Have you ever considered investing in short term rentals, like AirBnb? Is now a good time to start that kind of business? Did you know that there is a way where you can actually do short term rentals without even owning the property? You can invest $0 while the owner pays for everything, and you get all the profit. Join Chris Miles as he talks to Kyle Stanley about his secret to passive income with short term rentals. Listen in today as Kyle shares how he went from $3,000 per month to over $200,000 per month in just a few years, and how you can replicate the same success!
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Are Short Term Rentals A Great Investment Right Now
Welcome to our show. It’s for you, those of you that so worked hard for your money. You want your money to start working harder for you now. You want that freedom and cashflow today, not 30 or 40 billion years from now but right now so you can live that life that you love with those that you love. Most importantly, it’s not about getting rich but living a rich life because as you are blessed financially, you can create a greater ripple effect through the lives of others. Thank you for reading. I appreciate all of you who have been out there.
We talked in September that we would take on ten clients whom I do a personal meetings with. You took that seriously. It’s having to figure out whom to say no to. I appreciate you for reaching out. There are still a few spots left. Be sure that you’re like, “I’m the person now. I need to get out of the rat race. I got cash but what do I do with it? How do I get it to work for me so I can stop working?” That’s what you need to do.
Reach out to us. Go to MoneyRipples.com to do that. As a reminder, if you haven’t done this already, go to the Apple Podcasts. Rate and review us. If you hate it, don’t review us. If you do like us, go there and be sure to leave or drop a nice little review. I would love to be able to have you do that for us. I appreciate you doing that already.
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I got a special guest. This is a repeat guest.
You have been on mine many times. I’m trying to think of how many times I have been on yours. It was the one time. I’m not as cool as you are.
We have done it at least once. I know that for sure. We have done many joint podcasts together. It’s hard to remember which is which anymore. We have Kyle Stanley back with us because he is a short-term rental expert. I can’t tell you how many of you and some of you already are reading because you’re like, “I need this.” You are considering, “Should I have this business or not? Should I go into short-term rentals on Airbnb or VRBO?” Kyle is your guy.
He is out of Fresno, California. He has been doing this but he does more like the arbitrage type of investing in Airbnbs. It’s something that’s even more unique and specific. He also is the host of The Fearless Investor Podcast. He is no small beans here. He went from $3,000 a month to over $20,000 a month in a short-term rental business. He is a super host. He does amazing things there. He teaches others to do the same as you. I’m excited to bring him on. Kyle, welcome.
You had a birthday recently so happy belated birthday.
Thank you. I appreciate that.
For those of you that are reading, Chris helped me get set up with my infinite banking policy. I finally took a loan out on it for the first time event. I have had it for almost three years now and I took a loan out for the first time to be able to use it on a private money lending deal. I’m excited to finally put that into action.
When looking for short-term rental management, stay away from the big companies. Look for the mom-and-pop shops. Click To TweetI was going to ask you if it’s something used with short-term rentals but it sounds like a private money deal.
I know a person in business that needed a little bit floated for their business during a slow season. I took a little bit of money, sent it to them and they’re going to pay me principal plus interest in the next six months. I’m going to make a nice return on that.
Congratulations. I don’t know if I should announce that publicly to you.
It depends on which one. We got married and we’re pregnant. I don’t know if you know that. We found out that it was a girl. It’s a very exciting time. Life is going to change here soon.
Your days of being this newlywed couple, those days are going to be gone pretty quickly once you have that baby.
That changed pretty much week one of marriage.
We have talked about short-term rentals before on this show. My first question would be, why should someone do short-term rentals?
As a new investor or someone that is looking for passive income, it’s a great route. You mentioned there that I got it to over $20,000. That happened in the first eighteen months and that was during COVID. Our business will gross anywhere between $200,000 a month to close to $300,000. We’re keeping right around 20% of those margins. If you do the math there, that is a lot more than $20,000 a month.
It has been life-changing for me, for sure. A lot of your audience is high wealth and high net worth individuals. If you want to go and buy that second home but you want to make it cashflow while you’re not using it, this is a great opportunity. You find a manager and have them do it for you. You find that person in your family that has been looking to start their entrepreneurial career and what a great opportunity to say, “Go cohost this and manage this property for me.” Help them get a jumpstart into a short-term rental management business.
On the other side, if you’re like, “I want another stream of income. I’m bored. I’m about to retire and I want to do something to keep me busy,” this is an amazing opportunity that I turned into by using other people’s properties. I turned this into a six-figure net business in less than a year. That is tough to do in most businesses. This is a great opportunity to do that because you can go to other landlords and tell them, “If I rent it from you or manage it for you, here are all of the benefits.” It’s way more beneficial to do this for landlords versus a long-term renter if you know all those benefits. There are many things I like about this business and it continues to get more popular by the day.
I have heard a lot of people that their barrier to entry is more like, “I want to do it but if this property is not where I am locally, how do we manage this? How do I know I find the right management type company to help me do this or find another super host like you?” That is something that people are scared of. Sometimes that stops them from taking action in the first place.
I will give you a few resources for that. First of all, CohostMarket.com is a good website that people can go to. If they say, “I’m going to go buy a house in Orlando, Florida,” they can go to CohostMarket.com and see all of the cohosts that are advertising themselves as wanting to take on more properties in Orlando, Florida.
When we’re talking about cohosting, that is a fancy term for short-term rental management and property management. That’s a great place to be able to say, “I want to buy in this area. Are there opportunities to find someone that way?” If you google short-term rentals or vacation rentals in that city, most of the time, you will come up with stuff. The one recommendation I have is to stay away from the big companies. Look for the mom-and-pop shops that are running it with more than mom-and-pop. They got a manager on their team, a cleaning team and maintenance men.
They got all that but they are local or at least have that local team versus the evolves, the turnkeys and the Picasa. They are going to say that they got all the local stuff but I haven’t found anyone that had a good experience with any of those big companies because most of the time, they spread themselves too thin. They become a Jack of all trades rather than a master of one. With that, they don’t do a quality job most of the time. That’s where I would start if I was someone looking to have this outsourced.
If you rent a short-term rental from a landlord, you still don't own it. So any property issues, that's the owner's problem. Click To TweetTell us more about your strategy because it is unique from what most people do. Many people are like, “I got to drop a couple of hundred grand down payment on buying a property.” You taught me that you don’t have to do that.
The first property I bought was through the BRRRR strategy. I was able to get my first property for free, buy, renovate, rent, refinance and repeat. I put about $220,000 into this property. I refinanced it after the renovations and got all that money back because it was now worth $315,000, plus it paid for the furniture and that property was cashflowing over $2,000 a month. That’s a great investment.
I have to have a deal flow from off-market deals to be able to do that.” If I’m saying, “I want to go buy one conventionally 20% down,” if it’s worth $500,000, you’re putting $100,000 down plus closing costs plus paying for the furniture. Is it going to cashflow more than a long-term rental? It should. Are you going to make your money back faster than a long-term rental? You should.
The first time I did that, I was like, “I’m out of money. I have two short-term rentals. I can’t go buy anymore. Am I going to have to do one at a time every single year for the rest of my life?” The answer to that was no. I found out about this way to do it without owning the property where you can either rent it from a landlord, pay for the furniture, pay for everything to get set up that security deposit, now you’re in charge of paying the monthly rent and utilities and you keep all the profits.
If I make $5,000 of that property, rented it for $2,500 and I had another $500 of utilities, $3,000 away from that $5,000, my net is $2,000 on a property that I only invested $15,000 to $20,000 on. I don’t own it. I don’t own any of those major issues. If there’s a leak, the roof caves in and the foundation isn’t holding up, those are all still the owner’s problems. That was the way that I saw, “I can scale this thing quickly. I got a little bit of capital, not enough to go buy a house but I can get 3 or 4 of these arbitrage deals.”
As I got good at that and became known as the go-to Airbnb guy in Fresno, people started asking me, “I got this property. Will you manage it for me?” I was like, “I don’t know. Do the numbers work out on that? Let’s see.” I did the numbers and they are going to make 2 or 3 times more after all expenses than they would as a long-term rental. I’m going to make $800 to $1,000 managing this thing.
The owner pays for everything like the furniture and setup. I have $0 invested in these deals. I get paid to set them up because I’m providing a service to this owner to set it up and get it ready for Airbnb. That was the way that I started to blow up right around when COVID happened. People saw that Airbnb was still working well. They said, “Kyle, will you manage my property?” We went from 6 to 25 in four months. Now, we’re at pushing on the door for 70 properties 3.5 years in.
It’s a lot more scalable than buying one a year if you’re lucky.
It’s a lot more scalable. If you do it the right way and provide an amazing service, you get leads coming in. My phone rings 3 to 5 times a week with leads from people that I’m like, “I don’t know who you are or who referred you. That name doesn’t sound familiar but because I have done a good job, my name gets passed around.”
There are a lot of people that I have talked to, even personally some of these readers where they are saying, “I got $10,000, $20,000, maybe $50,000. It’s not $200,000 plus like we generally want people to have to invest if they’re going to work with us one-on-one.” Sometimes they’re saying, “Is there a way I can get there faster?” I see this being a great way to do that and be able to help build up some cash and cashflow. They can do more infinite banking type stuff too but they can also build up that cash and start doing other passive investments outside of this too.
Let me be clear. When it comes to arbitrage and cohosting, it is an active business. We can set up systems and bring in people but at the end of the day, it’s to get the properties and create those systems. I created a business, a sellable asset now if I wanted to, that has those people, systems and everything in place. It took time for me to make that passive but it’s an accelerator.
I have people that I have networked with that are stoked about the long-term rental that is making them $100, $200 and $300 a month after expenses. This is 3Xing or 5Xing that and allowing you to be able to accelerate that while using other people’s properties to get that active income. For example, if I make $50,000 in a month with this active income, in two months, I can buy a new house, whereas the path that I was on before was if I got one property per year, it would take me a while to build up that wealth. I can build up that wealth faster because I have created an active business that is feeding this machine.
There are people here saying, “How do we learn this stuff?” You educate people on how to do this. Who is the best person to do this business? What do you offer?
There are two types of people that I see get into this business. One already has the wealth or the money. They want to focus on wealth. They want to go and put their money into short-term rentals and buy them. The easiest route there is finding a good realtor and a good short-term rental property manager that is going to help you find and manage the deals. That person is not most of the time looking to do the day-to-day. They don’t want to manage the cleaners, do the cleanings or message the guests and that’s fine but you need a good property manager for short-term rentals and a good realtor. That’s a great place to start.
If you already have money, the quickest way to more wealth is to find a good realtor and a good short-term rental property manager. Click To TweetThere is the other side, someone that says, “I’m looking to leave my 9:00 to 5:00 job. I make a good income in my 9:00 to 5:00 job but it doesn’t fulfill me. It keeps me away from my family. I don’t get to travel as much. I’m tied to this 9:00 to 5:00 job.” This is someone that, to me, needs to go down the route of arbitrage and cohosting to build up cashflow and solve that need that they need in their life. Maybe they’re making $10,000 a month. Let’s go get you 5 or 10 arbitrage or cohosting deals. Get that $10,000 a month, replace that full-time income and 10X this thing to where we can get that to $50,000, $60,000 or $100,000 a month and focus on the wealth-building side of it.
They are going to fall into one or the other most of the time. If you are sitting here and feeling like, “I’m that second person. I’m the 9:00 to 5:00 job that I need to leave,” we’ve got a coaching program. It’s called The Short-Term Rental Kickstart Course. Usually, it’s $1,497 but because I love Chris and what he is doing here, we’re going to give it to your audience, Chris, for $500 off, $997. That’s a business in a box.
Go to my YouTube channel. You are going to get information, about the course and instructions. It’s going to show you step by step exactly what to do. You’re going to get the contracts, how-tos, templates, scripts and all the resources, every single thing that you need and exactly the way that I built my business. For under $1,000, you could go and build a six-figure business. We have tons of students who have done that. I had one who signed up in February. He already has collected to date under $1 million on Airbnb alone, not VRBO included. He has over 50 listings. This guy’s life has changed in less than six months. It’s extremely possible to do that. All you got to do is do the work.
That’s the key. It only works if you work. That is very generous, Kyle. Starting any business, for that matter, most people will pay tens of thousands of dollars to hire a coach to help them do that. For you to do that at a fraction of the cost, give them all those resources and things and be able to do that is incredible.
It’s easy to be able to go buy and invest in yourself but you got to do the work. If there is anything I can encourage anyone to do, don’t be a lover of learning. Be a lover of learning and doing.
That’s what we talk about in this show. If you have read at least three episodes, you know that at some point, we’re going to say, “I’m glad you listen to Kyle but at some point, you got to be more than a reader. You got to be a doer as well.” Kyle, I appreciate that. There is so much good information. You have given us some help on the cohosting part. That was a valuable resource.
Any of you are looking to get into this more and into short-term rentals but want to do it without having to screw it up. The most expensive thing in this is not education. It’s ignorance. It is doing it wrong because you didn’t know what was right. Kyle, you already spent hundreds of thousands of dollars learning how to do it right, wrong, left and right so that you can get this patched for less than $1,000.
It’s the same reason why I spent $30,000 on my education to get into flipping. Before I even did Airbnb, I did flipping. I said, “This is going to cost me $30,000. What if I didn’t have this education? I went and bought a bad deal. What could that cost me?” That could cost me way more than $30,000. That could cost me even a lawsuit if I don’t know what I’m doing.
It’s the same thing in any education. You’re either going to do it to make fewer mistakes, move faster or do both. To your point, that would be an awesome place. If you’re still not sure if you want to invest, I got a lot of free resources out there. My YouTube channel and podcasts are both The Fearless Investor. You can go to FearlessKyle.com as my website and get all of our resources.
There is a reason why I bring Kyle back. When people ask me, “Whom do you trust that helps teach short-term rentals,” Kyle is my guy. I’m not saying he is the only guy out there but Kyle does it well. He is a genuine guy. Birds of the same feather flock together. I like people that are like me. They are real people that care about you getting results. Kyle, thank you so much for being with us. For the rest of you, thank you for joining us. Don’t be just a reader but be a doer as well. That is when your life begins to change. Make it a great week. Everybody, we’ll see you later.
Important Links
- Apple Podcasts – Money Ripples Podcast
- Kyle Stanley
- The Fearless Investor Podcast
- CohostMarket.com
- The Short-Term Rental Kickstart Course
- The Fearless Investor – YouTube
About Kyle Stanley
Kyle Stanley is an AirBnb Superhost from Fresno, California and podcast host of “The Fearless Investor Podcast.” Kyle grew his STR business from $3K to $20K per month in less than 1 year… during COVID. Now he teaches other hosts to do the same.