All Forum Posts by: Evelyn Badia

Nothing was figured out.. I bought this as my primary residence and it became an Airbnb went my career as a television commercial producer took a dive. Airbnb became my job. After 8 years of living with strangers, I decided to go back and forth to Puerto Rico. 

New York and Airbnb made a deal that hosts information will be shared unless you host 30 days plus. I can still rent like that but the ROI isn't the same.

I'm renting an apartment in NY which I will continue to do Airbnb since I have a huge clientele of return guests, etc. Even if they're staying for 30 days. 

I'm going to 1031 the capital gain into other markets. Looking at the moment. 

I was 32 years old with tons of college loans and starting a career as a producer of television commercials.

I wasn't looking to buy real estate, my brother was looking to buy so we had the NY Times paper open. Yes, the year was 1998. No iPhone and the internet wasn't really used to search. It was the old fashion real estate section of the NY Times. 

There was this 1 bedroom Co-Op selling for 50k in my Park Slope neighborhood in Brooklyn. Before I knew it I was standing in the sun-filled living room. Looking at a galley kitchen with a space of two tiles a person to stand. I couldn't open the oven door, not even to store pots. 

But the bedroom was big and best of all I could afford it. I knew the neighborhood. And between the mortgage and maintenance, it was going to be the same as my current rent. So why not?

10k dollars why not. I needed the downpayment and closing costs. 

The horror stories started from friends. Don't buy a co-op, they are risky. Not a good investment. But I gave the buildings financial paperwork to my accountant and he told me the truth. They had issues but it was ok. 

I made an offer. But I also looked at other properties to see what they were selling for.

I borrowed that 10k dollars from friends, and credit cards. I was working and making good money so I will repay on time. 

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My mortgage and maintenance were $700.. I could do it. 

But I wanted a bigger kitchen. 

A year later another apartment became available with a real kitchen. YAY. this one for 80k. 

Take a guess what I did?

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I bought it. I had already paid the money I borrowed, plus a bit more for saying thank you for lending me. 

I rented the first apartment and moved down the hallway.. It was glorious. 

I also became part of the co-op board I wanted to know what they were going to do with the money. What was happening in the building? I loved my place

But my downstairs neighbor was hell
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 I sold the first apartment for 150k and paid 20k in capital gain taxes because I didn't know any better. 

Yes. bought it for 50k sold it for 150k in less than 3 years. 

Because of that neighbor, I sold the second apartment and bought a house. 
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The second apartment I bought for 80k and I sold for 320k.. Yes, I know.. great appreciation. 

I then bought my house for 500k and it had two apartments so I was cover. My downpayment and repairs came from the sale of the second apartment. 

Kept the house for 16 years and now I'm in a contract for 1.8 million. 

Through those 16 years, the second apartment was always income-producing and for the last 10 years, I was Airbnbing the house. Even my part of the house. 

Grossing 100k a year. In 2019 it was 130k, with two listings one home.

All because of 10k

MANY LESSONS:

Listen to those that know: I talked to my accountant to see numbers, not to friends who didn't know real estate

Pivot and change: A bad neighbor created an opportunity,

Know your market: I lived in the neighborhood so I knew that it was getting better and improving. 

Pay your debt: ALWAYS. If you borrow money pay them plus interest.. so you can go back if need to

Learn and be informed or pay unnecessary taxes.. I could have kept apt 1 or do 1031 exchange

Most important.. Just start, no situation will ever be ideal or perfect. Just think that oven in that bad kitchen.

Thank you.. I'll probably do a podcast on how $10k became 1.8 million... Because the story started with buying a 50k co-op apartment

My current 2-family Brooklyn home:

Bought it in June 2004 for 500k and started house hacking from day 1. Previous owners needed a place to stay while their new home was getting finished so they rented the second apartment. 

I lived in the duplex apartment with the garden, and I had a roommate.

The top floor apartment rented with LTR until 2011.

Then I started doing Airbnb in 2010. First in my duplex (I moved to my roommate's bedroom since he moved out) and I gave my bedroom with its own living room to guests. That cash flow 3k a month. 

The second apartment tenant moved out in 2011 and I started Airbnb.

With just those two listings I was grossing 100k a year. In 2019 it was 130k. 

Now I'm selling the home for 1.8 million.

I have invested about 250-300k in the property through the years.

The best deal so far but let's talk next year after I 1031 the capital gain.

Hosting for 10 years.. and remote hosting for the last 2 years. 

One home in NY (2 apartments in one home)
One in Puerto Rico

Set up time: Are you doing the work? shopping? setting up furniture? painting? designing?

Do it right from the beginning to avoid problems at the end.

Are you in a hurricane state?

Buy the supplies you'll need like a generator, etc while prepping the house. Not during the hurricane season when everyone is getting them. You don't think you'll get one. Ok sure.

Get smart TV, one remote.

Will you do all the turnovers or hire folks? How much will it cost you? How big is the house? 

You can spend from 1.5 hours to 4 hours depending on the amount of mess and the detail of cleaning.

Schedule a deep clean once every 4 weeks during the high season.

Schedule going through your property once a quarter to fix any and all issues. Retouch paint, sticky doors, clean gutters in the fall, change smart lock batteries.

Automate communication, I use igms (free for up to 4 listings) it was the best thing I did. 

Once a guest book it triggers my automation. (thank you for booking, you're about to arrive, how was your first night, I hope you had a good trip)

Your house manual will answer ALL the questions your guests have about your home and your town. From how to turn on the tv, to where is the grocery. My guests rave in my reviews about my house manual

Before COVID I use and believe in instant booking, it's perfect if you set it up right. 

Make sure you have a team for emergencies. handy person, etc.

Have extras of sheets, towels, wine glasses, and cups.. ohh and cutlery.

It's work but it doesn't have to consume your life if you do it right. 

Right now your colors are making you stand out from your competition. 

How can you make it Instagram-able? Fun? An experience? 

Yes, people rent your standard boring but what gets top dollar? Uniqueness. 

Don't do beach life.. do something different that will create a different experience. 

First of all, make sure you have ALL the colors or they left you the colors for any patch up you will need to do.

Ohh and work with a designer.. don't do this on your own unless you're a professional designer and get professional photos.

This is NOT your home. It's a STR..

who is your target audience?

Grandma, young couples, families?

Families? You can do a theme of a book... 

Young couple.. 

Color my life.. 

Make the accessories neutral but work with the strength of this. 

Articles about colorful and unique Airbnbs

https://www.tripstodiscover.co...

https://www.cntraveler.com/gal...

What a fantastic property. And best of luck. Unique properties like this can bring a lot of money on Airbnb. Depending on the market of course. 

Best of luck. 

Thank you for the information. 

Even later than others.. 

My mom bought a home in Puerto Rico BY HERSELF when I was around 7 years old. So the love of RE comes from her. She now owns the one next to her and is house hacking. 

I bought my first home with my then-husband at 22 and sold it right away. 

Then bought my first apartment at 30 (on my own), bought another.. sold the first, sold the second, and bought my current home. I'm now selling that house where I was house hacking and Airbnb for the last 10 years.  

Now about to 1031 and really dive into real estate. or so it feels. 

I'll do a podcast episode about how 10k turned into 1.5 million.