Is Airbnb Worth It In 2024?

What’s up guys? Let’s answer the question today is Airbnb really worth it in 2024? Now, I get asked this question relatively frequently, a lot of people come to me saying, Well, you know, I’m sure I’m pretty late to the game is Airbnb worth it? Is the market still good? Is the market saturated? Can you really still make money on Airbnb in 2024? You know, wasn’t the there a big huge rush with everything going on with COVID? Haven’t I kind of missed the boat? And so I want to do my best to answer that question for you all here, so that you can better decide what steps to take and what direction you want to go here in 2024 when it comes to Airbnb and short term rentals. Now, first off, I want to say that I can’t necessarily answer the question is Airbnb worth it in 2024, without knowing your unique situation, because the reality is everyone has different criteria for what they’re looking for, and what they define as worth it. Because ultimately, when you look at worth it from a dollars and cents perspective, then we’re probably looking at investing and actually purchasing short term rentals. The answer is likely yes. But there’s more than just dollars and cents going into short term rental investing, there’s obviously your time, there’s your focus. And so you have to make a very personal decision of whether Airbnb is worth it for you or not. Now, I can say that from a dollars and cents perspective, now is a fantastic time to get started with short term rentals, whether you’re looking to manage other people’s properties, or host your own space, or convert a long term rental over to short term rental or start investing and grow your portfolio of short term rental investment property specifically, and I can talk at length and we’ll touch on in this video, why that is and where to find really great deals and how to make the most of it. And ultimately, all of this comes back to you making a personal decision for yourself whether it’s worth it for you to get started on Airbnb. And so hopefully this video will serve as a an effective guide for you and figuring out what is true for you. And if you know Airbnb is in the cards for you which path makes the most sense. So let’s get started with hosting your own space. Because that’s probably the easiest place to get started is the lowest hanging fruit, now’s a really great time to get started. Because frankly, there’s never a bad time to get started hosting your Squarespace, you can just make extra money off of it. And so it’s purely just a matter of is it worth the time for you to put it in to get the money you’re going to get out? Now if we look at a slightly more complicated situation, let’s say that you already have a place that’s being rented long term, and you’re thinking about transitioning it over to short term is now a really good time. Well, I would say yes, in the majority of cases, again, depending on the amount of time and effort you’re willing to put in to get the extra money you’re gonna get out because in most cases, not all, but most cases, you’re gonna get several different benefits from transitioning from long term rental over to short term rental. One big one that everyone obviously is thinking about is the additional returns, you’re often going to get two maybe even three or four times more money depending on the market that you’re in, by renting your property short term as opposed to renting it long term. Now, this additional money does come with additional work that has to be done. But if you set up the right teams and the right systems, that work can be done by your teams and your systems and not by you yourself. Obviously that takes work to set up initially, I’m a big advocate for doing anything where you can set it up once and then scale that system scale that team to make you a bunch more multiples more money. So if it’s money you’re looking for, then ultimately in most cases, you are going to make quite a bit more with a short term rental than a long term rental. And if you’re curious for your market, specifically exactly how much more you would make, then err DNA and different data tools are going to be your best friend for running the analysis and figuring that out. The other side benefit of this is that you get a lot more control over your property. When you have that as a short term rental than a long term rental, you get to go in there and get actual visibility of your property more regularly, you get cleaners in there more regularly. And you don’t have to deal with evictions, which is a really, really, really big plus, for anyone that’s concerned about putting all of their hard earned money into buying a property only to have someone come and stop paying rent and not being able to get those people out. Shout out Ontario and other very, very tenant friendly areas. If you don’t want to deal with that headache, Airbnb and short term rentals makes it simple. If someone overstayed their welcome, that is trespassing. It’s a simple call to the police to get them out of there as opposed to a lengthy eviction process. And the nice benefit is you also have all these different safeguards and protections in place. So the issues like that really, really rarely ever happen. I’ve been hosting for 10 years and I’ve never once had to call the police to get someone out of my property. And I’ve hosted you know, 10s and 10s of different properties, whether it’s through managing them whether you’re owning them, it’s very very rare for something like that to happen. What about actually buying a property for short term rental is now actually a good market is now a good time? Again, my answer is largely Yes, again, obviously is an individual question that you have to ask yourself as far as the effort you’re willing to put in for the output that you want to get out. But largely now, just in the market is a very good time to buy. And if you’ve been following along on this channel for any length of time, you’ll know that I’m a big advocate for there never really been a bad time to buy a real estate. There’s just good deals and bad deals. And in a good market, there’s more good deals. And in a bad market, there’s more bad deals. But at any point in the market cycle, you can always find good deals if you look hard enough, and you can always find bad deals, and you almost never have to look too too far for them. Because there’s always someone crazy enough to throw up some insane price on their property that makes it a horrible, horrible deal. Guys just want to take a quick break here to say that for those of you watching, who want to build cashflow, and long term wealth by purchasing Airbnb and short term rental properties, there’s a link in the description right down below for a free training that will walk you through my exact strategy for investing successfully in Airbnb ease. Now, if you’re not ready to actually buy properties, and you want to get started managing other people’s properties on Airbnb the same way I got started and build a full time income managing other people’s properties, there’s actually another free training linked in the description down below as well, that’ll be a really great fit for you. So whether you want to invest in short term rental properties, and actually build amazing cash flow and long term wealth by acquiring the assets, buying the properties themselves, or you’re looking to earn a full time income, managing other people’s properties on Airbnb, we’ve got some awesome trainings that are linked in the description down below, that’ll definitely help you out. When you sign up for the trainings, we’re also going to send you a few other tools and resources completely for free just to help you get started. Again, the links to sign up are in the description down below. And both trainings and all the tools are completely free. So make sure to register for the trainings, links in the description down below. So ultimately moreso than timing when it comes to investing, it’s about having the right tools, the right systems, the right approach, the right due diligence to be able to spot good deals and differentiate them from bad deals.

