All Forum Posts by: Monica Mejia

Hi Daniel! I agree with most of these comments - Airbnb \ STR's aren't dead. I think that as long as hotels exist, so will STR's. Now, are there people that own a "dead" Airbnb, 100%. It is a business at the end of the day and if you don't run it properly or don't take care of your guests, you're going to fail.

Let's say that all STR's get banned, what then? Well, the reason I love STR's so much is because of the number of exit strategies that exist. You can switch to mid term rentals, rent room by room, long term rent, etc. As long as you are able to pivot with the times, you'll be okay!

I believe what you're interested in is a rental arbitrage. This is when you rent a property and then put it on Airbnb or other STR sites. I have been running an arbitrage in Colorado for about a year now and it generated about $90k in revenue. I got mine through a company called BNB Leverage. They found a property for me and got the green light from the landlord to operate a STR. My experience was really great.

Hi Anibal! I believe it really depends on the market you're looking to arbitrage in. This is a great opportunity to cash flow and get you on the real estate investing path, if that is your goal. It took me about 10 landlord conversations to find one that was on board with this model. I actually ended up working with a DFY arbitrage program that finds the right property, negotiates the least terms with the landlord, and even has an interior design department to set up your listing. It ended up being very minimal work on my end, which I truly didn't have time for. My arbitrage in Colorado is now generating about $7k - $12k in revenue with $2,700 in monthly rent. 

Hello Jason! What type of investing are you looking to start with? Colorado has a great short term rental market with 3x the return you'd see in LTR's. It helps to have a team in the state you're looking to purchase because of the resources and vendors they've already built connections with. For example, my team specializes in the Colorado STR market and we help buyers every step of the way from finding the right cash flowing house to setting up, finding cleaners, handymen, and launching your Airbnb. 1/3 of our buyers are out of state so we really try to make it as easy and smooth as possible!

Would love to know more about what your REI goals are!

Hi Anthony! I believe it is completely about the experience you provide for your guests and there are 3 components to a successful Airbnb. Of course these are not the only components but they do have a heavy impact!

1 - Furnishing. I am sure you're well aware of the importance of furnishing the place with style and comfort in mind. Some of the things people miss are as simple as having white bedding. This goes a long way. Think of hotels, you want to give off the same clean and crisp feel. Then the photos.. If you're going to take the time to set up and launch your listing, it only makes sense to go all the way and hire a professional RE photographer.

2 - Listing Optimization. Going back to photos - The first 5 photos in your listing are your MONEY shots. Instead of the first 5 being different angles of the kitchen and appliances, make sure they highlight the best amenities and brightest spaces. The description is where you'll want to add proximity to restaurants and entertainment. You can also add a physical board or sheet in the property that highlights all of the best to-do's. 

3 - Hospitality. It's all about your guests feeling like you're going above and beyond to take care of them. Provide games for guests of all ages. Having feminine products is always going to leave a great impression. Extra toiletries, GOOD quality hair and body products, offering to order them a shuttle to and from the airport, etc. These are all small acts of service that will really go a long way with your guests and most importantly, lead to 5 star reviews. Creating a sense of convenience for your guests is always the key. 

These are the top 3 things I focus on to create a memorable experience for my guests. Hope this helps! 

Hi Kaleb! I, unlike most of these responses, feel that arbitraging is such a great stepping stone to get into the real estate investing industry. When I was learning about STR's I did not have the capital to purchase an investment home so Airbnb arbitrage allowed me to get into the game with a much lower investment. Yes, you lose out on the appreciation and other perks of owning a home but it can definitely lead you to that opportunity. It depends on what your long term goal is. I started with one arbitrage early last year and the cash flow allowed me to purchase a STR investment property this year. The nice thing is also that you don't have to worry about any big ticket maintenance issues because you're a tenant.

Hi Andrew! Exciting to hear that you're looking to get into short term renting. 

The first step I would take is making sure that Blue Ridge is a STR friendly are. A few ways you can find that info: Search the internet, call the county, work with a STR friendly broker who has the information for you. I know 2 really great agents in GA that specialize in STR investing and own/ operate their own Airbnb's. Message me if you'd like their info (:

Once you are aware of the regulations use platforms like AirDNA, Mashvisor, and Airbnb, to see what your potential homes are projected to generate. You can also see how other STR's in your area are performing and what their reviews are to get a better understanding of the traffic. Again, having an investor/STR friendly agent on your side will make this a lot more smooth for you!

Hi Rich! This is a great question. Here in the CO market we are seeing an average COC return of about 15% - 25%. Just to give a reference point, the COC return for investing into the stock market is about 10%.

Hi David! So I use the platform, TurnoverBNB, to find cleaners in my area. All cleaners on this app are specifically for Airbnb's so they should have a great idea of what your needs are right away. You still want to make sure you vet these cleaners and have them do a test trial before you officially bring them on. I found a cleaner that would be a great fit and then had her do a trial clean before I launched to make sure it was executed well. You can also use this trial to give them any feedback so they can be well prepared for an actual guest clean. 

TurnoverBNB also has a feature that allows your booking calendar to integrate with your cleaner so they know exactly when a clean will be needed. This will save lot's of time on your end!!! 

I've tried to build a great relationship with my cleaner which has been helpful because she now helps me with restocking and a few other 'property manager' duties. I would 100% recommend doing the same with your cleaner if you don't plan on having a property manager right away.  

Hi Nikki! This is the best place to ask for some knowledge and support, so congrats on taking the first step! 

I would lean into what your goals are with investing into RE, wether it is for STR's or flips. I personally started with the same vision of getting into flipping and I ended up jumping into STR first.

The most important thing is figuring out what market you'd like to be in and wether or not they are STR friendly. Most people believe that you need to be in a vacation destination to get the highest return when in reality, these areas are probably the most regulated. For example, I own/ operate 2 STR's in Colorado that have generated a combined $180K in revenue this year. Although they are not in highly sought after vacation areas, I get so much traffic from visiting families, hikers/ skiers, and concert goers. Not to mention that Colorado is said to be 'the next silicon valley', so lot's of companies are relocating/bringing their employees out every month.

The other component you'll want to consider is how much capital you have available to purchase, furnish, and launch your STR listing. Typically for a 3-4 bedroom you'd be looking at about ~ $30k/$40k in furnishing. CA most likely is not an are you'd want to start because of the purchase prices. Your cash on cash return would be scary low compared to a market like CO..

It is really intimidating starting this all on your own so if you have any other questions on where to start, feel free to send me a message (:

Hope this was helpful!

Hi Taabish! Exciting to hear that you're jumping into the re investing world!
I would 100% say that finding a realtor who is also investing into the same model you're interested in. It may take you a few coffee chats to find one that you feel comfortable moving forward with but this is going to play a huge roll in your investing journey. 

I started out by listening to the BP rookie podcast and connecting with people at networking events/ conferences! I now currently own / operate 2 Airbnb properties in the state of Colorado. So if you're interested in the STR / MTR investing model I'd love to share my knowledge (: