, popular with vacationers looking for new experiences without the huge costs. So we did some digging, it turns out people are booking form not just California, but other states and even Canada, they are booking theses Park Models from 2 to 7 nights, for a short term stay. Oh did I mention this resort has natural spring waters, so yes it has 4 pools and 8 jacuzzies, it's close to popular hiking trails (i.e. Joshua Tree Park), surrounded by great cities with great restaurants, and other amenities.
Anyway back to the subject, we decided to buy a Park Model, $54,000, we furnished the home and we gave ours a coffee theme, yes a coffee theme, everyone relates to coffee, and we are now renting it out to couples with one friend or couples with 2 small kids, and here's the great news, all the Air BnB rentals here are booked up to about 70%, and profits for now are good.
So, yes there are opportunities for anyone to invest and bring in the extra income and hold an asset, and that brings me to my post, well since I own an Air BnB now, and know the business, maybe I should find out more about the insurance programs available.
What I found guys, there are not too many programs out there and even less for Tiny Homes, but I have found a few, and a couple that are tailored to this industry. So if you need insurance for your Air BnB, or insurance is holding you back, we may be able to help you, our programs are available in CA, NV and TX.
So hit me up for more info on the insurance, or if you would like more info about getting into Air BnB, I am more than happy to have this discussion with you.
See you in the next post.