But if we zoom out a little bit further now just is an opportunity right now there’s a time in the market right now where there are more good deals than there were over the last probably 612 18 months, because interest rates are higher, probably seems counterintuitive, right? When interest rates are higher, that means it’s more expensive. Why doesn’t it? Well, not necessarily. And this is a little bit of a hard thought process to follow. But if you if you stick with me, I promise it does make a lot of sense. At the end of the day, when you buy a property, you’re locking in two things, you’re locking in your purchase price, and you’re locking in your interest rate on your mortgage, now you might have a variable interest rate on your mortgage, we’ll set that aside for right now. But you’re basically agreeing to the purchase price of this is how many dollars I’m going to spend on the property. And this is the interest I’m going to spend on borrowing that property now one of them the interest rate is going to fluctuate over time. Even if you lock in a fixed rate mortgage, when it comes time for renewal on that you’re gonna get a new rate and a new payment, if you have a variable rate mortgage is gonna vary all the time. So that has room to go up has room to go down. When you’re locking in your purchase price, it is exactly what it is, it’s not going up, it’s not going down doesn’t matter what happens over time, you’re never gonna go back to the person that sold you that property and say, Hey, I’m gonna give you more money for it, or hey, I want to give you have less money for it, the deal is done, it’s set in stone, you’re not going to change that. And so when you buy at a time when interest rates are at their lowest ever, you’re now agreeing to a higher purchase price for that property, you’re locking that purchase price and higher because prices tend to go up as interest rates come down. And then you’re also agreeing that you’re never going to pay less to carry that property and support the mortgage payments than you are right now. Because interest rates when they’re at their lowest by nature, they can only ever go up if anything. Whereas if you buy a property with a higher interest rate like it is right now, then you’re going to usually be paying a lower purchase price, you’re locking that in a lower rate, which is really, really good. And there is room for that interest rate to go up but also room for it to go down. And that’s not to say that you should speculate on where the interest rate is going to go. But it is to say that you’re automatically locked in a lower purchase price which is good and you now have room for your variable expenses, your mortgage payment, your interest to actually come down over time and for you to make more cashflow. Now obviously I always recommend that you make sure you buy a deal where even if the interest rates stay where they are or they go up, you’re still going to be cashflow positive, but it just gives you more potential upside to be able to buy when interest rates are higher like they are right now. The other thing is most people are very emotional with their purchasing. And so when interest rates are higher, a lot more people are scared out of the market. So There tends to be less competition, less competition leads to lower prices, lower prices leads to better deals. So there’s just a greater quantity of really great deals out there. Right now, there’s a way for your bidding wars in most markets, compared to 612 18 months ago. So it’s just generally easier to find really, really good deals right now, which is what makes right now a relatively good time to buy. Again, I’m a big advocate for there never really been a bad time to buy real estate, it’s always better to have your money in real estate than to waste away to inflation. But all things being equal, now is a relatively good time to buy real estate because there are just more good deals available. They’re easier to come by now, what about Lastly, if you want to start managing other people’s properties on Airbnb, you want to start building a business managing those properties? Well, again, I would say, and I’m biassed, but I would say that now is a very good time to get started. Again, I’ve been doing this for about 10 years now. So I’ve been observing a variety of different trends that have been going on the ups, the downs, everything else. And what generally happens is whenever we have a big boom and new people coming in and buying short term rental properties, shortly thereafter, we then see the boom of people needing Property Management Services. And we’ve certainly been seeing that lately. Over the last six to 12 months, I’ve seen a lot more demand for short term rental management than in years prior to that. The reason is a lot of people that were very brand new to Airbnb and short term rentals as an industry, they started buying when they saw all the opportunity coming in 2020 2021 2022. And so because they started buying and they’re inexperienced, that combination means they’re naturally going to need property management companies to help them actually manage the property and make it profitable. A lot of them came in and kind of bit off more than they can chew. And now they need a lot of help. So I’m observing that with the students, I coach NVMe mastery programme showing them how to build a business managing properties. And there’s a lot more demand, I’ve got people picking up multiple properties and blocks from different investors that have gone big into short term rentals. So there’s just a lot of opportunity there. There’s a lot of markets that are also chronically underserved when it comes to short term rental management. And there’s a lot of management companies that just frankly, don’t really know what they’re doing aren’t doing a good job, especially the big national chains like evolve a casa what have you, they don’t have necessarily the best reputation for doing really great job. So there’s a lot of people that are looking for better services, there’s a lot of demand for really good qualified short term rental managers who can do a good job managing the property. So all in all, I would say that Airbnb is really, really well worth it from a dollars and cents perspective. In 2024. Regardless of the path you’re choosing, as long as you have the right guidance, as long as you have the right tools, the right system to do it really effectively. So that’s my take, I want to know yours, though, obviously, is is a personal choice of you going out if I’m gonna put my time my ever my money here, I’m not putting it in somewhere else. And so with Airbnb investing, for example, you’re gonna get a 15 to 20% cash on cash return, you want to look at where else you can potentially get a similar return or, you know, hey, what if I go and do something completely passive, I just invest in index funds, what’s my return going to be there for me, I still like putting my money into short term rental properties, because it’s very consistent, it’s very dependable and backed by real estate, which is also getting the appreciation I’m getting equity building long term wealth building over time, and a 15 to 20% Cash Flow return is a really good return compared to what I could get investing in index funds like that, that is more passive. And ultimately it can be very, very passive to invest in short term rentals once you have the system set up to do so. So those are my thoughts. Those are my opinions. I want to know yours. Let me know in the comment section down below. 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